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<h5><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">What is Pension Credit?</span></h5><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Pension Credit is a means-tested benefit from the government to help people over State Pension age who are living on a low income. It can top up your weekly income and help with day-to-day costs.</span></div><div><br></div><div>Even if you’re still working, you may be able to claim Pension Credit.&nbsp;</div><div><br></div><div>If you only get a small amount of Pension Credit, you may be able to get other support to help with day-to-day living costs. This can include Council Tax, housing costs, NHS services, and heating bills. If you’re over 75, you could be entitled to a free TV license.</div><div><br></div><div>Many people who could claim Pension Credit do not realise they are entitled to it. That means there’s around 910,000 pensioner households missing out on Pension Credit, with the average award worth £4,300 a year.</div><div><br></div><p><strong>Myth-busting: Pension Credit isn't a pension</strong><br>Pension Credit is a government benefit. It isn't part of your workplace pension or State Pension. You don't have to have paid into a pension to check whether you can get Pension Credit.</p><div><br></div><h5>How does Pension Credit work?</h5><div><p>Pension Credit comes in two parts.</p></div><div><strong>Guarantee Credit</strong></div><div><br></div><div>Guarantee Credit helps people whose income is low. It tops up your weekly income to a minimum amount set by the government. This is the main part of Pension Credit and is what most people mean when they talk about claiming Pension Credit.</div><div><br></div><div>From April 2026, it can top your income up to*:</div><div>• £238.00 a week if you're single</div><div>• £363.25 a week if you're part of a couple</div><div><br></div><div><strong>Savings Credit</strong></div><div><br></div><div>Savings Credit is an extra payment for some older pensioners. It gives you up to £17.96 a week if you're single, and up to £20.10 if you're part of a couple*.</div><div><br></div><div>It’s designed for those who saved some money for when they stopped working, such as through a workplace pension, personal pension or other savings. You can only get Savings Credit if you reached State Pension age before 6 April 2016.</div><div><br></div><h5>Do I need to understand the difference?</h5><div>No. When you apply for Pension Credit, the government will work out whether you're entitled to Guarantee Credit, Savings Credit, or both.</div><div><br></div><h5>Who is eligible for Pension Credit?</h5><ul><li>To claim Pension Credit, you must:</li><li>Have reached State Pension age</li><li>Live in England, Scotland or Wales</li><li>Have a weekly income below £238 if you're single, or £363.25 if you're in a couple. This can be slightly higher if you claim a disability-related benefit or have caring responsibilities</li><li>If you’re in a couple, you must both have reached State Pension age</li></ul><div>Your State Pension age will depend on when you were born. <a href="https://www.gov.uk/state-pension-age" target="_blank" data-sf-ec-immutable="">Use the Gov.uk website to check your State Pension age.</a></div><div><br></div><div>To claim Savings Credit, you must:</div><ul><li>Have reached 65 if you're a man, and 63 if you're a woman, before 6 April 2016 – the State Pension ages back then (for new claims only)</li><li>Have a weekly income above £208.07 if you're single, or £329.75 if you're in a couple</li></ul><div><br></div><h5>How to apply for Pension Credit</h5><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you want to find out how much Pension Credit you could get before you apply, you can use the <a href="https://www.gov.uk/pension-credit-calculator" target="_blank" data-sf-ec-immutable="">Pension Credit Calculator</a>.</span></div><div><br></div><div>Then visit Gov.uk to <a href="https://www.gov.uk/pension-credit/how-to-claim" target="_blank" data-sf-ec-immutable="">apply for Pension Credit</a>.</div><div><br></div><div>For your application for Pension Credit, the government will consider your income. If you have a partner, their income will also be included.&nbsp;</div><div><br></div><div>Income includes:</div><div>• Any workplace or personal pensions you have, including pensions you have not claimed yet</div><div>• Your State Pension</div><div>• Your earnings from employment or self-employment</div><div>• Most social security benefits</div><div><br></div><div>The government will also consider your savings and investments.</div><div><br></div><div>Using this information, the government will then calculate the amount of Pension Credit you will be able to get.</div><div><br></div><div>You can apply for Pension Credit up to four months before you reach State Pension age, and any time after. It’s worth bearing in mind that if you are eligible for Pension Credit it can only be backdated by up to three months.&nbsp;</div><div><br></div><div>For more guidance on how to apply, <a href="https://www.gov.uk/pension-credit/eligibility" target="_blank" data-sf-ec-immutable="">visit Gov.uk</a>.&nbsp;</div><div><br></div><div><em>*Figures are correct as of August 2026 but may change. To check the latest figures, visit <a href="https://www.gov.uk/pension-credit/eligibility" target="_blank" data-sf-ec-immutable="">Pension Credit: Eligibility - GOV.UK (www.gov.uk)</a> or </em><a href="https://www.gov.uk/pension-credit/what-youll-get" target="_blank"><em>Pension Credit: What you'll get - GOV.UK (www.gov.uk)</em></a>.</div><div><br></div>

<div>In our previous blogs, we've explained <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/04/01/railpen---investing-your-pension-for-the-future">how your pension is supported by investments</a> and <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/07/22/managing-risk-and-uncertainty-when-we-invest-your-pension">how Railpen manages long-term risks and uncertainty</a>.</div><div><br></div><div>But looking after members' pensions on behalf of the Trustee is about more than choosing investments well.&nbsp;</div><div><br></div><div>Railpen’s position as a long-term investor means it can work with the companies it invests in in several ways. This includes using its voting rights and working alongside other investors to help manage risks and support better financial outcomes for members over time..</div><div><br></div><h5>Looking after investments over the long term&nbsp;</h5><div>Investing doesn't stop once an investment has been made.</div><div><br></div><div>Railpen regularly reviews its investments and keeps an eye on issues that could affect their long-term value. This includes understanding how companies are run, how they manage important risks, how they respond to changes in the law, and whether they are making decisions that support long-term financial performance.</div><div><br></div><div>This activity is often known as stewardship. In simple terms, it means taking an active interest in the companies Railpen invests in, rather than simply holding investments and leaving them alone.</div><div><br></div><h5>Using our influence as an investor&nbsp;</h5><div>As part of this approach, Railpen works closely with the companies it invests in.</div><div><br></div><div>This can include talking to companies about how they manage risks, plan for the future and respond to issues that could affect their long-term performance.</div><div><br></div><div>The aim is not for Railpen to run the companies it invests in, but to encourage good decision making that supports long-term value for investors, including pension schemes like ours.</div><div><br></div><div>Owning shares in a company often also gives investors the chance to vote on important decisions.</div><div><br></div><div>Railpen uses these voting rights, where appropriate, to help hold companies to account and encourage good decision making. This helps protect members’ long-term interests.</div><div><br></div><h5>Why being a well-run company matters&nbsp;</h5><div>Well-run companies are often better placed to manage risks, adapt to change and grow over the long term. This can affect how investments perform over time.</div><div><br></div><div>That is why Railpen pays close attention to how companies are governed, including how decisions are made and how leaders are held accountable for those decisions.</div><div><br></div><div>Encouraging good standards across the companies Railpen invests in can help protect individual investments and support more stable markets over the long term.</div><div><br></div><h5>Working with others on bigger issues</h5><div>Some risks cannot be addressed by a single investor acting alone. Issues such as climate change and norms and rules about how companies are run often affect many companies and markets at the same time. In these cases, investors can often achieve more by working together.</div><div><br></div><div>For example, Railpen chairs the UK-focused <a data-sf-ec-immutable="" target="_blank" href="https://www.railpen.com/insights/our-thinking/2025/governance-for-growth-investor-campaign-ggic/">Governance for Growth Investor Campaign (GGIC)</a>, which brings together UK pension schemes to support good corporate governance, long-term growth and the interests of pension savers.</div><div><br></div><div>Railpen also co-founded and chairs the global <a data-sf-ec-immutable="" target="_blank" href="https://www.icevequalvotes.org/">Investor Coalition for Equal Votes (ICEV)</a>, which supports the idea that investors' voting rights should fairly reflect the shares they own. This helps to make sure company leaders remain accountable to all of their investors.</div><div><br></div><div>By working with other investors and organisations in this way, Railpen can have a stronger voice on issues that may affect members’ pensions over the long term.&nbsp;</div><div><br></div><h5>Considering long-term risks and opportunities</h5><div>When making investment decisions and monitoring investments, Railpen also considers a range of wider issues that could affect long-term outcomes.</div><div><br></div><div>These can include environmental issues, changes in law and regulation, how companies treat their workforce and how companies are run. These are sometimes called environmental, social and governance (ESG) factors. Railpen considers them where evidence shows they can affect the long-term risks and opportunities linked to an investment</div><div><br></div><div>As we explained in <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/07/22/managing-risk-and-uncertainty-when-we-invest-your-pension">our previous blog</a>, climate change is one example of a long-term risk that can affect investments, businesses, economies and livelihoods around the world.</div><div><br></div><h5>Where to find out more&nbsp;</h5><div>Every year, Railpen publishes a Stewardship Report, which explains more about how it works with companies, uses its voting rights and works with others to support long-term outcomes for members.</div><div><br></div><div>Later this summer, we will publish a shorter, member-friendly version called the Sustainable Ownership Member Review.&nbsp;</div><div><br></div><div>You can also:</div><ul><li>read our earlier blog: <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/04/01/railpen---investing-your-pension-for-the-future">Railpen - investing your pension for the future</a></li><li>read our blog on <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2026/07/22/managing-risk-and-uncertainty-when-we-invest-your-pension">managing risks and uncertainty when we invest your pension</a></li><li>visit the <a href="/knowledge-hub/investments">Investments section of the website</a> to learn more about Railpen's approach to investing<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></li><li><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">visit the <a href="/knowledge-hub/investments/sustainable-ownership">Sustainable Ownership page</a> to discover more about sustainable ownership and ESG issues</span></li><li>check out our other <a href="/knowledge-hub/investments/so-blogs">sustainable ownership blogs</a>&nbsp;</li></ul>

