Retiring
When can I draw my pension?
You may retire and draw your pension immediately any time once you reach your Pension Age.
You may retire and draw your pension earlier than your Pension Age provided you have at least five years’ Qualifying Service and reached your Minimum Pension Age with consent from the Employer. However, you must elect to forego all or part (as agreed by the Employer) of any compensation payment payable and instead receive a preserved pension as if you had left active membership. Alternatively, in some cases it may be possible to retire early on leaving service (as set out in the Leaving Service section and in Appendix 1 for Former BNFL Members).
You cannot draw your pension before your Minimum Pension Age unless you’re in ill health.
Note that for most members their Minimum Pension Age is 55 but will increase to 57 from 6 April 2028, unless you have a Protected Pension Age.
When you draw your pension your retirement Lump Sum will also be paid.
What happens if I become too ill to work?
If you have at least two years of Qualifying Service and leave your employment before your Pension Age, and in the opinion of your employer and the Section Lead Employer, if based on the advice of the Plan’s medical adviser you satisfy the Medical Grounds (in the opinion of the Trustee), you are entitled to receive an immediate CARE pension, a Final Salary pension (of 1/80th of Pensionable Final Earnings) and Lump Sum (if applicable – of 3/80th of Pensionable Final Earnings) before your Pension Age. These are the normal retirement benefits but based on Pensionable Earnings and Pensionable Service at the date of leaving Pensionable Service.
In cases of serious ill health (if you are medically assessed with a life expectancy of less than 12 months) you may be able to exchange your pension for a Lump Sum on a basis certified as reasonable by the Plan’s actuary.
Ill-health service enhancement
If you are an active member and have completed 5 years of Qualifying Service, you may also receive an ill-health service enhancement to your pension. The ill-health service enhancement is calculated by multiplying the average amount of the CARE pension you have earned each CARE Year by the number of years in the following table.
| Completed years of total Pensionable Service at date of leaving service | Number of years enhancement to CARE pension |
|---|---|
|
5 to 10 years |
Your Pensionable Service |
|
10 to 13 and 1/3 years |
The period necessary to make your total Pensionable Service up to 20 years |
|
More than 13 and 1/3 years |
6 and 2/3 years |
The years of enhancement specified in the first two rows of the table above cannot be more than that which you would have earned if you’d worked until age 65 or in the case of the third row, your Pension Age.
If you receive an ill-health service enhancement and you are married or have nominated an Adult Dependant to receive benefits on your death at the time you left Pensionable Service, your automatic Lump Sum payable on Final Salary benefits (if applicable) will have a deduction applied equal to the period of Pensionable Service that has been enhanced x 0.01875 and multiplied by Pensionable Final Earnings. On the basis that this deduction is applied, your Spouse/Adult Dependant’s pension will be calculated based on your pension including the ill-health service enhancement.
Note that if you have less than two years’ Qualifying Service you will be entitled to a refund of your contributions only, instead of a pension.
No enhancement to your pension would be paid if you have already left the Plan.
You may be asked to submit to medical examinations performed by the Plan’s medical advisers, and the Trustee may suspend, reduce or terminate any ill-health pension if you do not supply evidence of continued ill-health where required or if you earn income from other employment.
Can I carry on working after my Pension Age?
If you carry on in employment after your Pension Age you will continue to build up pension but will be required to pay contributions. Your benefits will come into payment immediately on leaving employment.
How do you pay my pension?
Your pension is paid into your bank or building society account every month. Income tax will be deducted in line with applicable tax rules.
Will you increase my pension whilst in payment?
Once you are receiving your pension, your pension (in excess of GMP) will increase every year in April by reference to inflation measured over the 12-month period ending in the previous September. For your CARE pension the inflation measure is CPI and for your Final Salary pension RPI will be used.
What if I have only built up a small amount of benefits?
If you have only built up a small amount of benefits these can be paid as a Trivial Commutation Lump Sum. The government sets strict rules about who can trivially commute their pension and it is generally only available for small pension pots. The amount of Trivial Commutation Lump Sum you would receive is determined by the Trustee on advice of the Plan’s actuary.