Your contributions

As a member of the Combined Pension Scheme you would pay contributions at the rate of 8.2% (10.7% for members of the Principal Non-Industrial Superannuation Scheme) of your pensionable pay if the pensionable pay is £21,000 or more. If your pensionable earnings are between £15,000 and £20,999 your contribution would be 6.5% of pensionable pay. If your pensionable pay is less than 15,000 you would pay 5% of pensionable pay. Contribution rates are determined by the member's full time equivalent rate of pensionable pay.

Members working part time pay contributions on their actual pensionable earnings.  Benefits are calculated on the full time equivalent pensionable pay with an appropriate adjustment to reckonable service. 

Your contributions to the the pension scheme qualify for tax relief . See below for details of the tax position.

The Earnings “Cap”

The Finance Act 1989 introduced an earnings cap for pension contributions and benefits.

If you joined the United Kingdom Atomic Energy Authority pension schemes on or after 1 June 1989 or choose to be considered as though you had joined after this date, your contributions and benefits would be based on earnings which are not more than the maximum level of earnings set by the government each year. Any earnings in excess of the “earnings cap” are ignored for the pension purposes. For the 2023/24 tax year, "the earnings cap" is set at £205,200.

Does your employer pay anything?

Your basic Scheme contribution rate does not normally vary, but your employer is required to make contributions at whatever rate is needed to meet the cost of providing your benefits. The current employer contribution rates as list below:

o UKAEA 21.5%
o CNC 20.7%
o NDA, INS, NNL 18.9%
o UKRI 15.8%
o Ministry of Defence 15.8%

The Tax Position

Tax Relief on Benefits and Contributions

Tax relief is available on the following:

- The pension lump sum payable at normal retirement

- Death Benefit lump sums

- Member’s contributions, to either the United Kingdom Atomic Energy Authority final salary   schemes or the AVC Scheme or Shift Pay Pension Plan, within HM Revenue and Customs limits

- Pensions are treated as income and taxed under the PAYE system

National Insurance Contributions - Contracting-out Arrangements

Prior to 6 April 2016 the Scheme is contracted-out of the Second State Pension (S2P), and as a result members paid lower national insurance contributions. 

With effect from 6th April 2016, with the introduction of a Single Tier State Pension, the contracting out arrangements will cease and as a result the rebate on Contracted-Out contributions of 1.4% for employees and 3.4% for employers will cease.

New scheme members are normally entered automatically into the scheme.

If you do opt out of membership of the Scheme, you may be allowed to rejoin the Scheme at a later date.

If you opt out with less than 3 months pensionable service your contributions will be refunded.

If you have between 3 months and two years' service when you opt out then you will be offered a refund of contributions or a transfer value to another scheme.

If you rejoin the pension scheme then you would start accruing pension benefits again. If you previously had more than two years' service in the scheme then your previous service is deferred and you would start contributing to a new pension when you re-join. These periods of service cannot be joined in the case of opt-out.

The Auto Enrolment arrangements will mean that for individuals who have opted out of the pension scheme your employer must enrol you back into the Scheme every three years unless you are not covered by the Auto Enrolment arrangements.

The form to opt out of the Scheme must be obtained from the scheme administrators and once completed returned to your HR representative. The opt out form provides more information on the implications of opting out and the benefits of the scheme that you will be giving up.

Benefits for your dependants will be important to you. If you die whilst you are still employed and a contributing member of a United Kingdom Atomic Energy Authority pension scheme then, regardless of the length of your service, a lump sum of twice your final earnings may be paid to whoever you nominate to receive it. If having left the Scheme you die before normal retirement age, then a lump sum payment equal to the value of your preserved lump sum may be payable to the person you have nominated to receive it.

You may nominate more than one person if you wish to do so, but the total proportions must equal one hundred percent.

You will need to complete the Nomination for Death Benefit Form and send it to the scheme administrators to indicate who you wish to receive the payment. To avoid any confusion you should make sure that you keep the details of the person you wish to receive the payment up to date so that the payment can if necessary be made promptly.

If your marital status changes a fresh Nomination Form will be required after marriage or divorce, even if the nominee remains the same.

A court may, at the time of a divorce, order that on the death of a scheme member, or a former member, all or part of the death benefit be paid to the former spouse. Where this is the case, any balance may be paid to the nominee.

