Pensioners
What happens when I retire?
If you are receiving your pension benefits, it is useful to know how your pension is paid, how tax is deducted, how increases may be applied over time and how to inform us of any changes to your circumstances.
The Group’s normal pension ages are 60 if you joined the scheme before 1 April 1988 or 63 if you joined on, or after, 1 April 1988.
Your pension
When you retire, you will receive a pension and a cash sum.
You will receive your pension – along with a cash sum worth three times that yearly pension amount – at normal retirement age.
Your pension will be 1/80 of your pensionable salary for each year of Group service, up to a limit of 40 years.
Your Group service will include any service credits you have from transferring in benefits, as well as any added years bought with extra contributions.
Your pension will increase every year in line with inflation, as measured on the Retail Prices Index (RPI). Drax may decide to limit the increase to 5% in any year when the inflation rate is higher than that.
Cash sum
You will also receive a cash sum of three times your yearly pension amount. This sum is tax-free.
Early retirement
You can generally retire early from age 55 onwards. Your pension would be worked out in the same way, using your pensionable salary and Group service at the date you retire.
In most cases, the pension amount would be reduced to allow for early payment, depending on circumstances.
Any questions?
If you need help, email enquiries@railpen.com or telephone the helpline on 02476 472 895.
Pension payment dates
Pensions are paid in advance on 24th of each month. If this falls on a weekend or bank holiday, your pension will be paid on the working day before.
Annual pension increase
Your pension will increase on April 1 every year. As it is paid in advance, your first instalment of increased pension will be paid on or around March 24.
Pension tax office details
HM Revenue & Customs
Pay As You Earn
PO Box 1000
Newcastle Upon Tyne
NE98 1WY
District/ref: 475/YA82069
Telephone: 0845 3000 627
Contact HR or pensions administrator Railpen if you have any queries about your pension.
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