<div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Now you’re past your 20s, you’re probably more settled and have an idea of how you want to live, what matters most to you and what your priorities are for the foreseeable future.</span></div><div><br></div><div>In your 30s, you may have changed jobs and moved up the career ladder. You could also have a family to care for, childcare costs to pay, holidays to fund and many more financial demands to meet. Understandably, your money may feel stretched, and you may start looking for ways to cut back on your spending. Although a temporary pause on your pension payments may seem like a good way to give your bank account a breather, it’s important to think carefully before you make that decision.</div><div><br></div><div>Here’s why staying focused on your retirement goal and keeping up your saving journey, even during times of financial strain, could be one of the best things you can do for your future and your loved ones.</div><div>&nbsp;</div><h5>You’re not saving alone</h5><div>One of the most valuable benefits of saving for the future with the Railways Pension Scheme (RPS) is the fact that you’re not saving alone. Your employer puts money in too. If you’re a Defined Benefit member, your employer will pay in at least 60% of the money you put in (normally 1.5 times the contribution you make). For example, if you earn £25,000 a year and you pay in £3,000 towards your pension, your employer will top that amount up by £4,500 for free.</div><div><br></div><div>What’s more, you also get support from the government for saving into a workplace pension. This support comes in the form of tax relief on your pension contributions. The money you pay in is taken from your salary before you pay any tax on it, which helps you save more towards your pension.</div><div><br></div><div>So, for a basic-rate taxpayer, every £100 paid into a pension means the full £100 is invested for your future. If that money had been paid as salary instead, you would usually have received only £80 after tax. By saving into your pension, the £20 that would otherwise have been paid in tax is invested for you instead.</div><div><br></div><div>That’s why it’s important you think carefully before making any decisions about reducing or stopping your pension payments, as it could mean missing out on valuable money from your employer and tax relief.</div><div><br></div><div><a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/news-and-views/blog/rps-blog/2023/04/26/tax-relief-and-tax-allowances-explained">Find out more about tax-free relief here.</a></div><div>&nbsp;</div><h5>Will your State Pension be enough to give you a good life in retirement?</h5><div>As much as we’d like to think of retirement as the golden time of our lives when for once we don’t have to worry about work and have the freedom to travel, take up new hobbies and enjoy life, we know that in reality the lifestyle we have in later life will largely depend on what income or savings we have.&nbsp;</div><div><br></div><div>If you are planning to rely heavily on the State Pension, will it give you the lifestyle you want at retirement? It’s a great supplement to your retirement income, but the current State Pension is around £12,500 a year. Will that be enough? For comparison, someone working 40 hours a week on the National Living Wage would earn around £26,400 a year, a difference of almost £14,000 a year. And, under current legislation, most people will not be able to claim their State Pension until their late 60s.</div><div><br></div><div>If we save towards our future while we are in work, we are much more likely to have the retirement we hope for.</div><div>&nbsp;</div><h5>Don’t interrupt the art of compounding</h5><div>Your pension is invested to give you an income when your working days are over. The longer you keep it invested, the more chance it has to grow. Sometimes, it may benefit not only from investment growth, but also from further growth on that growth. This process is known as compounding, and we explain it in more detail our <a href="/knowledge-hub/news-and-views/blogs/rps-blog/2023/06/19/pension-planning-your-20s---making-the-most-of-a-pension-plan-when-you're-young">‘Pension planning in your 20s’ article</a>.</div><div><br></div><div>Interrupting the investment process by stopping your pension payments would throw a massive spanner in the works. This is because it would affect the compounding that happens while you’re regularly investing into your pension. This on its turn means that you could potentially miss out on significant sums of money in the long run – after 20, 30 years.</div><div><br></div><div>The compounding effect only applies to members who have some or all of their pension money invested such as members of the Industry-Wide Defined Contribution (IWDC) section and members who pay in Additional Voluntary Contributions (AVCs) such as BRASS. Compounding has no impact on Defined Benefit (DB) only members but if you stop paying into your DB pension that will impact what you have to live on when your working days are over. What is more, you may not be able to re-join the DB section in the future.</div><div>&nbsp;</div><h5>Once you’ve stopped paying in, you may not start again</h5><div>Humans are creatures of habit and routine. It can be hard to go back to saving after you’ve had a flavour of having that extra bit of money in your pocket every month.</div><div><br></div><div>And as pointed above, if you leave the RPS, you may not be able to re-join again.</div><div><br></div><div>Think of your pension as one of your last options not your first when looking at where you can cut costs. To help our members think about their broader financial wellness we have introduced a simple planning tool called MoneyFit which you can access when you log into your <a data-sf-ec-immutable="" href="https://member.railwayspensions.co.uk/my-rps">myRPS account</a>.</div><div><br></div><div><a data-sf-ec-immutable="" href="https://www.moneyfit.co.uk/app/railpen">MoneyFit</a> is designed to give you some simple hints and tips to help you manage your money. It’s totally anonymous and takes around 5-10 minutes to use.</div><div>&nbsp;</div><h5>Have a plan! If you don’t have one, make one!</h5><div>By failing to prepare, you are preparing to fail as the saying goes. The same goes for retirement planning.</div><div><br></div><div>Even if you’re left with no other option but to cut back on your pension saving, this may not mean leaving the Scheme completely but pausing your Additional Voluntary Contributions (AVCs) for a little while.</div><div><br></div><div>So as an example, you may choose to pause your £50 monthly BRASS contributions for a while. This might be a good option for you if it means you can stay in the Scheme and can continue to save towards your pension. Or if you feel you have to leave pension saving behind for the time being, it’s always worth getting back to it when you’re more financially stable and can afford to save for later life.</div><div><br></div><div>The important thing is that you plan ahead, understand what you might need in retirement and ensure you are saving enough, without putting your broader financial wellness at risk.</div><div><br></div><div>Leaving the Scheme rather than pausing any extra payments you’re currently making could significantly impact your lifestyle in the future. It means you’ll have less to live on when your working days are over. For some, this also means they won’t be able to afford to retire when they want to and will be pushed to continue to work for longer.</div><div><br></div><div>To get an idea of how much income you might need to enjoy the lifestyle you hope for, give our <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator">Retirement Budgeting Calculator</a> a go. It’s a quick and easy tool to help you estimate if you’re saving enough for later life.</div><div><br></div>

<div></div><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your 40s can be a good time to review your pension savings. You may have more financial commitments than before, but you may also have more earning power and a clearer idea of what you want later life to look like.</span></div><div><br></div><div>If that’s the case for you, now may be the time to up your saving game and to prioritise your pension over all other things your money could be going towards.</div><div><br></div><div>Here are a few thoughts around pension saving in your 40s that could help you stay focused on your journey and make the most out of perhaps the most financially rewarding time of your career.</div><div>&nbsp;</div><h4>Prioritising saving for later life</h4><div>Recent research by Standard Life*, which sampled UK adults aged 18 to 80, highlights a clear gap between concern and action. While 53% of UK adults worry they aren’t saving enough for retirement, only 15% say it’s a top financial priority. At the same time, around one in three people haven’t worked out how much they’ll need. Without a clear plan, it can be difficult to turn expectations into reality. Taking a few minutes now to check your pension and what you’re on track to receive can help you feel more confident about your future.</div><div><br></div><div>Now you’ve got a few financial milestones behind you and have a bit more freedom to fund your own wants and needs, why not think about your future self and make the most of the saving opportunities you have?&nbsp;</div><div><br></div><div>You can borrow for many things, but not for retirement. If you can afford to invest more in your pension, doing so now could help you build more financial security for later life.</div><div>&nbsp;</div><div>With the Railways Pension Scheme, you can save extra towards your pension if you want to. You could do this by paying in Additional Voluntary Contributions (AVCs). AVCs are a great way to save tax-free either by giving your pension a one-off boost or making regular additional payments towards it.</div><div><br></div><div>Read more <a href="https://www.railwayspensions.co.uk/pension-essentials/saving-more" data-sf-ec-immutable="">about AVCs</a>.</div><div>&nbsp;</div><h4>Compounding is still a key factor</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Compounding is when investment growth can generate further growth over time, not just on the amount you initially paid in. It can make a real difference when saving for later life because the longer your money is invested, the more time it has to grow.</span></div><div><br></div><div>If you’ve started saving for later life in your 20s, you may have built up some sizeable pension savings by now. Thanks to compounding, those savings may continue to benefit from further growth, not only from the money you keep paying in but from the compounding effect on that money too.</div><div><br></div><div><a href="/knowledge-hub/news-and-views/blogs/rps-blog/2023/06/19/pension-planning-your-20s---making-the-most-of-a-pension-plan-when-you're-young">Read more about compounding in our previous blogs in the pension planning series.</a></div><div>&nbsp;</div><h4>Have you accumulated a few different pension pots over the years?</h4><div>You may have been saving for retirement for a couple of decades now, and it’s possible you’ve built up more than one pension pot along the way. Your 40s can be a good point in your savings journey to take stock of what you have.</div><div><br></div><div>If you think you've lost track of a pension, you may want to turn to the <a href="https://www.pensiontracingservice.com/" target="_blank" data-sf-ec-immutable="">Pension Tracing Service</a> for help. It's a free, impartial service to help find your lost pensions and then offer guidance on what to do with them.</div><div><br></div><div>You could start a pension tracker to see at a glance how your different pots are performing. If you’re unsure what to do next, you could seek independent financial advice. Go to <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">unbiased.co.uk</a> to find an independent adviser from a trusted source.&nbsp;</div><div><br></div><div>If you’ve previously worked for another employer within the rail industry and were a member of that Section of the RPS, you may be able to transfer those benefits into your new employer’s Section of the RPS.</div><div><br></div><div>However, if you’ve built up pension benefits in another pension scheme, you may not be able to transfer these into the RPS. This will depend on your employer’s policy, so you may need to discuss it with them.</div><div><br></div><div>You can find more information on transferring in your Member Guide, which is available in ‘My Library’ when you log into your <a href="https://www.railwayspensions.co.uk/my-rps" data-sf-ec-immutable="">myRPS account</a>.</div><div><br></div><div>If you haven’t really given retirement a thought yet, there’s still time to start saving and make a big difference to your financial future.</div><div><br></div><div><br></div><div><em>*<a href="https://www.standardlifeplc.com/centre-for-the-future-of-retirement/research-reports/article-page/retirement-voice-2025" target="_blank" data-sf-ec-immutable="">Retirement Voice 2025</a>, Exploring how retirement attitudes and experiences are changing by Standard Life.&nbsp;</em></div><div><br></div>

<div>By the time you reach your 50s you may have a pretty good idea of what you want later life to look like. Retirement probably doesn’t feel like a distant concept anymore, and you may be starting to give it more thought.&nbsp;</div><div><br></div><div>If you’re only just embarking on your pension saving journey, you still have a good few years to prioritise retirement planning and to save up for a decent life after work.</div><div><br></div><div>Whatever your situation, your 50s is the ideal time to up your saving game and make the most of the opportunities available to you. Here are a few ideas to help you enhance your pension saving journey and make sure your retirement savings are on track to support the lifestyle you hope for when you stop work.</div><div>&nbsp;</div><h4>Define your retirement goals</h4><div>If you haven’t yet given later life a thought, now is a good time to start. How do you imagine your lifestyle? You’d probably want to enjoy some treats now and then, like a holiday abroad, meals out&nbsp; &nbsp;taking up new hobbies. You may also need to think about whether you’ll have any caring responsibilities or want to support a family member financially.</div><div><br></div><div>Crystallising your retirement goals while you still have a few years to save may help you fund the lifestyle you want when the time comes.</div><div><br></div><div><a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">The Retirement Living Standards*</a> can help you with that. They have been developed to help you picture what kind of lifestyle you could have in retirement. The standards show you what life in retirement could look like at 3 different levels, and what a range of common goods and services would cost at each level. For example, a single person will need approximately £45,400 per year for a comfortable standard of living when they finish work.</div><div><br></div><div>If your current level of saving isn’t on target to pay for the standard of living you hope for in retirement, you may need to think about saving more. One way to do this is by paying Additional Voluntary Contributions (AVCs).</div><div>&nbsp;</div><h4>Consider boosting your savings with AVCs</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You may want to consider paying extra into your pension, if you can. Paying even a little more into your pension savings now could add up to a lot more to enjoy when you stop work. AVCs provide a real opportunity to build up your savings and make up for lost time.</span></div><div><br></div><div>The <a href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra" data-sf-ec-immutable="">main AVC arrangement for defined benefit (DB) members</a> of the Railways Pension Scheme is called BRASS. You can pay as little as £2 per week or £10 per month on top of the normal contributions you make to your pension. There’s a maximum you can pay in each year – usually 15% of your gross earnings. If you want to pay more than the BRASS maximum, you can join AVC Extra (not available to Network Rail members).</div><div><br></div><div><a href="https://www.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more" data-sf-ec-immutable="">Defined contribution (IWDC) members pay AVCs</a> directly into their investment accounts.</div><div><br></div><div>There are many benefits to saving extra with AVCs:</div><ul><li>you can save as little as £2 a week</li><li>you don’t need to save a set amount every month</li><li>you can pay into AVCs with money from overtime and bonuses, which don’t qualify for your main scheme pension</li><li>you get tax relief on what you put in, up to Annual Allowance tax limits</li><li>you don’t need to save a set amount every month</li><li>you can pay into AVCs with money from overtime and bonuses, which don’t qualify for your main scheme pension</li><li>you get tax relief on what you put in (up to Annual Allowance tax limits)</li></ul><div><br></div><div>To see how much your RPS income will be, log in to (or register for) your <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>. Use the ‘Pension Planner’ to model how saving more with BRASS could make a big difference and help you meet your target.</div><div><br></div><div>You should also bear in mind that there is an annual pension savings limit that can benefit from tax relief. For most people, this is £60,000 a year or 100% of your taxable earnings, whichever is lower. Read more about this limit below.</div><div><br></div><h4>Are you making the most of your Annual Allowance?</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Annual Allowance is the limit on the total amount you can save towards your pension in a single tax year before you pay any tax on your pension savings. It is currently either 100% of your annual earnings or £60,000, whichever is lower, unless the Tapered Annual Allowance** applies to you.</span></div><div><br></div><div>The Annual Allowance renews at the start of every tax year (in April) so it may be worth paying in as much as you can over the next few years to make sure your savings benefit from tax relief. Saving tax free for your future is one of the most valuable benefits of paying in a workplace pension and it’s worth making the most of it where you can. That doesn’t mean paying in the full allowance, but paying in as much as is realistic and affordable for you.</div><div><br></div><div>You may also be able to carry forward any unused allowances from the last three years.</div><div>&nbsp;</div><h4>Your pension savings are invested so compounding is a big plus!</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">We’ve covered <a href="/knowledge-hub/news-and-views/blogs/rps-blog/2023/06/19/pension-planning-your-20s---making-the-most-of-a-pension-plan-when-you're-young">compounding in previous articles from the pension planning series</a> but it’s worth highlighting its valuable role in making your money grow, especially as you approach the end of your working life. It’s a key factor when it comes to investing and one of the most significant benefits of having your money invested in a pension.</span></div><div><br></div><div>Compounding is the process of your investments achieving growth not just on the original sum invested but on any growth already achieved. It can be especially powerful if your money has been invested for a while, but even if you start saving for a pension now, it can still help your money grow.</div><div><br></div><div>Compounding only applies to members in the Industry-Wide Defined Contribution (IWDC) scheme and members who pay in Additional Voluntary Contributions (AVCs) towards their pension.</div><div><br></div><h4>Re-evaluate your attitude to risk</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you’ve been saving into an IWDC pot or with AVCs for a while, you may want to consider <a href="https://www.railwayspensions.co.uk/iwdc-members/managing-investments/fund-choices" data-sf-ec-immutable="">reviewing your investment fund choices</a> now you’re on&nbsp; the run-up to retirement. You may have had a riskier approach so far, but it’s perhaps time to reduce your exposure to higher risk funds to ensure you’re not taking any unnecessary risks.&nbsp;</span></div><div><br></div><div>The value of money invested can go down as well as up, so it’s important to consider whether the savings you’ve built up to date are ‘safer’ being invested in more ‘stable’ funds which have lower risk of losing value over time.</div><div><br></div><h4>Turn to Pension Wise for free guidance</h4><div><a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise" target="_blank" data-sf-ec-immutable="">Pension Wise</a>, a government-backed service helping people to understand the pension options available to them, offers free, impartial guidance for over 50s.&nbsp;</div><div><br></div><div>You can book an hour-long appointment with one of their pensions specialists. They’ll talk you through the options available to you and anything else you may need to keep in mind in the run-up to retirement.</div><div><br></div><h4>Speak to a financial adviser</h4><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You may want to seek expert financial advice if you have little or no experience of managing your pension and wider finances, or if you don’t feel confident in making decisions about them. Go to <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">https://www.unbiased.co.uk/</a> to find an Independent Financial Adviser (IFA) who could help you take control of your financial future.</span></div><div>&nbsp;</div><div><br></div><div><em>*Retirement Living Standards – the Standards have been developed by the Pensions and Lifetime Savings Association (PLSA) and provide a rule of thumb guidance on common costs for three different levels of expenditure in retirement to help pension savers understand how much money they will need to live the lifestyle they want in retirement <a href="https://www.retirementlivingstandards.org.uk/" target="_blank" data-sf-ec-immutable="">https://www.retirementlivingstandards.org.uk/</a></em></div><div><br></div><div><em>**Tapered Annual Allowance - the Tapered Annual Allowance (TAA) generally applies to those on the highest incomes. This allowance gradually reduces the amount you can save into your pension plan annually depending on your income. It may affect you if your income is over £260,000 (previously £240,000) from 6 April 2023.</em></div><div><br></div>

