Glossary
A number of special terms have been used in our pension guides. These are needed to accurately describe the Plan’s benefits to you.
Additional Voluntary Contributions (AVCs)
AVCs are a way of topping up your pension. You pay additional contributions to a Money Purchase Arrangement. Your accumulated AVC fund is then used to buy yourself additional benefits at retirement in addition to your Plan pension.
Added Pension
A set amount of additional annual pension each year that can be purchased by regular monthly contributions over a 12-month period via payroll.
Added Years
A set amount of added years of Reckonable Service that certain members were able to purchase each year over a 12-month period via payroll. No new Added Years’ contracts will be permitted from 1 April 2024.
Adult Dependant
A person, other than a Member’s child, who is over the age of 18 and is financially dependent on or interdependent with the Member.
Annual Allowance
The limit set by Government each year on the amount of pension savings that you can make tax free. The limit is currently capped at £60,000 (for 2024/2025 tax year) although a lower limit of £10,000 may apply if you have already started accessing your pension. If your annual income is over £200,000 the standard annual allowance may also reduced in proportion to your income. The Annual Allowance applies across all of the schemes to which you belong, it is not a ‘per scheme’ limit and includes all of the contributions that you or your employer pay or anyone else who pays on your behalf.
CARE
In a Career Average Revalued Earnings (CARE) pension scheme, your pension is calculated based on your earnings for every year of service.
CARE Year
A CARE Year starts on 1 April and ends on the following 31 March. The first CARE Year starts on 1 April 2024 and ends on 31 March 2025.
CARE Pensionable Earnings
CARE Pensionable Earnings means the total earnings you receive from your employer during a CARE Year, including salary (in most cases excluding Shift Pay), wages, responsibility allowance and any other earnings included in the definition of pensionable earnings as decided by the NDA and notified to you in writing but excluding overtime, bonuses and shift pay for most members. Other elements of earnings may be included as part of CARE Pensionable Earnings for some members on an individual basis. . Pensionable Earnings are subject to a maximum of the Earnings Cap for most members who joined the CPS or the Plan on or after 1 June 1989.
CARE Pensionable Service
CARE Pensionable Service means any pensionable service whilst accruing benefits on a CARE basis, i.e. after the 1 April 2024.
Child and children
A child is a person who is a child of yours or certain other people who are dependant on you and aged less than 17 or in full time education or vocational training and aged 23 or less. A child is not eligible for benefits if they were not a child at the date your active membership ceased, or if they are married or cohabiting.
Civil Partner
Your registered partner as defined under Section 1 of the Civil Partnership Act 2004.
CPS
The United Kingdom Atomic Energy Authority Combined Pension Scheme.
CPS Reckonable Service
This is the years and days that count towards your pension in the CPS. Generally, CPS Reckonable Service is the number of days that you were a member of the CPS including any transfers in or additionally purchased service.
Dependant
A Dependant can be your Spouse, Civil Partner, or anyone else who relies on you financially or with whom you are financially interdependent (as determined by the Trustee).
Earnings Cap
Pensionable Earnings for most members who joined the CPS or the Plan on or after 1 June 1989 are subject to a maximum of the Earnings Cap. In the 2025/26 tax year this is £230,400. The Earnings Cap will be increased in line with the increase in RPI.
Enhancement, enhance and enhanced
If you retire early because of ill health or die in service your benefits may increase by an amount calculated by reference to the Reckonable Service you have in the Plan when your pension is calculated. This is called an Enhancement and the circumstances in which this may apply are set out in this booklet.
Final Salary Reckonable Service
This is the years and days of your Reckonable Service that count towards your pension up to the 31 March 2024. The maximum number of years that can count for this part of your pension is 45.
Full Time Equivalent
Should you retire during or following a period of part-time working, this is applied to any Pensionable Final Earnings earned whilst carrying out this part-time service when working out your Final Salary benefits. The Pensionable Final Earnings will be increased by multiplying the ratio of relevant full-time to part-time hours.
Guaranteed Minimum Pension (GMP)
A minimum pension normally provided through a workplace pension scheme to people who contracted-out of the additional State Pension between 6 April 1978 and 5 April 1997
LifePath
The Aegon BlackRock LifePath funds are what’s known as target dated funds. This means they automatically change what they invest in as you get closer to your selected retirement date.
Lump Sum
A significant portion, or the entirety, of your retirement fund paid out all at once instead of as regular, recurring pension payments.
Medical Grounds
For the purpose of receiving your benefits before your Pension Age due to ill health, Medical Grounds means you’re permanently unable to undertake your normal duties of employment.
Minimum Pension Age
Your Minimum Pension Age is the earliest age at which you can take a pension from the Plan under rules related to tax legislation. The standard normal minimum pension age is currently 55 but will rise to age 57 with effect from 6 April 2028. If you have a Protected Pension Age which is lower that will be your Minimum Pension Age. The Minimum Pension Age does not apply if you are taking a pension on Medical Grounds.
Money Purchase Arrangement
In a Money Purchase Arrangement your contributions are used to build up a separate retirement fund. These contributions are invested and then used to supplement your main Plan benefits at retirement. The amount in your Money Purchase Arrangement will depend on the level of contributions and investment return earned on your contributions and any applicable charges.