If you are not married to the nominee, but are living together, your nomination will remain valid if your relationship with the nominee comes to an end. You should review the nomination to make sure that it contains your wishes for the disposal of the lump sum payment.

If you have not made a valid nomination, the Scheme may pay the death benefit lump sum to your legal personal representatives.

Can I transfer my benefits from another scheme into the Combined Pension Scheme?

Provided the Scheme administrators receive your application within 12 months of joining the Combined Pension Scheme, you may be able to transfer benefits from a previous pension arrangement(s) to the Scheme. Remember your previous scheme may have time limits which may prevent you transferring benefits from them (particularly if you may be due a refund of your contributions) and you should check the position to avoid disappointment.

You should complete a request form to transfer from a previous scheme, which provides us with all the necessary details about your previous pension arrangement(s). Asking for information about a transfer of benefits from a previous scheme does not commit you to transferring those benefits. At this stage you are merely expressing an interest in transferring your benefits so that we can obtain the necessary information.

The CPS Scheme Administrators will ask your former scheme for the details about the transfer value payment they would pay to the Combined Pension Scheme. We will calculate and notify you of how much service would be credited for you in the Combined Pension Scheme in exchange for the transfer value from your former scheme. The service credit is calculated using factors provided by our scheme actuary.

It will be your choice whether you want to transfer your former benefits into the Combined Pension Scheme. We cannot advise you whether to transfer your previous pension arrangement(s) into the Combined Pension Scheme. If you need advice you should consult a Financial Adviser.

We will provide you with details of the amount of service which can be purchased in the Combined Pension Scheme, together with a calculation showing the level of additional benefits such a transfer would buy in the Scheme to assist you and if necessary your financial adviser with the decision on whether to transfer the benefits into the United Kingdom Atomic Energy Authority Scheme or leave them in the previous arrangement(s).

Depending on your previous pension arrangement(s), and other factors such as your salary and retirement age in your previous scheme, it may well be that you will not be credited with exactly the same number of years of service in the Combined Pension Scheme as under your previous pension arrangement(s).

It is important to note that should you transfer in benefits from a Stakeholder or personal pension arrangement, you will not be able to have a refund of the contributions should you leave employment with less than two years qualifying service.

For further information see the leaflet "Transferring Your Pension Benefits to the Combined Pension Scheme" If after reading the leaflet you require further information, please contact your Employee Representative, or for UKAEA employees only the scheme administrators.

What if I already have a preserved award in the United Kingdom Atomic Energy Authority pension scheme?

If you already have a preserved award in the United Kingdom Atomic Energy Authority pension and are re-employed by an employer who participates in the United Kingdom Atomic Energy Authority pension scheme after a break of less than 6 months your two periods of service will be combined.

If the break in service is more than six months you will need to make a specific option to combine/aggregate the two periods of service within 12 months of rejoining the UKAEA scheme. A key feature in your consideration is a comparison of potential price inflation to you normal pension age (which be applied to your preserved award) compared to your potential increase in salary to normal pension age.

However, if the reason that you have a preserved award is the United Kingdom Atomic Energy Authority pension scheme was owing to the fact that you opted out of the scheme, then you will given two single awards.

The United Kingdom Atomic Energy Authority pension schemes are established under section 7 (2) b of the First Schedule to the Atomic Energy Authority Act 1954 as amended. The original schemes were the United Kingdom Atomic Energy Authority Principal Non-Industrial Superannuation Scheme, the United Kingdom Atomic Energy Authority Industrial Superannuation Scheme and the Protected Persons Superannuation Scheme.

The Combined Pension Scheme of the United Kingdom Atomic Energy Authority was formed on 1 July 1997 by merging the Principal Non-Industrial Superannuation Scheme (PNISS) and the Industrial Superannuation Scheme (ISS) for members employed by United Kingdom Atomic Energy Auority, British Nuclear Fuels plc and some employees of the Health Protection Agency, who were formerly employed by the National Radiological Protection Board. With effect from 1 April 2005 membership of the scheme extended to employees of the Civil Nuclear Police Authority.

For historical reasons the Principal Non-Industrial Superannuation Scheme still has members of the Engineering and Physical Science Research Council, the Particle Physics and Astronomy Research Council, the Council for the Central Laboratory of the Research Councils and the Ministry of Defence.

