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Supplementary information for Former BNFL Members

Certain members who were members of the GPS Group Pension Scheme and were employed by British Nuclear Fuels plc (referred to as “Former BNFL Members”) are subject to special rules which mean that, for those members, some of the benefits payable and benefit options are different. These rules are complex, so only a high-level summary of the key provisions is provided in this booklet. If you think you fall into this category and you have questions in relation to these benefits payable, please contact the Plan administrator on 0333 207 6523 or email CombinedNuclearPensionPlan@equiniti.com 

Glossary

BNFL Transferring Members are Former BNFL Members who consented to transfer their membership from a Former Scheme to the GPS. 

Former BNFL Members are people who were previously employed by British Nuclear Fuels plc and were a member of specified Former Schemes and whose membership was either transferred to the GPS (or otherwise became a member of the GPS).

Former Schemes these are the following schemes:

  • the Principal Non-Industrial Superannuation Scheme and the Industrial Superannuation Scheme, being pension schemes of the United Kingdom Atomic Energy Authority, up to and including 30 June 1997, and
  • the Combined Pension Scheme of the United Kingdom Atomic Energy Authority on and from 1 July 1997.

Mobile Members are Former BNFL Members who were not “Non-Mobile Members”.

Non-Mobile Members are Former BNFL Members whose former contracts of employment with British Nuclear Fuels Plc did not require them to work at an establishment other than that to which they were posted on recruitment unless it was within daily travelling distance from home.

Early retirement provisions

If you are a Former BNFL Member whose service ceases due to dismissal on grounds of redundancy, on structural grounds or on grounds of limited efficiency you are subject to special early retirement rules, depending on whether or not you are a “Mobile Member”:

  • If you are a Mobile Member aged 50 or over (but have not yet reached Normal Pension Age) and have 5 or more years’ Qualifying Service and your service ceases due to one of the reasons above, you may be entitled to receive an immediate pension (following the end of any period of formal notice for which pay in lieu is allowed). Here, your pension will be increased by the average amount of the CARE pension you have earned for each CARE Year multiplied by 6 and 2/3rds. This is, however, subject to a number of restrictions, including that the increased benefits cannot exceed the benefit you would have received if you had stayed in full-time service until age 60.
  • If you are a Mobile Member aged under 40 but has 5 years’ Qualifying Service and your service ceases due to one of the reasons above, you will be entitled to deferred benefits as if you had resigned voluntarily. The same also applies if you are a Mobile Member who has two or more, but less than 5 years’ Qualifying Service.
  • If you are a Mobile Member aged 40 or over but less than 50 with 5 years’ Qualifying Service there are more complicated rules which apply under which you can choose either a deferred
  • pension or an enhanced pension and lump sum at Minimum Pension Age in relation to your Final Salary Pensionable Service. Where the enhanced pension is chosen (or where you choose a preserved pension but die before Minimum Pension Age), the pension for a Spouse or Adult Dependant is based on the enhanced pension actually payable, or which would have been payable at Minimum Pension Age – note that for this to apply, if you were married or had nominated an Adult Dependant on service ceasing due to the reasons above, then a deduction had to be made to the lump sum payable to you (or from the lump sum death benefit payable).
  • If you are a Non-Mobile Member with five or more years’ Qualifying Service you can, in certain circumstances opt to agree with your Employer to receive a lesser compensation payment from your Employer and your pension and lump sum can be brought into payment immediately (normally, when you reach Normal Minimum Pension Age).

If the above circumstances apply, you may be able to commute your pension into a lump sum, subject to the normal rules on exchanging pension for a lump sum at retirement see Section 3. This is subject to a number of additional restrictions and requirements including:

  • That the lump sum from exchanged pension, plus lump sum payable automatically from the Plan plus compensation payable by the Employer under any applicable compensation scheme cannot exceed two years’ Pensionable Final Earnings.
  • If, by exchanging pension the pension payable falls below a minimum “trivial commutation level” you may be required to commute the whole pension.
  • On reaching Pension Age, a pension which has been reduced due to exchange for lump sum on retirement, will increase to the level it would have been if there had not been any commutation.