<div><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The money paid into the Scheme by members and employers does not simply sit in an account. It is pooled together and invested by Railpen, which looks after the railways pension schemes and manages investments on behalf of the Trustee.&nbsp;&nbsp;</span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; color: inherit; font-family: inherit">Because the value of investments can go up and down over time, a large part of Railpen’s approach is focused on managing risk and uncertainty. This supports the Trustee’s aim to pay members’ pensions securely, affordably, and sustainably.&nbsp;&nbsp;</span></p></div><div>If you are new to this topic, you may want to read our earlier blog, <a href="/knowledge-hub/news-and-views/blogs/rps-blog/2026/04/01/railpen---investing-your-pension-for-the-future">Railpen – investing your pension for the future</a>, which explains more about how your pension is invested and why it matters.&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><h4>Investing means managing uncertainty&nbsp;</h4><div>All investments involve some uncertainty. The economy changes, and longer-term issues can affect how companies and markets perform.&nbsp;</div><div><br></div><div>Railpen cannot get rid of this uncertainty completely, but it does work hard to manage key risks and protect members’ pensions over the long term.&nbsp;&nbsp;</div><div><br></div><div>One of the main ways Railpen does this is through <strong>diversification</strong>.&nbsp;&nbsp;</div><div><br></div><div>This means spreading the Scheme’s investments across different asset classes, such as company shares, bonds, and physical assets, like property or infrastructure, as well as different industries and countries, rather than relying too heavily on any one area. This helps reduce the impact if one investment performs less well, because others should help balance this out over time.&nbsp;</div><div><br></div><div>Another way Railpen manages risk is by <strong>taking a long-term view</strong>.&nbsp;&nbsp;</div><div><br></div><div>Pensions are long term by nature. Some of the railway pension schemes’ 350,000 members are already receiving their pension, while others may not retire for many years. This means Railpen can take a long-term view when investing, looking beyond short-term market changes and focussing on the issues that could affect members’ pensions in the future.&nbsp;</div><div><br></div><div>Railpen does this by taking into account a wide range of risks and uncertainties, such as inflation, market changes, and global events, as well as longer-term issues like climate change.&nbsp;</div><div><br></div><h4>Why climate change matters to your pension&nbsp;</h4><div>Climate change is not just an environmental issue. It can also affect the value of investments over time.&nbsp;</div><div><br></div><div>For pension schemes like ours, climate-related risks can affect:&nbsp;</div><div><br></div><ul><li>the companies the Scheme invests in and the value of those investments&nbsp;</li><li>the employers that support the Scheme&nbsp;</li><li>the cost of paying pensions in the future </li></ul><p>Because climate change affects so many parts of the economy, these risks cannot be avoided completely. For example, changes in law, new technologies and the shift to a lower-carbon economy can all affect different industries in different ways. More frequent extreme weather can also affect companies; infrastructure, and the goods and services they rely on.&nbsp;</p><div>This is why the Trustee, supported by Railpen, considers climate-related risks and opportunities as part of its wider approach to investing your pension.&nbsp;</div><div><br></div><div>In practice, for Railpen this means:&nbsp;&nbsp;</div><div><br></div><ul><li>taking climate-related risks into account when deciding where to invest&nbsp;</li><li>working closely with the companies they invest in on how they manage these risks&nbsp;</li><li>choosing not to invest in some areas where the risks are considered too high </li></ul><div>Railpen also looks for suitable investment opportunities linked to the move towards a lower-carbon economy, where these support the needs of the Scheme.&nbsp;</div><div>&nbsp;</div><div>For example, Railpen currently has a 50% stake in AGR Power (AGR), a leading London-based renewable energy and sustainable infrastructure developer. It has also invested more than £500 million in UK energy infrastructure projects since 2019.&nbsp;&nbsp;</div><div><br></div><div>&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The latest Taskforce on Climate-Related Financial Disclosures (TCFD) Report explains this in more detail and outlines why managing climate-related risk is an important part of acting in members’ best interests.&nbsp;&nbsp;</span></div><div><br></div><div>&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">It also shows what progress the railways pension schemes are making towards their climate targets, including halving their carbon footprint by 2030 and being net zero by 2050 or sooner.&nbsp;</span></div><div><br></div><div>&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You can read the TCFD report in full <a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/tcfd-reports/tcfd-report.pdf?sfvrsn=ef9f0be8_16">here</a> or via the <a href="/knowledge-hub/investments/investment-reports">investment reports page</a>.&nbsp;</span></div><div>&nbsp;</div><h4>Where to find out more about our investments&nbsp;</h4><div>You can:&nbsp;</div><div><br></div><ul><li>read our earlier blog, <a href="/knowledge-hub/news-and-views/blogs/rps-blog/2026/04/01/railpen---investing-your-pension-for-the-future">Railpen – investing your pension for the future</a>, to learn more about how your pension is invested&nbsp;</li><li>visit the <a href="/knowledge-hub/investments">Investments section</a> of the website for more information about Railpen’s approach to investing&nbsp;&nbsp;</li><li>read the <a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/tcfd-reports/tcfd-report.pdf?sfvrsn=ef9f0be8_16">latest TCFD report</a> for more detail on how climate-related risks and opportunities are taken into account&nbsp;&nbsp;</li></ul>

<p><strong></strong>Your pension is effectively a safeguard for the future. A way to make sure you have money to spend when you stop work.<span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span></p><p>With that in mind, it’s important you understand what your pension can do for you and how to make the most of it. That’s where a financial adviser might be able to help.<span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span></p><h3><strong>Do I HAVE to get financial advice? </strong></h3><p>There are a limited number of circumstances where getting financial advice is a legal requirement.&nbsp;For example, if the value of your DB benefits is more than £30,000 and you are looking to transfer to a scheme that provides flexible benefits e.g. a Defined Contribution or a Personal Pension Arrangement, then by law you have to get financial advice from an FCA-authorised adviser who is qualified to advise on transfers before the transfer can be made.</p><p>In most cases though, whether or not to get financial advice is entirely your choice. </p><p>Before that, you may find some of the answers you’re looking for in your Member Guide, or in the wide range of informative content available across the member website. </p><p>This includes a number of tools designed help you understand your pension and consider your options, such as:</p><ul><li>The <a href="/knowledge-hub/help-and-support/retirement-budgeting-calculator">Retirement Budgeting Calculator</a>, to help you work out how much income you might need, to enjoy the lifestyle you hope when you stop work</li><li>A retirement modeller for IWDC members and a pension planner for DB members, showing how much your pension might be worth by the time you retire. These can be found by logging in to your <a data-sf-ec-immutable="" href="https://member.railwayspensions.co.uk/login">myRPS account</a> </li><li>A range of videos in the <a data-sf-ec-immutable="" href="https://member.railwayspensions.co.uk/resources/video-library">video library</a>, covering topics such as planning and saving, tax and your retirement options</li></ul><p>As well as the tools available on this website, you may come across other online sources, including artificial intelligence (AI) tools like ChatGPT or Gemini. While these can be helpful for general guidance, they don’t replace personalised financial advice. AI can make mistakes and may give you information that’s incomplete, out of date or not relevant to your situation, so it shouldn’t be the only source you rely on when making important decisions. <br></p><p>For important financial choices, it’s always worth checking information carefully and considering financial advice from a qualified professional.</p><h3><strong>When to think about getting financial advice for your pension </strong></h3><p>Reasons for consulting a financial adviser can include getting help with:</p><ul><li>General financial planning</li><li>Tax </li><li>Deciding how to take your pension when approaching retirement </li><li>Avoiding pension scams by getting an expert opinion and/or a steer toward reputable services/products</li></ul><p>Getting advice for your pension could also be particularly useful if things in your life have changed, or if you’re considering a change of another kind. </p><p>For example: </p><ul><li>If you are starting a new pension or deciding which pension arrangements to join</li><li>If you are considering whether to transfer your pension</li><li>If you’ve recently received money, such as inheritance, or a lump sum pension pay-out and are unsure what to do with it </li><li>If your personal situation has changed, for example through divorce </li></ul><h3><strong>The benefits of getting financial advice for your pension</strong></h3><p>Getting financial advice usually means having an expert in your corner. For example, someone who can: </p><ul><li>guide you through any difficult decisions relating to your pension and recommend a way forward to suit your needs</li><li>point you towards products and options that will best match your personal circumstances and goals. And in some cases access products you wouldn’t necessarily have found on your own. </li><li>put together a plan and make sure it stays on track over the longer term, even making adjustments with your permission if necessary </li><li>help make sure you’re within the relevant tax allowances and advise on alternatives if you’re reaching them </li><li>look at ways to boost your pension</li></ul><h3><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Finding the right financial adviser for your pension</strong></h3><p>It’s important to first understand the different between guidance and advice. They may sound similar, but from a financial perspective there is an important difference. </p><p>Individuals and organisations offering financial guidance can help you understand your options and factors you may wish to consider. However, guidance does not tell you what you should do. Whereas financial advisers can actually recommend which product they think would suit you best.</p><p>Unlike guidance services, financial advisers are regulated by the Financial Conduct Authority (FCA). This means they have to agree to a certain level of standards and you can get additional support through the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.</p><p>Liverpool Victoria (LV)&nbsp;has been chosen as the official partner to give RPS members access to financial advice. </p><p>LV covers all areas of pension advice, including:</p><ul type="disc"></ul><ul><li>retirement</li><li>financial planning</li><li>transfers</li></ul><p>And has a dedicated team, with specific knowledge on the Scheme.</p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">LV can be contacted on 0800 023 4187.</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You are still free to choose your own Independent Financial Advisor (IFA). You can find an IFA in your area at&nbsp;</span> <a style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal" data-sf-ec-immutable="" target="_blank" href="https://www.unbiased.co.uk/">unbiased.co.uk</a> </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">More information about getting help and advice is also available <a href="/pension-essentials/guidance-advice">here</a><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">.&nbsp;</span></span> </p><h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Considering the cost of financial advice</strong></h3><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></strong><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Getting financial advice can be expensive.&nbsp;</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Any member who contacts LV will be evaluated for free first, to make sure that only those who truly need advice will progress to the chargeable stage. And even then, LV will offer its services at a discounted rate for RPS members.</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">If you chose to find your own independent adviser, then keep in mind that not everyone offers a free introductory session and that their charges and areas of expertise may differ. So it’s best to shop around to find the best fit.</span></p><h3><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Looking out for scams offering financial advice</strong></h3><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></strong><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Scammers sometimes pose as financial advisers, or claim to be offering financial guidance and advice, as a way of getting their hands on your pension.</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You should be particularly cautious if anyone contacts you out of the blue, or offers you a free pension review or no-obligation consultation. </span>Especially if they actively encourage you to transfer your pension or ‘unlock your benefits early before Normal Minimum Pension Age (NMPA), which is currently 55.’</p><p>Also be alert to anyone promising guaranteed returns, high investment growth or overseas investment opportunities. These are also common warning signs of pension scams.</p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">Before entering a conversation with anyone, you should check their details against the </span> <a target="_blank" data-sf-marked="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal" data-sf-ec-immutable="" href="https://register.fca.org.uk/s/">Financial Conduct Authority (FCA) register</a> <span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"> to make sure they are fully regulated and have the FCA’s permission to provide the services they’re claiming to offer.</span> </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You can also check the FCA’s </span> <a target="_blank" data-sf-marked="" style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal" data-sf-ec-immutable="" href="https://www.fca.org.uk/consumers/unauthorised-firms-individuals">warning list</a> <span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"> to see the names of companies who are known to be operating without proper authorisation.</span> </p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto"></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal; caret-color: auto">You can read more about staying safe from scams </span> <a style="font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; white-space: inherit; word-spacing: normal" data-sf-ec-immutable="" href="https://member.railwayspensions.co.uk/resources/safety-and-scams">here</a> </p>

