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 pension  age of 65.

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

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.

On leaving scheme employment you can apply to have your pension benefits paid early on a reduced basis at any time after reaching age 55. We apply a reduction based on the number of years you draw your benefits before normal retirement age (NRA). Once payment of the reduced benefits has commenced, there will be no opportunity to restore the pension award to the full value in the future.

For illustrative purposes, reduction factors currently applying at various stages are shown below:

So, if you draw your pension 3 years early at age 57 (if your normal retirement age is 60), the pension and lump sum you receive would be 0.875 of the value of your preserved pension benefits you would receive if you take the benefits at age 60.

Pensions on early retirement receive annual increases in the same way as increases apply after normal retirement.

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.

What if I have to retire early owing to ill-health?

Your United Kingdom Atomic Energy Authority pension scheme benefits (see the 'Age Retirement' question above) may be paid to you before your normal retirement age if you develop a medical condition which the scheme medical advisers confirm will stop you from being able to work again during the period up to your normal retirement age. There is a process which is strictly applied and includes criteria which must be met in full before ill-health retirement with early payment of pension benefits can be approved.

If you wish to discuss the ill-health retirement process, you should contact your Human Resources/Personnel Manager, who will be able to let you have details of the strict criteria under which an ill-health retirement can be granted.

If you are a deferred member of the scheme, please contact the administrators to discuss and obtain the relevant application forms.

If I am retired early on grounds of ill health will I receive any enhancement to my pension scheme service?

If your employer and the Pension Scheme managers agree that ill health retirement benefits under the scheme can be paid, we will increase your service on which your pension benefits are calculated. The amount of the increase in service and therefore the pension benefits from the scheme will vary depending on your age and your scheme service and whether you have a permanent or fixed term contract. For example if you have 5 or more years of scheme service (or you have purchased Earlier Qualifications for Benefits) your scheme service will be increased.

If you have a fixed term contract and are medically retired from the United Kingdom Atomic Energy Authority pension scheme, you will receive enhanced service to the end of your appointment.

Where service is increased under the scheme rules you will be required to pay a contribution to provide for a pension for your spouse in respect of the increased service. This amount is deducted from your retirement lump sum.

What benefits will I receive on ill-health retirement and what amount of increased service will I be awarded?

The following two tables provide details of the benefits available from the United Kingdom Atomic Energy Authority pension scheme. If your employer has separate arrangements for the payment of extra benefits for ill-health retirement you should speak to your employer.

Table 1 Qualifying for Benefits

If you have purchased Earlier Qualifications for Benefits you will be treated as if you have 5 Years qualifying service for ill health retirement benefits

Table 2 Increase in Service

Would my pension be increased?

Ill health retirement pensions receive the same percentage increase as other United Kingdom Atomic Energy Authority scheme pensions. See Pensions Increases for more details.

What if I am a member of the AVC Scheme or Shift Pay Pension Plan and I am medically retired?

As a member of the AVC Scheme or the Shift Pay Pension Plan you would be able to receive the benefits from these arrangements at the time you receive ill-health retirement benefits from the United Kingdom Atomic Energy Authority final salary scheme.

Can I take the whole of my ill health retirement benefit as a pension lump sum?

Normally the benefit payable is a pension and lump sum. The United Kingdom Atomic Energy Authority scheme guarantees to pay 5 years’ worth of pension including the value of the lump payment. In cases of serious ill health (where your doctor confirms that your life expectancy is likely to be less than 12 months) you can choose instead to receive a lump sum payment equal to 5 times the value of the annual ill-health retirement pension less an amount equal to the ill health retirement lump sum and, where appropriate, the amount of any guaranteed minimum pension (GMP) payment. If you qualify and choose to receive this exceptional payment you would forego your entitlement to a pension from the scheme.

The Guaranteed Minimum Pension (GMP) referred to is the amount of pension which we must pay and is based on service between 6 April 1978 and 5 April 1997 when the United Kingdom Atomic Energy Authority scheme was contracted out of the State Second Pension (S2P).

What if I die with less than two years and I have not purchased earlier qualification for benefits?