Pension Age
This is the earliest age you can usually take your pension without it being reduced because of early payment. Your Pension Age is age 60 or as stated in your contract of employment.
Pension Savings Statement
Pension providers are required to send Pension Savings Statements to members to help them keep track of their pension savings if their total pension input amount is greater than the Annual Allowance for the tax year.
Pensionable Earnings
This is your permanent basic pay, wages, responsibility allowance and any other earnings included in the definition of pensionable earnings as decided by the NDA and notified to you in writing but excluding overtime, bonuses and shift pay for most members. Other elements of earnings may be included as part of Pensionable Earnings for some members on an individual basis. Pensionable Earnings are subject to a maximum of the Earnings Cap for most members who joined the CPS or the Plan on or after 1 June 1989. Certain members, who were employed before 1991 and elected to have their Shift Pay pensioned through the CPS, will continue to have their Shift Pay included in their Pensionable Earnings.
Pensionable Final Earnings
This is your Pensionable Earnings in whichever 365 day period in the last 1,095 consecutive days of Reckonable Service gives the highest figure. If you have less than three years’ service, your Pensionable Final Earnings will be calculated over the period of service you have completed. Your pension is based on Pensionable Final Earnings.
Pensionable Shift Pay
Pensionable Shift Pay is the amount of your shift pay which your employer has designated as pensionable. Members, who were employed by UKAEA/BNFL before 1991, may have chosen to have their shift pay pensionable through the CPS, in which case their shift pay will continue to be pensioned under the Plan but on a CARE basis. In all other cases shift pay will be pensioned under the SPPP.
Permanently Incapacitated Child
Your Child is deemed to be a Permanently Incapacitated Child if they are likely to be permanently disabled and therefore unable to earn their own living.
Plan
The Combined Nuclear Pension Plan.
Plan Actuary
An actuary appointed by the Trustee to carry out valuations of the Plan and to provide actuarial funding advice, in accordance with legislation.
Preserve and preserved
If you leave service and stop earning benefits in the Plan with more than two years’ Qualifying Service, you can leave the pension benefits you have built up in the Plan. You will then normally receive a pension when you reach Pension Age. Alternatively, you can choose to transfer your Preserved benefits to another pension arrangement before you retire.
Protected Pension Age
A provision in tax law allows some individuals to take their pension benefits before reaching the standard normal minimum pension age (currently 55) applicable by tax law. This applies to individuals who have a right to take their pension at an age below 55 and that lower age will be their Protected Pension Age. The standard normal minimum pension age will rise to age 57 with effect from 6 April 2028.
Qualifying Service
This is the years and days that you have been a member of the Plan, and it qualifies you for certain benefits. Qualifying Service in the CPS will count as Qualifying Service under the Plan. No adjustment is made for part-time service.
Reckonable Service
This is the years and days that count towards your pension. Generally, Reckonable Service is the number of days that you’re earning benefits as a member of the Plan including any additionally purchased service. If you continue working past your Pension Age, you can continue building up Reckonable Service whilst you continue paying contributions. This is the total service in the Plan i.e. the total of any Final Salary Reckonable Service and CARE Pensionable Service in the CNPP.
Same Sex Spouse
A person who has entered into a marriage with another person of the same sex in accordance with the Marriage (Same Sex Couples) Act 2013.
Shift Pay
Extra pay you receive by way of shift supplement in respect of shift working which applies to certain members.
Shift Pay Pension Plan (SPPP)
A Money Purchase Arrangement into which you may pay contributions based on your Pensionable Shift Pay.
State Pension Age
Your State Pension age is the earliest age you can start receiving your State Pension.
Spouse
The person you’re legally married to, your Same Sex Spouse, or your Civil Partner at the date of your death. An ex-husband or ex-wife you’re legally divorced from, ex-Same Sex Spouse or ex-Civil Partner, cannot receive a Spouse’s pension.
Single Tier State Pension
From 6 April 2016 contracting-out ceased and the basic State Pension, State Earnings Related Pension Scheme (SERPS) and State Second Pension (S2P) were replaced by the Single Tier State Pension for members that reach State Pension Age after 6 April 2016 The amount you receive depends on your National Insurance contributions that are made during your working lifetime.
The Finance Act 2004
This law created much of the framework for the current pension system in the UK, including the establishment of a single regime for taxing pension schemes, and the introduction of the Annual Allowance.
Trivial Commutation Lump Sum
Taking all of your pension as a one-off cash lump sum is called ‘trivial commutation’ or ‘small pot’ commutation. The government sets strict rules about who can trivially commute their pension and it is generally only available for small pension pots.
Trivial Commutation Lump Sum Death Benefit
A cash lump-sum that can sometimes be paid by a registered pension scheme on a member’s death. The government sets strict rules about who can trivially commute their pension and it is generally only available for small pension pots.
Trustee
The trustee board of the Plan. The trustee board is responsible for ensuring that the pension scheme is run properly and that members’ benefits are secure.
Further help and support
The Money Helper website provides a range of advice on pensions and retirement.