<div></div><div><br></div><div><p>Family leave (maternity, paternity, and adoption leave), as well as part-time working or taking a career break, can ultimately impact your pension contributions and pension benefits you receive. </p><p>Here’s a straightforward guide to what you need to know. You can jump to the relevant section of the article using the links below.</p><ul><li><a href="#section1" data-sf-ec-immutable="">Types of family leave</a></li><li><a href="#section2" data-sf-ec-immutable="">Your pension during family leave</a></li><li><a href="#section3" data-sf-ec-immutable="">Working part-time</a></li><li><a href="#section4" data-sf-ec-immutable="">How to make the most of your pension with the Scheme</a><br></li></ul><h3 id="section1">Types of family leave</h3><h4><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Maternity pay and leave&nbsp;</span></h4></div><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">The following are your statutory rights, but your employer may have a different policy.&nbsp;&nbsp;</span></div><div><br></div><div>You are entitled to statutory maternity pay if you:&nbsp;</div><div><br></div><ul><li>have worked for your employer for 26 weeks when you reach the 15th week before your due date, and&nbsp;</li><li>earn on average at least £129 per week.&nbsp;</li></ul><div>You’ll be entitled to 52 weeks statutory maternity leave and receive statutory maternity pay for 39 weeks. For the first six weeks, you’ll get 90% of your average weekly earnings. For the next 33 weeks, you receive 90% of your weekly earnings, or £194.32 a week, whichever is lowest. The remaining 13 weeks are unpaid.&nbsp;&nbsp;</div><div><br></div><div>You don’t have to take the 52 weeks you’re entitled to, but you must take at least two weeks off work following the birth.&nbsp;</div><div><br></div><h4>Paternity leave&nbsp;</h4><div>Under the same rules as statutory maternity pay, you are entitled to two weeks’ statutory paternity pay. The weekly rate is £194.32 or 90% of your average weekly earnings, whichever is lower.&nbsp;</div><div><br></div><h4>Adoption leave&nbsp;</h4><div>If you’re adopting or having a child through surrogacy, you’re usually entitled to paid time off work. This is subject to the same rules and requirements (as above) for maternity pay and the pay structure is identical.&nbsp;</div><div><br></div><div>If you’re adopting as a couple, only one person can get adoption leave. The other might be able to get paternity leave or shared parental leave.&nbsp;</div><div><br></div><h4>Shared parental leave&nbsp;</h4><div>Alternatively, you and your partner may be able to get shared parental leave and statutory shared parental pay. You can share up to 50 weeks of leave and up to 37 weeks of pay between you.&nbsp;</div><div><br></div><div><h3 id="section2">Your pension during family leave &nbsp;</h3></div><div>Your pension Scheme membership will be continuous while you are off, unless you have an agreement with your employer for this to be different. Your pension contributions may change during family leave, because pension contributions are calculated using a percentage of your earnings. However, if you are in a defined benefit (DB) section of the Railways Pension Scheme, your pension benefits will not be affected. If you are in the Industry-Wide Defined Contribution (IWDC) Section, it will be affected by any reduction to the contributions paid in.&nbsp;</div><div><br></div><div>If your pay reduces to nil, then your contributions will stop and your pension benefits may be affected. Your employer may continue to pay them on your behalf, but you may have to pay these back once you return to work – you would need to arrange this directly with your employer.&nbsp;</div><div><br></div><div>While you’re on family leave, your pension benefits won’t be affected, as long as you haven’t opted out of your Scheme membership and contributions are paid. Your overall benefits will still be based on your final average pay.&nbsp;</div><div><br></div><div>For more information, check the &nbsp;<a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-for-family-leave.pdf?sfvrsn=9db485ae_12" target="_blank">family leave guide</a>.&nbsp;</div><div><br></div><h4>The gender pension gap&nbsp;</h4><div>The career breaks women take to care for their families’ amount to £39,000 in lost pension savings, according to <a href="https://www.nowpensions.com/app/uploads/2024/02/gender-pensions-gap-report-24.pdf" target="_blank" data-sf-ec-immutable="">NOW: Pensions’ 2024 gender pensions gap report</a>. This is because, in many cases, women pause their careers or go part-time to care for their children (this is sometimes known as the ‘motherhood penalty’).&nbsp;</div><div><br></div><div>The <a href="https://adviser.scottishwidows.co.uk/assets/literature/docs/61536.pdf" target="_blank" data-sf-ec-immutable="">2025 Women and Retirement report</a>, produced by Scottish Widows, shows that the median annual retirement income of UK mothers is 32% lower than men’s (£13k for women vs £19k for men), largely driven by women having longer career breaks, doing part-time work, freelancing or taking on multiple jobs. However, this means that many women might not be earning enough to pay into a private or workplace pension. People in the UK need to earn at least £10,000 a year to meet the criteria for pension &nbsp;<a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction" target="_blank" data-sf-ec-immutable="">auto enrolment</a>.&nbsp;</div><div><br></div><div>The 2024 gender pensions gap report also shows that women are far more likely to take time out of work to care for an elderly or sick family member.&nbsp;</div><div><br></div><div>What is more, the fact that they’ll have worked less years throughout their life could reduce their <a href="https://www.gov.uk/new-state-pension" target="_blank" data-sf-ec-immutable="">State Pension</a> entitlement if they do not build enough qualifying National Insurance years (although credits such as child benefit can help to protect this). To get any State Pension, people in the UK are required to have worked for a minimum of 10 qualifying years. To get the full State Pension, 35 qualifying years of work are required.&nbsp;&nbsp;</div><div><br></div><div>The 2025 Women and Retirement report also says that around half of all women have taken a career break compared with only one in five men. Around one quarter of women over 55 have spent five years or more out of the workforce, which increases the risk of not qualifying for any State Pension further down the line. You can check your <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">State Pension forecast</a> on the government’s website.&nbsp;</div><div><br></div><div><h3 id="section3">Working part-time</h3></div><div>Many parents, especially mothers, choose to work part-time to balance work and family. While this offers flexibility, it affects your pension.&nbsp;</div><div><br></div><div>If your working hours change it’s likely your wages will too. That means how much you pay into your pension may also change. The amount that you pay into your pension is worked out using your full-time rate of  <a href="https://member.railwayspensions.co.uk/knowledge-hub/help-and-support/glossary" data-sf-ec-immutable="">Section Pay</a> for your job, but is reduced for the hours you work.  &nbsp;</div><div><br></div><div>If you go part-time then you’re still entitled to the same range of benefits as your full-time colleagues. However, the amount you pay in and the amount you receive will be based on the part-time hours you work. You can find out more in the  <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-to-part-time-work166beabb5d844e31a0839a6ff1bb075b.pdf?sfvrsn=4d5472da_9" target="_blank">guide to part-time work</a>.&nbsp;</div><div><br></div><h4>The gender pay gap&nbsp;</h4><div>The gender pay gap – the difference between the earnings of men and women – is deemed one of the major drivers of the pension gap. Women have been earning (and still earn) less than men on average, although <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2025" target="_blank" data-sf-ec-immutable="">2025 figures</a> show a narrowing of this gap over time.&nbsp;&nbsp;</div><div><br></div><div>In April 2025, women earned an average of 6.9% less than men per hour, according to the ONS (down from 7.1% in April 2024).&nbsp;</div><div><br></div><div>The significant gap in income means women have less capacity to meet increasing financial demands. The 2025 Women and Retirement report, by Scottish Widows, suggests that on average, 24% of men have savings above £10,000 compared to only 16% of women. Men are also more likely to be able to draw from other long-term savings sources in retirement, with 37% of them investing in stocks and shares ISA, compared to 26% of women.&nbsp;</div><div><br></div><div>It’s not all doom and gloom for women, though. The 2024 pension gap report shows a positive tendency of more women undertaking higher education and therefore entering the workforce with higher salaries. If the trend continues, the gender pay gap is likely to reduce further over the coming years, as more young women go on higher education. This could mean better retirement outcomes too.&nbsp;</div><div><br></div><div><h3 id="section4">How to make the most of your pension with the Scheme&nbsp;</h3></div><ul><li>Make sure you register for a myRPS account so you can take advantage of all the guidance and pension planning tools available to help you prepare for retirement. <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">Register and/or log in </a>and check your account today.&nbsp;<br></li><li>Don’t forget your National Insurance (NI) credits. Many benefits, including child benefits, automatically give you NI credit. Some women don’t sign up for child benefit because if their partner earns over £50,000 they would have to start paying it back.  But you don’t need to actually receive the cash – you can just sign up to ensure your NI record and then your State Pension will be protected.&nbsp;<br></li><li>You could consider extending your working life. Your Railways Pension Scheme pension will offer you a Normal Retirement Age (NRA) but normally you can work and remain a member beyond this date. <a href="https://member.railwayspensions.co.uk/login" data-sf-ec-immutable="">Log in to your myRPS account</a> to check what your NRA is.&nbsp;<br></li><li>Putting in a small, extra regular amount now into AVCs (Additional Voluntary Contributions), could go a long way towards a better future. You can put as little as £2 extra per week. This means you make the most of the valuable tax relief you get and the longer you have your money invested, the more chance it has to grow. If you’re a DB member of the RPS, the main AVC scheme is called <a href="https://member.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/saving-more-with-BRASS" data-sf-ec-immutable="">BRASS</a>.  For IWDC members, you can <a href="https://member.railwayspensions.co.uk/iwdc-members/Im-still-working/saving-more" data-sf-ec-immutable="">save more with AVCs</a>.&nbsp;<br></li><li>If you’ve had a number of different jobs, don’t forget to check that you’ve kept track of all your past pension schemes. The Pension Tracing Service is free and can help you find a pension you’ve lost. Go to <a href="https://www.gov.uk/find-pension-contact-details" target="_blank" data-sf-ec-immutable="">gov.uk/find-pension-contact-details</a> and follow the online steps.&nbsp;</li></ul>

<div>When decisions are made that could affect your pension – whether within the railways pension schemes or through changes to law and regulation – the Trustee is there to represent you and make sure members’ voices are heard.</div><div><br></div><h5>The Trustee and its role</h5><div>The Trustee – known more formally as the Railways Pension Trustee Company Limited (RPTCL) – is the independent body with legal responsibility for running the railways pension schemes.</div><div><br></div><div>While Railpen supports the Trustee&nbsp; to look after much of the day-to-day running of the schemes and manages the schemes’ assets, the Trustee remains ultimately responsible for the schemes&nbsp; and their oversight —making sure members’ benefits are protected and the schemes are well run over the long term.</div><div><br></div><div>In doing this, the Trustee has to consider the requirements of the scheme rules and relevant laws and regulations,&nbsp; as well as regulatory codes of practice and guidance. But above all, it focuses on making decisions that it believes are best for members’ and their beneficiaries.</div><div><br></div><h5>How the Trustee is standing up for members&nbsp;</h5><div>The Trustee’s mission is to pay pensions securely, affordably and sustainably over the long term&nbsp; . That includes working with Railpen, employers and government bodies - and speaking up when changes to law or the rail industry could affect the schemes and members.</div><div><br></div><div>For example, the Trustee has been working directly with members of Parliament and the House of Lords to help make sure the government’s new Pension Schemes Bill will have a positive impact on people’s retirement, while also supporting economic growth in the UK, once it becomes law. This has already led the Pension Protection Fund (PPF) to reduce its main levy on defined benefit schemes to zero, which is reducing costs for schemes and enabling some members and employers to pay lower contributions.&nbsp;</div><div><br></div><div>The Trustee and Railpen have also worked closely with other pension schemes, industry bodies, and those in government to influence new inheritance tax laws being introduced by the Finance Act 2026. The Trustee has successfully argued for substantial changes on members’ behalf, including the exclusion of all death in service benefits from the proposed scope of the new inheritance tax measures.&nbsp;</div><div><br></div><div>Within the rail industry, the Trustee and Railpen are also working closely with the government and other industry bodies on the long-awaited creation of Great British Railways (GBR). The Railways Bill – the legislation that will set up Great British Railways - is expected to become law later this year, and for GBR to be up and running by the end of 2027. The Trustee plans to remain closely involved in this process and help shape the future of rail pensions so members’ benefits remain protected for the long term.</div><div><br></div><div>The Trustee is committed to speaking up for members on issues like this, so that the impact on rail workers’ pensions and retirements is properly considered as decisions are made.</div><div><br></div><h5>Who is part of the Trustee</h5><div>There are 16 Trustee Directors who make up the Trustee Board. Half of them are nominated by employers from across the railways pension schemes, while the other half are nominated on behalf of members by the trade unions, Police Federation, committees, and pensioner organisations.</div><div><br></div><div>Each Trustee Director brings with them a wealth of experience in the railways industry and pensions, as well as a strong commitment to putting members first.&nbsp;</div><div><br></div><div>Christine Kernoghan, who has served on the Trustee Board since 2016 and as Chair of the Board since 2022, was recently shortlisted for the Adeline Ginn Lifetime Achievement Award at the Women in Rail Awards 2026. This was in recognition of her 38-year career in rail, during which time she has transformed railway pensions and continued to advocate for railway workers in their retirement.</div><div><br></div><div>Christine said: “I feel privileged to chair the Trustee Board and care deeply about the schemes’ members. Members’ interests sit at the heart of every decision the Trustee makes.”</div><div><br></div><div>You can see a full list of the current Trustee Board members and learn more about the experience and interests on the <a href="/knowledge-hub/the-trustee/meet-the-trustee">Meet the Trustee page</a>.&nbsp;</div><div><br></div><h5>How you can get involved&nbsp;</h5><div>You can find out more about the Trustee, including its responsibilities and structure in the<a href="/knowledge-hub/the-trustee"> Trustee section</a> of this website.&nbsp;&nbsp;</div><div><br></div><div>There, you can also find out more about what it takes to be a&nbsp; member of the Trustee Board and how you can apply for a future role.</div>

