Shift Pay Pension Plan (SPPP)

This section relates to members whose Shift Pay is pensioned through the SPPP. You will automatically be included in the Plan from the day on which you receive your first payment of pensionable shift pay.  

Contributions to the SPPP

The minimum rate at which you contribute to the SPPP is 5.0% of your Pensionable Shift Pay. You can elect to make changes to your SPPP contribution level each month to 7.5%, 10.0%, 12.5%, 15.0%, and in similar increments up to 100% of your Pensionable Shift Pay. If you elect to change your SPPP contribution level more than once in any year, you may be subject to a charge.

Your employer will also contribute to the SPPP. These contributions will be at a level agreed between your employer and the Trustee, having taken advice from the Plan Actuary. Your employer’s contributions are subject to a minimum of 6% of your Pensionable Shift Pay.

Investment Choice

Your SPPP contributions are invested in funds of your choice from a prescribed range. If you do not make a decision on the investment of your contributions, then they will be invested in the Plan default fund chosen by the Trustee. Further details on the default fund and the other funds available are in the SPPP investment guide. The SPPP investment guide and more detailed information on all of the funds available can be obtained by visiting the Plan website cnpp.org.uk or by contacting the Plan Administrator on 0333 207 6523 or email CombinedNuclearPensionPlan@equiniti.com.

If you don’t choose a fund you will be defaulted into a LifePath fund which has a strategy designed to manage some of the risks for you as you approach retirement, by matching the asset allocation of your pension assets to your likely investment objectives at different stages of your working life based on a planned retirement age that you can select.  

The changes will happen automatically, during your early career (from 35+ years from retirement), you would be invested in growth assets, such as equities which have been shown to provide higher growth than other types of investments, but they are more volatile and can go up and down in value suddenly. When you enter your mid-career phase (between 35 and 10 years from retirement), the fund will gradually reduce its investments in growth assets and introduce a mix of less volatile assets, such as bonds and gilts. This aims to protect your account from the ups and downs associated with growth assets. Then, when you get to within 10 years of your retirement date, you will start to switch into a final investment mix, which will focus on less volatile assets, targeting taking a one-off lump sum at retirement.

The disadvantage of LifePath switching is that it targets your chosen retirement date, if you access your pension savings before or after that date your funds may not be switched at the right time. This could result in you investing in lower risk funds too early or higher risk funds for too long. It’s therefore important to check and select an appropriate retirement date on Aegon’s TargetPlan Portal which can be accessed here www.cnpp.org.uk/login/.

Retiring

The SPPP is a Money Purchase Arrangement. The amount of your SPPP fund at retirement will depend on:

1. The amount of contributions paid.
2. Investment performance i.e. the returns on the investment.
3. Any charges (such as investment charges, administration charges, management charges, transaction costs (as a result of buying or selling investments), or costs associated to the provision of death benefits or converting your fund into annuity) If you choose to transfer your SPPP fund out of the Plan, there may be costs of that transfer which will affect the fund value in your receiving scheme.
4. The age at which you access your benefits.
5. The level and type of benefit you choose.

Your accumulated fund will be used to provide additional benefits at your retirement. Benefits may include the purchase of an annuity and/or some Lump Sum. The maximum amount which you can take as a tax-free lump depends on tax rules. Note that if you transfer out of the Plan to access a particular type of lump sum called an “uncrystallised funds pension lump sum” there may be a requirement to take independent advice.

As an alternative you may transfer your SPPP fund to one or more suitable arrangements to obtain additional flexibilities at retirement.

Please note that when your main benefits come into payment (i.e. your Final Salary Pension and CARE pension) your SPPP fund must be put into payment, you cannot take your main benefits and leave your SPPP fund to be put into payment at a later date.

Death benefits prior to retirement

On death before retirement, your accumulated fund will be paid to your Dependants.

On death in service, your Lump Sum will be enhanced to two times the annual rate of your Pensionable Shift Pay (as pensioned under the SPPP) at the date of your death if your accumulated SPPP fund is less than this amount.

Once you leave active membership (and before your SPPP fund has been put into payment), you can transfer your SPPP fund to another pension scheme or arrangement, including to a scheme that offers flexible benefits, independently of your main Plan benefits. Please note that if you have an AVC fund, this must be transferred at the same time as your SPPP fund.