Pensions administration

The day-to-day work of keeping membership records, calculation and payment of benefits is carried out by EQ the Scheme Administrators. Enquiries about your pension Scheme and any of the additional options available should be made either to your Employee Representative or to the Scheme Administrators.

Management and policy

The management of the Scheme and Scheme policy is the responsibility of the United Kingdom Atomic Energy Authority. Enquiries about Scheme policy should in the first instance should be addressed to the Scheme Administrators.

Complaints and disputes

The United Kingdom Atomic Energy Authority schemes have an Internal Dispute Resolution procedure (IDR) which is the formal way we deal with complaints about the scheme. Virtually all occupational pension schemes must operate IDR.

Under IDR you can complain about anything to do with your United Kingdom Atomic Energy Authority pension.

First stage the UKAEA Head of Pensions will give you a written explanation of the decision or action that has been taken.

Second stage if you feel that the first stage does not resolve things, you can write to the CFO and Director of Property and Corporate Services, who will give you a written decision, either upholding or rejecting the decision made by the UKAEA Head of Pensions. The Authority will also tell you of your further appeal rights to the Pensions Ombudsman.

You can ask the scheme administrators to give you appeal forms for both IDR stages. Both first and second stages have 8 week deadlines for the decision to be made. You can ask MoneyHelper for advice at any time. Their phone number is 0800 011 3797.

To view a copy of the full procedure, click here:

Internal Disputes Resolution Procedure

MoneyHelper

MoneyHelper can be contacted to assist you or your beneficiaries with any pensions query you may have, particularly if you have a dispute or disagreement with the United Kingdom Atomic Energy Authority pension administrators, which you wish to or have raised under the United Kingdom Atomic Energy Authority scheme’s own Internal Disputes Resolution Procedure. The MoneyHelper website contains useful information, and you can contact them via web chat or by completing an online form here:

https://www.moneyhelper.org.uk/

Alternatively, you can call them on 0800 011 3797.

The Pensions Ombudsman

If MoneyHelper is unable to resolve any problems then you can contact the Pensions Ombudsman. The Ombudsman is able to investigate and determine any complaint or dispute of fact or law relating to pension schemes except that, in respect of the United Kingdom Atomic Energy Authority pension schemes, which are statutory schemes, the Ombudsman is empowered to determine any complaint alleging injustice as a result of maladministration in connection with any act or omission of those responsible for administration of the United Kingdom Atomic Energy Authority pension schemes.

For details of how to contact The Pensions Ombudsman, please click here:

https://www.pensions-ombudsman.org.uk/

Pension Tracing Service

Please see this website for details of how to find contact details of other pensions:

https://www.gov.uk/find-pension-contact-details

State Pension - Department for Work and Pensions

For more information about your State pension you should enquire at your local office of the Department of Work and Pensions (formerly the Department of Social Security). Some of the information you require may be found on the Department for Work and Pensions website, here:

http://www.dwp.gov.uk

United Kingdom Atomic Energy Authority final salary schemes

The United Kingdom Atomic Energy Authority pension schemes are unfunded statutory pension schemes and do not operate under an irrevocable trust. There are no trustees.

Members of the Combined Pension Scheme pay contributions at the rate of 8.2% (10.7% for members of the Principal Non-Industrial Superannuation Scheme) of pensionable pay if the pensionable pay is £21,000 or more. If pensionable earnings are between £15,000 and £20,999 contributions would be 6.5% of pensionable pay. If pensionable pay is less than 15,000 members would pay 5% of pensionable pay. Contribution rates are determined by the member's full time equivalent rate of pensionable pay.

Members working part time pay contributions on their actual pensionable earnings.  Benefits are calculated on the full time equivalent pensionable pay with an appropriate adjustment to reckonable service. 

AVC scheme and shift pay pension plan

The AVC Scheme and Shift Pay Pension Plan are money purchase arrangements. The principal assets are insurance policies with Prudential, the provider of these arrangements.

Only employees pay contributions to the AVC Scheme. There are no employer contributions paid into this arrangement.

With regard to the Shift Pay Pension Plan, if you are a member of the Plan your employer will contribute at the same rate payable to the final salary scheme subject to a minimum rate of 6% of pensionable shift pay. The cost of providing life assurance cover in the Shift Pay Pension Plan is paid for separately by your employer.