If you die with less than 2 years’ service your widow(er) will receive a short term pension equal to your final earnings at the date of death for a period of at least three months and this period may be increased if you have children who are under the age of 17, or who are undertaking appropriate full-time education or training but not normally after the age of 23.

No annual spouse or children’s pensions will be payable in these circumstances, and pension payments will cease at the end of the short term pension payment period.

What benefits do my dependants receive if I die in service?

If as a contributing member of the scheme you should happen to die in service then, regardless of the length of your service, your nominee(s) or, if you have not made a nomination, your legal representatives may receive a tax free lump sum of twice final earnings.

Who will receive the lump sum payment?

If you have completed a Nomination for Death Benefit form, and the nomination is valid, the benefit will normally be paid to that person. You should make sure that your nomination is up to date and reflects your wishes for the distribution of the lump sum payment.

If you have not already done so you are strongly advised to complete a Nomination for Death Benefit Form. Click here to access a form and details about nominations.

Spouse and Children's Pensions if you have more than 2 years of service, or less than 2 years of service but you have purchased earlier qualification for death and ill-health benefits

According to your length of scheme service, in addition to the lump sum payment, your spouse and children may be eligible to receive pension payments.

If you should happen to die with 2 or more years service, or less than 2 years of service but you have purchased earlier qualification for benefits in the event of ill-health retirement or death, a pension is provided for your widow(er) for life or until remarriage or cohabitation.

Spouse's Short Term Pension

A pension equal to your final earnings at the time of your death will be paid for at least the first three months.

Spouse's Long Term Pension

The short term pension is followed by an annual pension normally equal to at least half the pension you would have received if you had retired on ill-health grounds on the date of your death.

For historical reasons the pension paid to your spouse may be less than half of your pension. For example female members who began scheme service before April 1988 and have not elected to include the pre 1988 service for the spouse pension will have provided for less than half of their pension.

Children's Pensions

Who is eligible to receive children's pensions?

Children’s pensions are payable to children under 17 years of age. A child’s pension may be payable after age 17 up to age 23 provided the child is in full-time education or, in certain circumstances, undergoing full-time training for a trade or profession, where their remuneration is not above a maximum allowable value. Where the member died in employment or retired after 5^th April 2006, a child is no longer eligible when they reach age 23.

It is a requirement of the scheme that children's pensions in payment beyond the age of 17 are reviewed annually and a certificate confirming continued entitlement is obtained.

Do I have to be the parent of the child for them to receive benefits from the United Kingdom Atomic Energy Authority pension scheme?

Normally the pension would be payable to the children of the deceased member. However, there is provision in the pension scheme rules for children’s pensions to be paid to certain children that are related to and who were financially dependent upon the member prior to their death.

Pension Payments

In practice the pension payments in respect of young children are paid to the member’s widow/widower or the child’s guardian. In respect of older children, who have their own bank accounts, the pension payments are made directly to the child.

How much do the children receive from the scheme?

If the spouse has care of the eligible children, their pensions will be payable from the date on which the widow(er)’s annual pension starts and will be equal to a quarter of the ill health pension to which you would have been entitled for each of the eldest two children at any one time, making a total of a half of your ill health pension payable in respect of any two children. If you have eligible children who are not in the care of your spouse, pensions may be payable for them but different limits may then apply.

What happens when the children are no longer eligible to receive a pension?

Each child’s pension is treated separately and when each child that receives a United Kingdom Atomic Energy Authority pension completes their full time education or ceases to be eligible the Scheme Administrators should be told immediately to avoid the need to recover overpayments.

If you die after leaving the Scheme, but before your preserved pension comes into payment, a Death Benefit Lump Sum equal to the value of your preserved lump sum may be made to your beneficiary.

In addition your widow(er) will normally receive an immediate pension, normally at least half the current value of your own preserved pension. A child's pension, if applicable, will be payable from the day after your death.

Who will receive the lump sum payment?

If the scheme administrators hold a valid Nomination for Death Benefit form the benefit may be paid to that person. You should make sure that your nomination is up to date and reflects your wishes for the distribution of the lump sum payment.