<p><strong>This blog is for defined benefit (DB) members of the Railways Pension Scheme (RPS).</strong><strong></strong></p><p>From time to time, you might find yourself with a little extra money in your pay; perhaps from overtime, shift allowances, commission, backpay or other one-off payments. It’s easy for those amounts to get absorbed into everyday spending without much thought.</p><p>You could use some of that extra income to boost your pension savings.</p><p>For many defined benefit members of the <strong>Railways Pension Scheme</strong>, this can be done through <strong>BRASS. </strong>Historically short for <em>British Rail Additional Superannuation Scheme,</em> BRASS is the Railways Pension Scheme’s main Additional Voluntary Contribution (AVC) arrangement. </p><p>BRASS lets you save extra into a separate pension pot alongside your main Scheme pension, with tax advantages and flexibility built in. It isn’t entirely investment risk free, but for some members, it can be a straightforward way to turn extra earnings into longer-term retirement savings.</p><p><strong>BRASS: key facts</strong></p><ul type="disc"><li>BRASS stands for British Rail Additional Superannuation Scheme. It is the Railways Pension Scheme’s main Additional Voluntary Contribution arrangement</li><li>BRASS is available to members currently paying in to defined benefit (DB) sections of the Railways Pension Scheme</li><li>You can make regular contributions or one-off payments</li><li>Contributions receive tax relief, subject to HMRC limits</li><li>Your BRASS pot is invested, so its value can go up and down</li><li>You can choose which fund(s) to invest your BRASS pot&nbsp; in, and the level of risk you are comfortable with.</li><li>You usually take your BRASS pot at the same time as your DB pension, unless you transfer it to another pension arrangement first</li></ul><p><strong>Why some members use extra earnings to pay into BRASS</strong><strong></strong></p><p style="margin-left: 30px"><strong>1. Flexibility for irregular income</strong></p><p>BRASS is flexible. You can:</p><ul><li><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">make small regular contributions, or</span></li><li><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit"></span>pay in one-off amounts when you have extra earnings.</li></ul><p>That flexibility is one reason some members choose BRASS when their income isn’t the same every month.</p><p style="margin-left: 30px"><strong>2. Tax relief is built in</strong></p><p>BRASS contributions are taken from your pay before income tax is worked out. This is known as a net pay arrangement. It means you automatically receive tax relief on what you pay in, within HMRC limits such as the Annual Allowance.</p><p>For some members, this makes paying extra earnings into BRASS more tax efficient than taking the same amount as taxable pay.</p><p style="margin-left: 30px"><strong>3. To provide extra income in retirement</strong></p><p>Your Railways Pension Scheme benefits provide a valuable foundation for retirement income. Paying extra into BRASS can help you build an additional pension pot alongside your main Scheme benefits. When you come to take your pension benefits, your BRASS pot could be used to provide extra income or increase the lump sum you take at retirement, depending on your circumstances and the choices available at the time.</p><p style="margin-left: 30px"><strong>4. Flexibility that could support retiring earlier</strong></p><p>Some members use BRASS as part of wider retirement planning. Having an additional pension pot may give you more options around when you retire. Whether that additional pot could help you retire earlier will depend on your personal circumstances, your overall savings, and how your BRASS pot is invested and performs.</p><p style="margin-left: 30px"><strong>5. You might save on National Insurance too</strong></p><p>Some employers offer BRASS through salary sacrifice. Where this applies, you agree to give up part of your pay and your employer pays the pension contribution instead. This can reduce National Insurance contributions, so more of your pay goes into your pension.</p><p>Salary sacrifice arrangements are set by employers and don’t apply everywhere, so it’s always worth checking with your employer what’s available to you.</p><p><strong>How much can you pay into BRASS?</strong><strong></strong></p><p>If you want to work it out before speaking to your payroll or HR team, log in to your myRPS account and use the BRASS maximum calculator. The calculator helps you estimate how much you can pay into BRASS based on your pay and existing pension contributions. </p><p>Find the calculator in the ‘Planning for the future’ area of your myRPS account.</p><p><strong>What the BRASS limit is based on</strong><strong></strong></p><p>In broad terms, the maximum you can pay into BRASS is worked out using:</p><ul type="disc"><li>your earnings, and</li><li>how much you already contribute to your main Scheme pension</li><li>HMRC <a target="_blank" href="/pension-essentials/pension-tax-limits">tax</a> limits, such as the Annual Allowance, which apply to all pension savings</li></ul><p>Because pay and contributions can change during the year – especially if you work overtime or receive additional payments – your BRASS maximum can change too. That’s why you should check before making a larger or one-off contribution.</p><p><strong>If you’re paying in to BRASS regularly</strong><strong></strong></p><p>If you already pay a regular amount into BRASS, that counts towards your annual maximum. The calculator takes this into account and shows how much extra you may be able to pay in. </p><p><strong>If you want to save more than the maximum allowed for BRASS </strong><strong></strong></p><p>Some members reach their BRASS limit and still want to save more. In those cases, <a href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra/save-more-AVC-Extra" target="_blank" data-sf-ec-immutable="" data-sf-marked=""><strong>AVC Extra</strong></a> may be available. AVC Extra is a separate Additional Voluntary Contribution arrangement with its own rules and limits . AVC Extra is not available to Network Rail members.</p><p><strong>How to pay extra earnings into BRASS</strong><strong></strong></p><p>Start the process by completing the <strong>BRASS e-form</strong> once you’ve logged into your myRPS account. You can then send it to your HR or Payroll team. It will give them all the information they need to set up the contribution. If the amount you’ve asked to contribute is over your limits for paying in to BRASS, your HR or Payroll team will let you know. You may then decide to pay the excess into AVC Extra.</p><p><strong>How could your BRASS pot supplement your Railways Pension Scheme defined benefits?</strong><strong></strong></p><p>If you’d like to see how your BRASS pot could increase your pension benefits, log in to your myRPS account and use the Pension Planner to model your BRASS contributions. It will show how any one-off or regular BRASS contributions could boost your lump sum when you come to take your benefits. </p><p><strong>Manage your BRASS funds from your myRPS account</strong></p><p>Once you’ve paid into BRASS, you can manage your savings through your <strong>myRPS account</strong>. When you log in, you can see the current value of your BRASS pot, review how it’s invested, and make changes if you need to. You can choose to invest in one or more Lifestyle strategies, where your investments are managed for you, or select individual investment funds if you prefer a more hands-on approach &nbsp;– or a mix of both. You can change where your existing savings are invested, decide where future contributions go, and check how your choices are performing, all in one place. </p><p>It’s a good idea to review your BRASS funds from time to time to make sure they still feel right for you, especially as your plans or circumstances change.</p><p><strong>Consider how your extra earnings can work best for you</strong></p><p>Paying occasional extra income into BRASS won’t be right for everyone. Remember, BRASS savings are invested, so their value can go down as well as up and returns are not guaranteed. But for some members, it can be a useful way to add to pension savings, with the benefit of tax relief, flexibility and the reassurance of staying within the Scheme.</p><p>As with any pension decision, it’s worth taking the time to understand how it works and what the risks are.</p><p>To find out more about paying in to BRASS:</p><ul type="disc"><li>log in to <strong>myRPS</strong> to view your current BRASS pot value</li><li>speak to your <strong>payroll </strong>or <strong>HR team </strong>about your options</li><li>visit the <a data-sf-ec-immutable="" href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra"><strong>Saving more with BRASS</strong></a> pages to learn more</li></ul>