In some special cases, where you and your Employer agree that receiving retirement benefits following leaving service due to redundancy (and being over age 50) could not be justified, a lower level of benefits can be agreed (and approved by the NDA).

Permanently Incapacitated Children of Members

If you are a Former BNFL Member or a BNFL Transferring Member there are special provisions for children who are permanently incapacitated* and are wholly or mainly dependent on you.  *Permanently incapacitated here means, that because of a specific mental or physical disability which is likely to be permanent, the Child is unlikely to be able to earn his own living.

Where this applies, you may make one nomination for an invalidity pension. Whilst a nomination is in place extra contributions are payable whilst in Pensionable Service (at a rate of 2% of Pensionable Earnings), although you can opt to make further additional contributions in multiples of 2%, up to a maximum of 13% of Pensionable Earnings (but note that contributions can only be reduced again in limited circumstances).

If a valid nomination is in place and you die whilst remaining a member of the Plan, an invalidity pension is payable to the nominee from the later of your death or when the nominee reaches age 17 (or the Trustee can pay the pension to another person, to be used for the benefit of the nominee).

The invalidity pension is the aggregate of:

  • 1/80 Pensionable Final Earnings multiplied by 50% of his Pensionable Service in relation to Final Salary Pensionable Service; and
  • 50% of the total of the Member’s CARE Pensions.

In most cases additional Pensionable Service purchased via voluntary contributions is not included in the above calculation, but you can opt for it to be included in exchange for a reduction in your Pensionable Final earnings.

Note that the nomination can be revoked by you, or can cease automatically in certain circumstances, including where:

  • the Child is no longer permanently incapacitated; and
  • the Child ceases to be wholly or mainly dependent on you (although temporary breaks in dependency may be disregarded).

Spouse’s pensions

There are special rules which apply to BNFL Transferring Members who joined certain pension schemes* before membership of the Plan prior to specified dates**.

Where these rules apply:

  • If you are a male BNFL Transferring Member, the automatic Lump Sum payable on retirement for Final Salary benefits is based on 2/80 of Pensionable Final Earnings for each year of Pensionable Service prior to the specified date and 3/80 thereafter. Where this applies, the Spouse or Adult’s Dependant is also changed so that it is based on 1/3 (“Industrial” members) or 4/9 (“Non-Industrial” members) of the Member’s pension for Final Salary Pensionable Service prior to the specified date**, and 1/2 of the Member’s pension for Final Salary Pensionable Service thereafter.
  • If you are a female BNFL Transferring Member the Spouse or Adult Dependant’s Pension is changed so Pensionable Service prior to the specified date** is excluded in most circumstances (although some members may have historic rights to uprate Spouse’s pensions).

*See the glossary definition of “Former Schemes”.

**These dates are:

  • in the case of male “Non-Industrial” BNFL Transferring Members (i.e. who was a member of the GPS at a non-industrial grade, or would have been a non-industrial grade if recruited by the principal company of the GPS), 1 June 1972;
  • in the case of male “Industrial” BNFL Transferring Members (i.e. who was a member of the GPS at an industrial grade, or would have been an industrial grade if recruited by the principal company of the GPS), 1 October 1973: and
  • in the case of female BNFL Transferring Members, 1 February 1988.

If you are a BNFL Transferring Member there are also special provisions where you marry, or acquire an Adult dependant between your benefits coming into payment or leaving Pensionable Service and your death.

In these circumstances the pension for the Spouse or Adult Dependant is calculated based on Final Salary Pensionable Service after 5 April 1978 (for a male member) or 5 April 1988 (for a female member).

Limits to Plan benefits

If you are a Former BNFL Member or a BNFL Transferring Member you can elect to be subject to certain limits on Plan benefits (technically called limits applying to a “Class A” member). These are historic limits on benefits, which applied in different ways to different classes of member (Classes “A”, “B” and “C” in particular). These rules are highly complex so if you have any questions in relation to them, please contact he Plan administrator on 0333 207 6523 or email CombinedNuclearPensionPlan@equiniti.com 

Such an election must be made at least one month before: your benefits come into payment, your benefits transferring out of the Plan (or secured with insurance policies) or your 75th birthday.