If you have not already done so you are strongly advised to complete a Nomination for Death Benefit Form. Click here to access a form and details about nominations.

What will my spouse receive?

For the first three months your spouse’s pension will normally be at the rate equal to your pension. For some members who retired from the United Kingdom Atomic Energy Authority pension schemes a long time ago different arrangements may apply regarding this short term spouse pension.

Will my spouse receive an annual pension?

If you die after the pension has become payable, your spouse will receive a pension for life normally at least half the rate of your pension, unless they remarry or cohabit with another person.

For historical reasons the pension paid to your spouse may be less than half of your pension. For example female members who began scheme service before April 1988 and have not elected to include the pre 1988 service for the spouse pension will have provided for less than half of their pension.

What if I married or remarried after I retired?

If your current marriage took place after your retirement, the widow's pension will be based on scheme service after 6 April 1978 (or 6 April 1988 for a widower's pension) or date of entry to the Scheme, if later.

Children's Pensions

Who is eligible to receive children's pensions?

Children’s pensions are payable to children under 17 years of age. A child’s pension may be payable after age 17 up to age 23 provided the child is in full-time education or, in certain circumstances, undergoing full-time training for a trade or profession, where their remuneration is not above a maximum allowable value. Where the member died in employment or retired after 5^th April 2006, a child is no longer eligible when they reach age 23.

It is a requirement of the scheme that children's pensions in payment beyond the age of 17 are reviewed annually and a certificate confirming continued entitlement is obtained.

Do I have to be a parent of the child for them to receive benefits from the United Kingdom Atomic Energy Authority pension scheme?

Normally the pension would be payable to the children of the deceased member. However, there is provision in the pension scheme rules for children’s pensions to be paid to certain children that are related to and who were financially dependent upon the member prior to their death.

Pension Payments

In practice the pension payments in respect of young children are paid to the member's widow/widower or the child's guardian. In respect of older children, who have their own bank accounts, the pension payments are made directly to the child.

How much do the children receive from the scheme?

If the spouse has care of the eligible children, their pensions will be payable from the date on which the widow(er)'s annual pension starts and will be equal to a quarter of your pension for each of the eldest two children at any one time, making a total of half of your pension payable in respect of any two children. If you have eligible children who are not in the care of your spouse, pensions may be payable to them but different limits may then apply.

What happens when the children are no longer eligible to receive a pension?

Each child's pension is treated separately and when each child that receives a United Kingdom Atomic Energy Authority pension completes their full time education or ceases to be eligible the scheme administrators should be told immediately to avoid the need to recover overpayments.

Supplementary Lump Sum

If you die shortly after retirement a supplementary lump sum may normally be paid equal to 5 years' worth of your pension less the pension payments you have already received and the lump sum previously paid to you. This does not affect entitlement to a widow's pension.

All pensions payable from the United Kingdom Atomic Energy Authority pension schemes keep pace with inflation. Presently increases are applied annually in April in line with the rise in the Consumer Prices Index (CPI).

For further information about Pension Increases click here

If you leave your job before retirement, there are several options open to you depending on your length of scheme service:

Refund of Contributions

If you have less than 2 years’ qualifying service you may choose to take a refund of the basic contributions you have made to the Scheme or you may request an estimate of the transfer value which could be paid to a new pension arrangement. The option to take a refund of contributions is only available if you have less than a total of two year's qualifying service in the scheme, including service transferred from another occupational pension scheme, and have not transfererd in benefits from a Stakeholder or personal pension arrangement. If you choose to have a refund of contributions, the refund you receive will be your contributions (plus compound interest) less 20% tax deduction (because your initial contributions attracted tax relief).

Transfer of Benefits to another pension arrangement

If you have more than three months service in the UKAEA scheme you may be able to transfer your scheme benefits to another defined benefit scheme provided they do not offer flexible benefits described in the Pension Schemes Act 2015. You will not be able to transfer benefits to a pension arrangement which offer flexible benefits. Generally these include defined contribution arrangements.