<div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Your pension is more than just numbers on a page – it’s your future, your plans, and your peace of mind. Railpen’s role, as administrator and investment manager of the railways pension schemes, is to help look after that future for you; by investing your contributions sustainably and making sure your pension is paid securely when you retire.&nbsp;</span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><div>In this blog you’ll learn more about what happens behind the scenes, how your money is invested, and how Railpen works every day to support the retirement you’re building.&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><h5>Who Railpen supports and how&nbsp;</h5><div>Railpen began in 1965 as the pensions office for the British Rail Pension Scheme. Today, it operates&nbsp;&nbsp;<span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">four railways pension schemes on behalf of The Railway Pensions Trustee Company Limited (RPCL).&nbsp;</span></div><div><br></div><div>These are:&nbsp;&nbsp;</div><div><br></div><ul><li>The Railways Pension Scheme (RPS) – which is still open to new members&nbsp;&nbsp;</li><li>The British Transport Police Force Superannuation Fund (BTPFSF) – which is still open to new members&nbsp;</li><li>The British Railways Superannuation Fund (BRSF) – which is closed to new members&nbsp;</li><li>BR (1974) Pension Fund – which is closed to new members </li></ul><div>Across these schemes, Railpen supports more than 350,000 active, preserved and retired members – as well 150 employers – managing assets, administration, and communications on their behalf.&nbsp;&nbsp;</div><div><br></div><div>But what does that mean in practice and how does it impact you? Read on to find out more, or watch this short video…&nbsp;</div><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div data-sf-ec-immutable="" class="-sf-relative" contenteditable="false" style="width: 560px; height: 315px"><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/dnScL5e6lhU?si=pEkm6ujaY8O2T9Kv" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox"></iframe></div></div><p>&nbsp;</p><h5>How Railpen manages your money&nbsp;&nbsp;</h5><div>Railpen manages more than £34 billion in assets, which it uses to help pay members’ pensions when they retire or otherwise leave the scheme.&nbsp;&nbsp;</div><div><br></div><div>Part of these assets come directly from the money (or ‘contributions’) that you and your employer pay in.&nbsp;&nbsp;</div><div><br></div><div>However, a much larger proportion comes from returns generated by Railpen’s award-winning investment team.  In fact, for every £1 the scheme pays out, around 75p comes from investment growth.&nbsp;&nbsp;</div><div><br></div><div>For defined benefit (DB) pensions – which includes most Sections of the Scheme – the money that members and employers pay in is pooled together and invested by Railpen. This doesn’t change how much pension you get – that’s set by the Rules of your Section. But it does help keep the Scheme strong for the future and helps to pay members’ pensions securely, affordably and sustainably.&nbsp;</div><div><br></div><h5>How does Railpen decide where to invest?&nbsp;</h5><div>Railpen follows a clear investment strategy, built around the needs of the scheme and its members.&nbsp;&nbsp;</div><div><br></div><div>For example, Railpen believes that a mix of investments delivers better long-term outcomes for members and helps to protect against ups and downs in the market.&nbsp;&nbsp;</div><div><br></div><div>In short, this means that Railpen invests your money across a wide range of companies and brands, both in the UK and further afield, which have been carefully selected to generate good financial returns over the longer-term.&nbsp;&nbsp;</div><div><br></div><div>Railpen also believes that considering a range of environmental, social and governance (ESG) factors, such as climate change and how companies are run, are essential to delivering these strong returns for members. By taking these issues into account in its investment decisions, Railpen aims to protect members’ savings, manage long- term risks and contribute positively to the world members retire into.&nbsp;</div><div><br></div><div>Railpen’s CEO, Andy Bord said:<em> “Every single decision that we take puts the members right at the centre. And every pound of profit that’s made is about securing the ability to pay their pensions affordably and sustainably, whether they’re a new starter in the railway industry today or someone that’s been serving for the last 40 years.”&nbsp;&nbsp;</em></div><div><br></div><div>We’ll be publishing a series of blogs over the coming months, putting the spotlight on some of Railpen’s current investments and what they mean for your pension, so please come back and read those soon.&nbsp;&nbsp;</div><div><br></div><div>In the meantime, you can find out more about Railpen’s approach to investing in the&nbsp;&nbsp;</div><div><a href="/knowledge-hub/investments">investment section of this website</a> and on <a data-sf-ec-immutable="" target="_blank" href="https://www.railpen.com/">Railpen's website</a>.&nbsp;</div><div><br></div><div>And in these short videos:&nbsp;&nbsp;</div><div><br></div><div data-sf-ec-immutable="" class="-sf-relative" contenteditable="false" style="width: 560px; height: 315px"><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/6iHd09WsT8U?si=h_jfvYeI197DvC6l" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox"></iframe></div></div><div><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Railpen’s investment beliefs</strong></p><p><br></p></div><div><div data-sf-ec-immutable="" class="-sf-relative" contenteditable="false" style="width: 560px; height: 315px"><div data-sf-disable-link-event=""><iframe width="560" height="315" src="https://www.youtube.com/embed/L5TAYUic9_Y?si=Ykh1aEzjBEmBn-c_" title="YouTube video player" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox"></iframe></div></div><strong>Railpen's UK investments&nbsp;</strong></div><div>&nbsp;</div><div></div><div><br></div><h5>How investments work for defined contribution (DC) pensions&nbsp;</h5><div>Investments work differently for defined contribution (DC) pensions than they do for defined benefit (DB). DC pensions include the IWDC Section and the Additional Voluntary Contributions arrangements (BRASS and AVC Extra). You can find out more about investments in DC pensions specifically on the Investing: Basics I need to know pages for <a href="/iwdc-members/managing-investments/investing--the-basics-i-need-to-know">IWDC members</a> or for <a href="/defined-benefit-members/saving-more-BRASS-AVC-Extra/the-basics-of-investments">BRASS and AVC Extra members</a>. &nbsp;</div><div><br></div><h5><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">When you might hear from Railpen&nbsp;&nbsp;</span></h5><div>As the administrator and investment manager of the railways pension schemes, Railpen is the driving force behind its day-to-day operations. This means, that even though you might contact the Railways Pension Scheme (RPS), British Transport Police Force Superannuation Fund (BTPFSF), British Railways Superannuation Fund (BRSF) or BR (1974) Pension Fund, it is ultimately the team at Railpen that will be responding to your queries and supporting you on your pensions journey.&nbsp;&nbsp;</div><div><br></div><div>They are also responsible for producing the communications that keep you up to date with your pension, such as your annual newsletter and regular e-bulletins. And for developing the scheme websites and tools that help you to manage your pension online.&nbsp;&nbsp;</div><div><br></div><div>In doing so, Railpen’s core aim is to make it as clear and easy as possible for members to get to grips with their pension, from the day they join the Scheme and throughout key life moments, in order to the get the best outcomes possible.&nbsp;&nbsp;</div><div><br></div><div>Nicola Cromack, Chief Officer for Member Services at Railpen, said:<em> “Pensions are about people and we understand the difference we can make to the lives of our members and their families. They rely on us to pay the pensions they’ve been promised and doing so is our fundamental duty, our role and our privilege.”&nbsp;</em></div><div><br></div><div><p>You can hear more from Nicola about Railpen’s member-first culture in this short video:&nbsp;</p><div style="width: 560px; height: 315px" contenteditable="false" class="-sf-relative" data-sf-ec-immutable=""><div data-sf-disable-link-event=""><iframe title="YouTube video player" src="https://www.youtube.com/embed/dnScL5e6lhU?si=pEkm6ujaY8O2T9Kv" height="315" width="560" sandbox="allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox"></iframe></div></div><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></p><p><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Railpen also works closely with employers with Sections in the Scheme to provide support and keep them fully informed of developments either within the Scheme or the wider pensions industry.&nbsp; &nbsp;</span></p></div><h5>Where to find out more&nbsp;&nbsp;</h5><div>Over the coming months, we’ll be delving deeper into how Railpen invests for your future, with blogs about its different type of assets, including some real-world examples of investments in property and stocks.&nbsp;&nbsp;</div><div><br></div><div>In the meantime, you can find out more in the following sections of your member website&nbsp;&nbsp;</div><div><br></div><ul><li><a href="/knowledge-hub/about-the-scheme">about the Scheme&nbsp;&nbsp;</a></li><li><a href="/knowledge-hub/investments">investments</a>&nbsp;</li></ul><div>And at <a data-sf-ec-immutable="" target="_blank" href="https://www.railpen.com/">railpen.com&nbsp;</a></div><div><br></div><div>You can also read more about investments and the Scheme’s assets, in a number of publications including the annual Report and Accounts and Sustainable Ownership Member Review. These can be found on the <a href="/knowledge-hub/investments/investment-reports">investment reports page</a>.&nbsp;&nbsp;</div><p>&nbsp;</p>

<p>Whilst we can’t tell you which option is best for your individual circumstances, we can explain how Additional Voluntary Contributions (AVCs) work in the Railways Pension Scheme, and how these differ from Self-Invested Personal Pensions (SIPPs) and Individual Savings Accounts (ISAs).</p><p>These 3 arrangements offer very different ways to save and invest, with different tax rules and levels of access.</p><h5>Additional Voluntary Contributions (AVCs)</h5><p>AVCs are flexible extra pension savings you can make directly from your pay before tax is taken, on top of the normal pension contributions.<br></p><p>In the RPS there are 2 AVC arrangements: BRASS and AVC Extra. <br></p><p><strong>BRASS</strong></p><p>BRASS is the main arrangement for all active Defined Benefit members and is a great way to boost your retirement income. <br></p><p>It can be particularly useful if you receive additional earnings that don’t count towards your main Scheme pension – for example, overtime or bonus payments. <br></p><p>You can pay as little as £2 per week or £10 per month (if you are paid monthly) on top of your usual pension contributions.</p><p><strong>AVC Extra</strong></p><p>AVC Extra is available to members who have already reached the maximum they can pay into BRASS and still want to save more.&nbsp;<br></p><p>You can choose how much you want to pay into AVC Extra, but you should be mindful of tax limits.</p><p><strong>Key features of AVCs:</strong></p><ul type="disc"><li data-list="1" data-level="1">Flexible payments - you don’t need to save a fixed amount every month. If expenses go up, you can reduce your contributions, and you can increase them again when things are easier.</li><li data-list="1" data-level="1">Good for variable earning - particularly useful for topping up retirement savings from overtime, bonus payments or other non‑pensionable pay.</li><li data-list="1" data-level="1">Tax relief on contributions - you’ll get government tax relief on anything you put in, up to your annual allowance - currently £40,000 for most people.&nbsp;If you’re a high earner with an income of more than £200,000 a year, your annual allowance might gradually reduce to as low as £4,000 in the current tax year.</li><li data-list="1" data-level="1">Locked until retirement - AVC savings normally can’t be accessed until you reach your Normal Pension Age – currently 55, rising to 57 in 2028.</li><li data-list="1" data-level="1">Limited investment choice – &nbsp;you choose from a pre-selected range of funds supplied by the Scheme’s investment manager, Railpen.</li></ul><p>More information on BRASS and AVC Extra is available in <a href="https://www.railwayspensions.co.uk/defined-benefit-members/saving-more-BRASS-AVC-Extra" data-sf-ec-immutable="">the saving more area of this website</a>. </p><p>&nbsp;</p><h5>Self-Invested Personal Pension (SIPP)</h5><p>A SIPP is a personal pension you set up and manage yourself, separate from your employer. <br></p><p>You can pay money in regularly or in lump sums, with the aim of growing your pension pot over the long term.<br></p><p>You can choose to manage your own investments or use a financial adviser (usually for a fee).</p><p><strong>Key features of SIPPs:</strong></p><ul><li>Tax relief – you receive tax relief on your contributions at your income tax rate (20%, 40% or 45%)<ins cite="mailto:Gary%20Collinson" datetime="2026-02-24T14:45">. </ins>Your contributions taken from your pay after tax, but your provider then claims basic-rate tax relief from the government and adds it to your pension pot. </li><li>Wider investment choice - you can choose from a much broader range of investments than you can with workplace AVCs</li><li>You can access the money in your SIPP from the age of 55 (this is due to rise to 57 from 2028). You can take your pension pot either as a lump sum, draw it down gradually or use it to buy an annuity – which will provide you with a regular income.</li><li>With a SIPP, you have full control over your account - you choose the provider, how much to pay in, and where to invest. You also have the flexibility to transfer to another provider, or to choose when to take them.<br></li></ul><p>You can <a href="https://www.moneysavingexpert.com/pensions/cheap-sipps/" target="_blank" data-sf-ec-immutable="" data-sf-marked="">understand more about SIPPs in this article.</a></p><p>&nbsp;</p><h5>Individual Savings Account (ISA)</h5><p>An ISA is a normal savings or investment account that you can open and pay into. <br></p><p>You pay into it from your after‑tax income, but all the growth, dividends and interest are tax‑free<br></p><p>There are different types of ISA accounts:<br></p><ul><li>Cash ISA</li><li>Stocks &amp; Shares ISA</li><li>Lifetime ISA (for first home or retirement)</li><li>Innovative Finance ISA<br></li></ul><p>These are available through banks, building societies and other financial providers.</p><p><strong>Key features of ISAs:</strong></p><ul><li>Tax-free growth - you don’t pay any tax on returns and what you receive is paid to you free of tax</li><li>No tax relief on contributions - you save from your take‑home pay</li><li>Flexible access – you can withdraw your money at any time with no penalties (except specific rules for Lifetime ISAs).</li><li>Annual limit - you can put in up to £20,000 per tax year across all your ISAs combined.<br></li></ul><p>You can <a href="https://www.which.co.uk/money/savings-and-isas/isas/cash-isas/what-is-an-isa-aMsB46O009W4" target="_blank" data-sf-ec-immutable="">find out more about the different types of ISAs and how to manage an ISA account in this blog.</a> <br></p>

<h4>Understanding DB estimates</h4><p>Your estimate is a personalised forecast of what you might get from your Scheme pension, based on how long you’ve been paying into it, along with the rules of your Section. </p><p>Because DB pensions aren’t individual ‘pots’, the estimate shows what your annual pension (and any lump sum, if you choose to take one) is likely to be at the retirement date you choose.</p><p>Your estimate takes into account:</p><ul><li><strong>Your pensionable service</strong><br>This is the length of time you’ve been an active member of your section. The more pensionable service you have, the more pension you’ll be likely to receive.&nbsp; This can also include extra pension service you have brought in from another pension scheme, if your section accepts transfers.<br><br></li><li><strong>Your pensionable pay or Career Average Revalued Earnings (CARE) revaluations</strong><p>For final salary Sections, your pension benefits are usually calculated using your pensionable pay from the 12 months before your retirement. <br></p><p>For CARE Sections, your pension is using your average pensionable pay across the length of your membership. This is then adjusted (revalued) annually to keep pace with inflation or your Section rules.<br></p></li><li><strong>Any early or late retirement factors that may apply</strong><br>These are adjustments made if you take your pension before or after your Normal Retirement Date (NRD). Early retirement normally reduces your benefits as they’re paid for longer, while late retirement may increase them as they’re expected to be paid for less time.<br><br></li><li><strong>How much you decide to take as a lump sum</strong><br><a id="_anchor_4" href="https://railpen.sharepoint.com/sites/CustomerExperienceFunction/ProjectsActive/RAIL/RPS/Web/RPS%20website%20-%202024%20onwards/Content/4%20-%20Knowledge%20hub/2%20-%20News%20and%20views/Blogs/2026/Understanding%20DB%20estimates%20and%20how%20to%20request%20one.docx#_msocom_4" name="_msoanchor_4" data-sf-ec-immutable=""></a>You usually have the option to exchange part of your annual pension for a tax-free cash lump sum at retirement if you want to. If you pay into the BRASS Additional Voluntary Contribution (AVC) arrangement, then those savings must be taken as part of your lump sum. <br><br>However, limits apply on how much tax-free lump sum you can take, so occasionally, your excess BRASS funds might be converted to pension.<a id="_anchor_6" href="https://railpen.sharepoint.com/sites/CustomerExperienceFunction/ProjectsActive/RAIL/RPS/Web/RPS%20website%20-%202024%20onwards/Content/4%20-%20Knowledge%20hub/2%20-%20News%20and%20views/Blogs/2026/Understanding%20DB%20estimates%20and%20how%20to%20request%20one.docx#_msocom_6" name="_msoanchor_6" data-sf-ec-immutable=""></a>You can find out more about this in our <a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/lump-sum-allowances.pdf?sfvrsn=3fb0251a_2" data-sf-ec-immutable="">Read as You Need Guide on Lump Sum Allowances</a>.<br></li></ul><p>Your estimate helps you see a realistic projection of the benefits you could receive, so it’s a useful tool to have, whether you’re planning ahead, comparing options, or checking the impact of retiring earlier or later.</p><p>You can find more information on how your pension benefits are calculated for your specific Section in your Member Guide. You can find this in the ‘My Library’ area of your <a href="https://www.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>.<br></p><h4>Request an estimate online</h4><p>The easiest way to request an estimate and details of your options is by <a href="https://www.railwayspensions.co.uk/register" data-sf-ec-immutable="">logging into your myRPS account</a>. </p><p>You can request an estimate directly from:</p><ul><li>The myRPS dashboard, or</li><li>The myRPS menu, by selecting ‘My Pension’ and then 'Request an estimate’.</li></ul><p>When you do it online, you can request as many estimates as you need, whenever you need them, free of charge.<br></p><h4>Choosing your estimate type and retirement benefits</h4><p>You’ll be asked to choose the type of estimate you want from the range of options available to you.</p><p>You can select ‘Read more’ to find out more about each estimate type. The options shown are based on your scheme and your member status.</p><p>You’ll then be asked to set your chosen retirement date or your chosen calculation date. This will either default to today’s date or your Normal Retirement Date (NRD), depending on the estimate type you selected.</p><p>Once you’ve set your retirement or calculation date, you’ll see all of benefit options available to you and can select ‘read more’ to learn what each one means. </p><p>You can also find out more about the different ways to take your pension in your Member Guide, which you’ll find in the ‘My Library’ area of your <a href="https://www.railwayspensions.co.uk/login" data-sf-ec-immutable="">myRPS account</a>.<br></p><h4>How long it takes</h4><p>Once you’ve hit submit, it’ll usually take less than an hour to generate your online estimate.</p><p>Your estimate will be sent to the Inbox area of your myRPS account as a message with a PDF attachment. You can also view it via the ‘Statements and Estimates’ page, under the My Pension area of your myRPS account.</p><p>If you haven’t received anything after 24 hours, please contact the Helpline for further support.<br></p><h4>Request an estimate by phone</h4><p>Alternatively, you can ask for an estimate by calling the Helpline on 0800 012 1117. </p><p>Charges may apply if you request an estimate from the Helpline more than once in a year.<br></p><h4>Working out if your pension adds up</h4><p><a href="https://www.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/making-the-right-decision" data-sf-ec-immutable="">Visit the making the right decision page</a> to find out more and learn what actions you can take if you're not on track to be able to afford the retirement you want. </p><p>Please keep in mind that, the <a href="https://www.railwayspensions.co.uk/defined-benefit-members/Im-planning-to-take-my-pension/how-much-Ill-need" data-sf-ec-immutable="">Retirement Living Standards</a> and <a href="https://www.railwayspensions.co.uk/knowledge-hub/help-and-support/retirement-budgeting-calculator" data-sf-ec-immutable="">Retirement Budgeting Calculator</a> figures are based on the income you may need <em>after tax,</em> whereas your estimate gives you an idea of what you might receive from your pension <em>before tax</em>.<br></p>

