UKAEA Pensions

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Age retirement

Age retirement

New members to the Combined Pension Scheme normally have a scheme pension age of 60. For historical reasons some longer serving members have a retirement age of 65.

The scheme pension age is the earliest age a member can draw an unreduced scheme pension.

 

Can I choose to retire early and receive immediate pension benefits which are reduced to cover the cost of receiving the pension benefits before my normal scheme retirement age?

You are able to choose to retire early with immediate pension benefits subject to an reduction assessed by the schem Actuary depending on your age at thepoint your retire early and subject also to management approval. Please contract your employee representative.

Will I receive a pension and lump sum at retirement?

You will receive a pension, adjusted in line with prices, which is payable for life. Your pension will be paid monthly in arrears into your Bank or Building Society account.

You will also receive a lump sum payment at your retirement which is normally three times the value of your pension. You may choose to increase your lump sum (and reduce the pension) to achieve a lump sum which is 25% of the total value of your scheme benefits.

How is it calculated

Lump sum

Your lump sum will be three eightieths of your final earnings for each year of reckonable service, including any service you have transferred in from a previous pension arrangement and any added years you may have purchased in the United Kingdom Atomic Energy Authority pension scheme. You may choose to increase your lump sum and lower your pension.

You may also choose to lower your lump sum and increase your pension.  If you are interested in this option (known as 'inverse commutation') please ask your employee representative

 

How is the United Kingdom Atomic Energy Authority pension scheme pension and lump sum calculated?
Pension

You will receive one eightieth of your final earnings for each year of reckonable service, including any service you have transferred in from a previous pension arrangement and any added years you may have purchased in the United Kingdom Atomic Energy Authority pension scheme.

Lump sum

Your lump sum will be three eightieths of your final earnings for each year of reckonable service, including any service you have transferred in from a previous pension arrangement and any added years you may have purchased in the United Kingdom Atomic Energy Authority pension scheme.

For some longer serving members there may be a deduction for outstanding family benefit contributions. If you need any further information about family benefit deductions, please contact your employee representative or the scheme administrators.

Click here to access some examples of how the benefits are calculated.

What if I have worked part-time?

Your scheme benefits will reflect the actual hours you have worked.

The full time equivalent pensionable final earnings are used for calculating retirement benefits for periods of part-time working. The service is prorated as a fraction of the normal contractual hours worked by an equivalent full time member.

If for example you worked part-time for 20 hours each week and the full time contractual hours for someone in the same grade were 37 hours per week, the calculation would be based on 20 hours divided by 37 hours. If you joined the scheme at age 35 and retired at age 60. i.e 25 years

Your pension would be calculated using 13 years 187 days service

(25 x 20/37 = 13 years 187 days).

For members who work part-time hours, the death in service lump sum benefit is calculated using the highest twelve months actual pensionable earnings during the last three years of service rather than the full time equivalent pensionable final earnings.