The restrictions do not apply if you have more than 3 months service but less than 2 years. In these circumstances you may be able to transfer your benefits to another pension arrangement including a defined contribution arrangement.

If in doubt please consult with the Pension Administrators

Preserved Benefits in the United Kingdom Atomic Energy Authority pension scheme

If you have two of more years of scheme service you can choose to preserve your lump sum and pension benefits in the United Kingdom Atomic Energy Authority pension scheme. These will become payable when you reach scheme pension age, and will be calculated in the same way as for normal retirement but based on your final earnings and scheme service at the date you leave. Your preserved benefits would therefore be:

Pension

1/80 X final earnings X scheme service

and

Lump Sum

3/80 X final earnings X scheme service

Your can choose to take a higher lump sum in exchange for a lower pension.  Please click here for details. 

You can choose to receive a higher pension in exchange for a lower lump sum. Please contact your employee representative or the pension administrators for further information. 

If you owe amounts for example because of options which you have taken during your scheme service these will be deducted from your preserved lump sum.  You may choose to take a higher lump sum and a lower pension than the standard benefits described above.

If you need any further information about amounts you can receive or which you may owe to the scheme, please contact your employee representative or the scheme administrators.

Preserved benefits attract the same increases as pensions in payment and therefore increase in value while they are preserved.

Early payment of preserved benefits in the case of ill-health

If you have been awarded a preserved pension and preserved lump sum and you fall ill before reaching pension age your pension benefits may be paid immediately, providing the scheme medical advisers confirm that your medical condition would have led to your retirement on medical grounds had you still been in the service of your former employer.

There is a process which is strictly applied and includes criteria which must be met in full before early payment of preserved benefits on ill-health grounds can be approved.

Early payment of preserved benefits in certain personal circumstances

The Authority may, at their discretion, bring your preserved pension and preserved lump sum into payment (separately or together) if you are over age 50, and there are personal circumstances which prevent you from seeking work.

Members receive tax relief on the following benefits payable from the UKAEA pension scheme:

 - retirement lump sum

 - death benefit lump sums

 - member’s contributions to a United Kingdom Atomic Energy Authority pension arrangement (i.e. the final    salary scheme, AVC Scheme or Shift Pay Pension Plan) receive tax relief.  There is a limit on the contributions you can make to the UKAEA CPS/PNISS of 15% of pensionable earnings. Different limits apply to the AVC and SPPP arrangements.

Pensions are treated as earned income and are therefore taxed under the PAYE system. If you have any queries regarding the tax on your UK Atomic Energy Authority pension, you should contact the HM Revenue and Customs office using the details on the contacts page, quoting the reference number 475/FB90592 and your own personal National Insurance Number. The scheme administrators must deduct tax from your pension in accordance with the tax code supplied by HM Inspector of Taxes.

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 be given two single awards.

You will receive an annual statement giving details of your benefits under the United Kingdom Atomic Energy Authority final salary pension scheme by the end of August each year. You should note that the statements contain important information and should be read carefully. If you have any queries on the statements you should contact your employee representative or the scheme administrators.

AVC Scheme and Shift Pay Pension Plan

If you are a member of the AVC Scheme or the Shift Pay Pension Plan, Prudential produce a statement each year showing the fund value details which will be sent to you along with your United Kingdom Atomic Energy Authority final salary scheme statement.

Will I receive a state pension in addition to my United Kingdom Atomic Energy Authority scheme pension?

Depending on your employment history you may be eligible to receive a pension from the Department for Work and Pensions when you reach state pension age.

For further details please refer to the Government advice here:

https://www.gov.uk/new-state-pension

You can check you state pension entitlement here:

https://www.gov.uk/check-state-pension

Guaranteed Minimum Pension (GMP)

The UKAEA Pension Schemes were contracted out of the State Earnings Related Pension Scheme (SERPS) prior to 6 April 2016. If you were a member of the Civil Service Pension Scheme between 6 April 1978 and 5 April 1997, GMP is the minimum amount that the scheme must provide for you at State Pension age (SPA).