<p>What many members don’t realise is that it’s often possible to bring those benefits together. <br></p><p>This process is known as an inter‑Scheme transfer&nbsp;- and it can make your pension easier to manage in the long run.<br></p><p>In this blog, we’ll walk through what inter‑Scheme transfers are, how they work, and where you can go for more information.</p><h5>What are inter‑Scheme transfers?</h5><p>An inter‑Scheme transfer lets you move pension benefits you have built up in one Railways Pension Scheme (RPS or 'the Scheme') Section to another. <ins cite="mailto:Jenny%20Prodanova" datetime="2026-01-19T10:05"></ins><br></p><p>This usually comes into play when you change employers within the rail industry and your new employer participates in a different Section of the Scheme.</p><p>Inter‑Scheme transfers don’t happen automatically. Even if your new employer is also in the RPS, you’ll need to request the transfer yourself if you want to bring your savings together. <br></p><p>If you choose not to request a transfer, any preserved benefits you have built up in your previous Section will remain in that Section.<br></p><h5>How inter‑Scheme transfers work</h5><p>While each Section of the Scheme has its own rules, the process generally looks like this:</p><p><strong>Check whether your Section allows transfers</strong><br></p><p>Each RPS Section sets its own rules about transferring benefits in. Some Defined Benefit (DB) Sections allow it, some don’t. </p><p>Your Member Guide, available through&nbsp;<a href="https://www.railwayspensions.co.uk/login" target="_blank" data-sf-ec-immutable="">your myRPS account</a> account, will tell you exactly what’s allowed.<br><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></strong></p><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Request a transfer quote</strong><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You can request one free inter‑Scheme transfer quote every 12 months. If you want additional quotes within the same year, there’s a fee of £96 (including VAT).<br></span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">Special terms may apply if you request a transfer within 15 months of leaving your current Section.</span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit"></span><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Complete an inter-Scheme transfer request form</strong></p><p><strong style="background-color: rgba(0, 0, 0, 0); color: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></strong><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">If you decide to proceed, you’ll need to fill in the official form. This gives the Scheme administrator the go‑ahead to assess your transfer value and start the process.&nbsp;</span><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">You can download the form </span><a href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/forms/final-salary-member-forms/inter-scheme-transfer-request-form.pdf?sfvrsn=4e6f1bb9_3" data-sf-ec-immutable="" style="font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit; font-size: inherit">here</a><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit; font-size: inherit">.</span></p><p><strong>Your transfer value is calculated<br></strong><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></p><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">For DB members, the value of your benefits is calculated using a basis provided by the Scheme Actuary.</span><br>For Defined Contribution (DC) members, the value available for transfer reflects your pot.<br><br><strong>Your new Section confirms it can accept the transfer</strong><br></p><p>Before the transfer is finalised, the Scheme administrator checks whether your new Section is eligible and willing to accept your benefits.<br><br><strong>Other options</strong><br>Alternatively, you may be able to transfer your preserved pension benefits to:</p><ul><li>a different (DB) arrangement, or</li><li>a defined contribution (DC) arrangement, either in the UK, or to an overseas provider, subject to satisfying conditions set out in legislation<br></li></ul><h5>Where to find out more</h5><p>If you're considering an inter‑Scheme transfer, here are the best places to start:<br></p><p><a href="https://www.railwayspensions.co.uk/login" data-sf-ec-immutable=""><strong>Your myRPS account</strong></a>&nbsp;- log in to access:<br></p><ul type="disc"><li>Your Member Guide, which sets out the rules for your specific Section</li><li>The Inter‑Scheme Transfer Request Form</li><li>Detailed information about your benefits<br></li></ul><p><strong>This website</strong><br></p><p><a href="https://www.railwayspensions.co.uk/pension-essentials/transferring-my-pension" data-sf-ec-immutable="">The Transferring in or out section</a> provides:<br></p><ul type="disc"><li>Clear guidance on how the process works</li><li>Downloadable forms</li><li>Information tailored for DB and DC members<br></li></ul><h5>Financial guidance or advice</h5><p>While financial advice is usually required only for transferring DB benefits out of the RPS, some members still prefer to get guidance before making decisions about bringing their pensions together.</p>

<div>&nbsp;</div><h4>What is a Protected Pension Age (PPA)?&nbsp;</h4><div>In general, the earliest you can take your pension benefits is the Normal Minimum Pension Age (NMPA). This is set by the government and is currently age 55 (rising to age 57 in 2028).</div><div><br></div><div>However, if you were an active member of the Railways Pension Scheme (the Scheme) on 5 April 2006, you might have what is known as a Protected Pension Age of 50 (PPA50). This means you may be able to take your benefits as early as 50 years old, rather than 55.</div><div><br></div><div>In this case, there are certain conditions that you must meet when taking your benefits before age 55, otherwise you risk losing your PPA50 and could face a significant tax bill. You can read more about that below.</div><div><br></div><div>When the NMPA increases from 55 to 57 in 2028 another form of PPA, known as PPA55, will be introduced. This may apply if you were an active member of any section of the Scheme on 3 November 2021. It will mean the earliest you can claim your benefits from 6 April 2028 will be age 55 (which is the same as the current NMPA). If you have a PPA50 you will still be able to take your benefits from age 50.</div><div><br></div><h4>How can I find out if I have a Protected Pension Age (PPA)?</h4><div>To see if you have PPA simply:</div><ul><li>Log into your <a href="/my-rps">myRPS account</a>&nbsp;</li><li>Go to ‘my pension’&nbsp;</li><li>Then ‘membership details’&nbsp;</li><li>And ‘additional details’</li></ul><div>There you will see your ‘Protection Status.’ If you have a PPA it will say ‘Protected’ and if you don’t have a PPA it will say ‘None.’</div><div><br></div><div>Underneath it will say ‘entitled to benefits before the age of 55?’ If you have PPA50 it will say ‘Yes’ if you don’t have a PPA50, it will say ‘No.’</div><div><br></div><div>If you have PPA50 it’s important you read on to understand what restrictions may apply when taking your benefits. If you have PPA55, or don’t have a PPA at all, please check the relevant pages below for more details about how and when to take your benefits:</div><div><br></div><ul><li><a href="/defined-benefit-members/Im-planning-to-take-my-pension">Defined benefit (DB) members – I’m planning to take my pension</a></li><li><a href="/iwdc-members/im-planning-to-take-my-iwdc-pot">Industry-Wide Defined Contribution (IWDC) members – I’m planning to take my IWDC pot</a></li></ul><h4>How does a PPA50 affect me taking my benefits?&nbsp;</h4><div>If you have PPA50 and want to take your benefits before age 55, then there are certain conditions that you must meet.</div><div><br></div><div>If you do not follow these conditions, then you risk losing your PPA50 and could face an ‘unauthorised payment’ tax charge of up to 55% on any benefits you take up to age 55.</div><div><br></div><div>To avoid this, if you have PPA50 and take your benefits before age 55, then:</div><div><br></div><ul><li>You must become ‘entitled’ to all your benefits from the Scheme at the same time. This includes any benefits you may have in other Sections. If you have both defined benefit (DB) and defined contribution (DC) policies, including AVC Extra, this requires some forward planning and means you need to decide what you want to do with your DC benefits first, before your DB benefits can be processed.</li><li>You must leave your current employment and not return for a set period.</li></ul><div>You should also be aware that:</div><div><br></div><ul><li>If you rejoin the Scheme, your PPA50 cannot be used in relation to your new benefits.</li><li>Other restrictions may also apply if you take your benefits due to ill health.</li></ul><div><p>You can find more details about each of these points below. If you have a Protected Pension Age (PPA), please read these details carefully and consider them as part of your retirement planning. You can also <a href="/knowledge-hub/help-and-support/get-in-touch">contact us</a> for more information or speak to an Independent Financial Advisor for further <a href="/pension-essentials/guidance-advice">guidance and advice</a>.</p><p><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"><strong>If you choose to take your benefits before age 55, you must become entitled all your benefits from the Scheme at the same time.</strong></span></p></div><div>You may have multiple policies within the Scheme, if you have changed employers during your career, or paid AVCs.</div><div><br></div><div>In line with legislation, if you have PPA50 and want to take your benefits within the Scheme before age 55, then you must become entitled to your benefits from all these policies at the same time.</div><div><br></div><div>This is slightly more complex if you have both defined benefit (DB) and defined contribution (DC) policies.</div><div><br></div><ul><li>For DB policies (including BRASS), entitlement rises at the date of your retirement OR the date Railpen receive all the information needed to pay your benefits, whichever comes later.</li></ul><ul><li>For DC policies (including IWDC or AVC Extra), when you become entitled, depends on how you choose to use your DC pot.</li></ul><div>This means you need to decide how you want to take your DC benefits BEFORE you take your DB benefits, otherwise you’re unlikely to reach entitlement at the same time.&nbsp;</div><div><br></div><div>If you’re unsure whether you have both DB and DC policies, you can find out by logging into your myRPS account. Go to the bottom of your dashboard and you’ll see any different periods of membership listed there. Alternatively, please send us a message via your <a href="/my-rps">myRPS account</a> or<a href="/knowledge-hub/help-and-support/get-in-touch"> get in touch </a>and we can confirm that for you.</div><div><br></div><div><p>If you do have both DB and DC policies, then you have 2 options to choose from in how you can take your DC benefits. These are:</p><p style="margin-left: 30px">1.&nbsp;Transfer your DC benefits out to another provider</p><div><p style="margin-left: 30px">This may give you other options for taking your DC benefits, such as drawdown, one or more lump sums, another form of annuity (other than a lifetime annuity) or to keep your funds invested for longer. We will not be able to put your DB policies into payment until this transfer is complete, otherwise they may be considered ‘unauthorised payments’ by HMRC and would be subject to additional tax charges. You should also keep in mind that the external provider may not be able to pay your transferred DC benefits before you reach the current standard NMPA of 55 (increasing to 57 from 6 April 2028). You can find out more about transfers and the process involved on the<a href="/pension-essentials/transferring-my-pension"> transferring in or out page</a>.</p></div></div><p style="margin-left: 30px">2. Purchase a lifetime annuity</p><div style="margin-left: 30px">This allows you to transfer your DC benefits to an annuity provider who will then pay you a regular income. You should shop around to find the best provider for you. Please bear in mind that once you purchase an annuity, you need to have become entitled to your DB benefits within six months, to avoid the ‘unauthorised payment’ tax charge of 55%. You can find more details about purchasing an annuity on the <a href="/iwdc-members/im-planning-to-take-my-iwdc-pot/understanding-annuities">understanding annuities page</a>.</div><div><br></div><div><p><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"><strong>You must leave your current employment at the time you take your benefits&nbsp;</strong></span></p></div><div>A PPA50 can be lost if after taking benefits you are employed by:</div><div><br></div><ul><li>the same employer;</li><li>another employer in the same corporate group; or</li><li>any sponsoring employer you are connected to.</li></ul><div>This means, if you take your benefits before age 55, you must leave your current employment, and make sure you are not employed by any of those listed above when you take your benefits.</div><div><br></div><div>You can only re-join the employers listed if you leave a gap of at least:</div><div><br></div><ul><li>1 month if the role is completely different to your previous role, or</li><li><p>6 months if the role is not materially different to your previous role</p></li></ul><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Once you reach age 55, the above conditions no longer apply.</span></p><div><p><span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"><strong>If you take your benefits before age 55, and then re-join the Scheme, your PPA50 can not be used in relation to your new benefits.</strong></span></p></div><div>Any benefits from the new period of membership would need to be taken after you reach age 55 (or potentially age 57 from 6 April 2028).</div><div><br></div><div><p>You should also make sure that any employment would not cause you to lose your PPA50 (as explained above).</p><p><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"><strong>If you take your benefits due to ill health, other restrictions may apply.</strong></span></p></div><div><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">If you have a PPA and expect to claim your pension before age 55 on the grounds of ill health, please <a href="/knowledge-hub/help-and-support/get-in-touch">contact us</a>. This will allow us to carry out the necessary checks and confirm what is applicable in your specific circumstances.</span></div><div><br></div><h4>Where to find further information</h4><p>For more information please check the <a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-all-members/protected-pension-age.pdf?sfvrsn=81a239f_22">Protected Pension Age Read as You Need guide</a> or contact us directly. If you're already planning your retirement with a PPA, you should <a data-sf-ec-immutable="" href="https://preprod.railwayspensions.co.uk/knowledge-hub/help-and-support/get-in-touch">get in touch</a> straight away.</p><div><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">You may want to speak to an Independent Financial Advisor before making any decisions. You can get details of how to find one on the </span><a href="/pension-essentials/guidance-advice" style="font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; white-space: inherit">guidance and advice page</a><span style="background-color: initial; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">.</span></div>

<div>Around 42% of marriages and civil partnerships in the UK end in divorce or dissolution. That’s an average of 100,000 every year.&nbsp;&nbsp;</div><div><br></div><p>If yours is one of them, then your Scheme pension is likely to be taken into account along with your other assets when any financial settlements are worked out.&nbsp;&nbsp;</p><div>A Court order can be made to transfer part of the value of your pension benefits during the divorce or dissolution proceedings. In this case your benefits in the Scheme will be reduced to provide benefits for your ex-spouse or ex-civil partner. We’ve answered some common questions about this below.&nbsp;&nbsp;</div><div><br></div><div>Your basic <a href="/pension-essentials/state-pension">State Pension </a>will not be shared if your marriage or civil partnership ends.&nbsp;</div><div><br></div><div>However, if you reached State Pension age before 6 April 2016, your ex-spouse or former civil partner could use your National Insurance contributions to increase their basic State Pension. This is only valid if they don’t remarry or enter a civil partnership before they reach their State Pension age.&nbsp;<span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><div>If you have a 'protected payment' from the additional State Pension, you may have to share this with your ex-spouse or former civil partner. However, they lose this right if they remarry or enter a civil partnership.&nbsp;</div><div><br></div><p>Please bear in mind that if you live in Scotland, only pensions built up during your marriage or civil partnership matter. This is different to the rest of the UK. &nbsp;</p><h4>How might my Scheme pension be shared out in divorce or dissolution?&nbsp;&nbsp;</h4><div>Typically, Courts tend to favour a Pension Sharing Order (PSO), but there are other options too. These are outlined below.&nbsp; &nbsp;</div><div><br></div><div><strong>Pension Sharing Order (PSO)&nbsp;</strong></div><div><br></div><div>With a PSO, a one-off payment, agreed by both parties and approved by the Court, is made from your pension to your ex-spouse or former civil partner at the time of divorce or ending of a civil partnership. This is taken off the total amount of your pension.&nbsp;&nbsp;</div><div><br></div><div>Your ex-spouse or former civil partner receives their share as soon as the order is finalised. Once this payment has been made, they will have no further claim to your pension. The amount they receive will need to be transferred to another pension arrangement.&nbsp;</div><div>&nbsp;</div><div>If your ex-spouse or former civil partner dies before you do, the pension debit will not be re-instated to you.&nbsp;</div><div><br></div><div><strong>Pension Offsetting&nbsp;</strong></div><div><br></div><div>With Pension Offsetting, you keep your pension assets to yourself in their entirety while something else of the same or similar value, such as property, is awarded to your ex-spouse or former civil partner. If your situation changes in the future and you re-marry or die, your offsetting agreement won’t be affected.&nbsp;</div><div><br></div><div><strong>Pension Attachment Order (Earmarking Order)&nbsp;</strong></div><div>&nbsp;</div><div>With an Earmarking Order an amount agreed by both parties and approved by the Court, will go to your ex-spouse or former civil partner when you start getting your pension. The amount could also include a portion of your lump sum death benefit and/or your retirement lump sum.&nbsp;&nbsp;</div><div><br></div><div>The payments will be made directly to your ex-spouse or former civil partner when you decide to take your benefits.&nbsp;&nbsp;</div><div>&nbsp;</div><div>If you die before you start receiving your pension, your ex-spouse or former civil partner will not get the share awarded to them. However, they may still receive some of the lump sum which could be paid out when you die.&nbsp;</div><div>&nbsp;</div><div>If your ex-spouse or former civil partner remarries, enters a new civil partnership or dies before you, they will no longer receive any of your pension payments awarded to them and it will be re-instated to you. However, they may still be entitled to a retirement lump sum.&nbsp;</div><div><br></div><h4>How will any Additional Voluntary Contributions (AVCs) be split? &nbsp;</h4><div><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Any additional payments you've made to your pension, either via BRASS or AVC Extra, will be included in the calculations at the time of divorce. They will form part of the total amount of your pension that will be shared between you and your ex-spouse or former civil partner, unless the Court Order stipulates otherwise. &nbsp;</span></div><div><br></div><h4>What information does the Court need to make a decision? </h4><div>The Court will need details of your pension benefits. This comes in the form of a CETV (Cash Equivalent Transfer Value) for divorce purposes. It includes:&nbsp;</div><div><br></div><div><ul><li>the value of your pension and lump sum (or pension in payment if you have retired) </li><li>the value of your ex-partner's dependent pension </li><li>the value of your death after retirement lump sum </li><li>the amount of lump sum death benefit payable if you died in service </li><li>your period of membership&nbsp;</li></ul></div><div>You can request a CETV from the Scheme administrator, Railpen. They can share it with you, your Solicitor or the Court.&nbsp;&nbsp;</div><div><br></div><div>There is an administration fee of £300 (including VAT) for a CETV.&nbsp; &nbsp;</div><div><br></div><div>There is also a cost of £1,200 (including VAT) to implement any court order. The Court order will set out who pays this charge. In most cases, it’s taken out of pension benefits.&nbsp;</div><div><br></div><div>If you have pension benefits in more than one section of the RPS, these charges will apply to each separate section.   &nbsp;</div><div><br></div><h4>How long does the process take?&nbsp;</h4><div>It can take up to 4 months to process a Court order on your pension as the result of a divorce or dissolution of a civil partnership.&nbsp;</div><div>&nbsp;</div><div>You can find more details about the steps involved in the <a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/divorce-process-timeline/rps-divorce_swimlane-june-25.pdf?sfvrsn=8ec0ef4e_6">divorce process timeline</a>.&nbsp;&nbsp;</div><div><br></div><h4>What if I’m already taking my benefits?&nbsp;</h4><div>If you’re already taking your benefits, then the Court will still share your pension in one of the three ways outlined above.&nbsp;&nbsp;</div><div>&nbsp;</div><div>It will be based on the value of your pension in payment. It will not include any lump sum you have already taken, or you are yet to receive, or any pension payments you have gotten already.&nbsp;&nbsp;<span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><div><p>The sharing of pensions in this situation can be complex and you may want to seek professional advice from a solicitor, actuary or Independent Financial Advisor.&nbsp;<span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></p><h4><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span>Where can I find out more?&nbsp;&nbsp;</h4></div><div>You can learn more about the options, process and charges in the ‘<a target="_blank" href="https://cdn3.railpen.com/mp-sitefinity-prod/docs/default-source/rayn/guides-for-db-members---active-and-preserved/guide-on-divorce.pdf?sfvrsn=38707e6f_15">Guide for members on divorce and dissolution</a>’&nbsp;<span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><div>If you need further support, please get in touch, or try one of the services listed below.&nbsp;&nbsp;</div><div>&nbsp;</div><div><strong>MoneyHelper&nbsp;&nbsp;</strong></div><div>Government-backed MoneyHelper offers free support and guidance on a wide range of financial matters, online and over the phone. <a href="https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems/split-pensions-in-a-divorce-or-dissolution" target="_blank" data-sf-ec-immutable="">There is a dedicated area of their website that provides support with divorce and dissolution</a>. &nbsp;<span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><div><strong>Unbiased&nbsp;&nbsp;</strong></div><div>An Independent Financial Adviser (IFA) will help you understand your pension, the options available and how to manage your finances. <a href="https://www.unbiased.co.uk/" target="_blank" data-sf-ec-immutable="">You can find a register of IFAs on the Unbiased website</a>. &nbsp;<span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></div><div><br></div><div><strong>Gov.uk&nbsp;</strong></div><div><p>The &nbsp;<a href="https://www.gov.uk/" target="_blank" data-sf-ec-immutable="">government website</a>  offers clear information on a wide range of financial issues. <a href="https://www.gov.uk/check-state-pension" target="_blank" data-sf-ec-immutable="">You can also use it to check your State Pension forecast</a>.&nbsp;&nbsp;</p><p>&nbsp;</p></div>

<div><h4>What is salary sacrifice?<span style="background-color: initial; color: rgba(51, 51, 51, 1); font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></h4><p><span style="background-color: initial; color: rgba(51, 51, 51, 1); font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Salary sacrifice is an agreement between you and your employer where you give up a small part of your pay, and your employer pays that amount directly into your pension for you instead. You might hear it called salary sacrifice or SMART pension contributions.</span></p></div><div><p>Because your salary is then lower, you pay less National Insurance (NI). This means your take‑home pay can actually go up. Your employer may save on NI too.</p></div><div><p>You can also use salary sacrifice to pay more into your BRASS or AVC Extra pots.</p></div><div>If you don’t use salary sacrifice, you still get income tax relief on pension contributions, but you don’t get NI savings as well.</div><div><br></div><h4>How do I know if I have it?</h4><div><p>Your employer will have told you if you’re using salary sacrifice when you joined the scheme. If you are, you’ll see it as a deduction on your payslip.</p><p>You can only use salary sacrifice if your employer allows it.</p></div><div><br></div><h4>Why you might not want salary sacrifice</h4><div>Even though NI savings can be attractive, salary sacrifice isn’t always best for everyone. For example:<br></div><ul><li>A lower salary might affect mortgage applications, loan checks, or some state benefits.</li><li>If your pay drops below the lower earnings limit, you may not build up NI credits, and you need 35 years of NI for the full State Pension.</li><li>You can’t use salary sacrifice if it would take your pay below the National Minimum Wage.</li></ul><div><br></div><h4>How salary sacrifice is changing in 2029&nbsp;</h4><div><p>In the Autumn Budget 2025, the government announced that from April 2029, if you pay more than £2,000 a year into your pension using salary sacrifice, you and your employer will have to pay NI on anything above that £2,000 limit.</p></div><div><p>Employee pension contributions will still get income tax relief (as long as they are within annual allowance limits), whether they are made through salary sacrifice or not.</p></div><div>You can still use salary sacrifice to pay more than £2,000 a year into your pension, but any amount above the £2,000 cap will be treated like normal pension contributions. That means both you and your employer will pay NI on the extra amount.</div><div><br></div><h4>What the changes mean for you</h4><div><p>Most people who make typical pension contributions won’t notice any difference.</p></div><ul><li><strong>Example 1</strong><br>If you earn £38,000 and contribute 5% through salary sacrifice, you contribute £1,900 a year. This is below the £2,000 limit, so neither you nor your employer will pay any NI on it.</li></ul><div><p>So, if you save less than £2,000 a year into your pension using salary sacrifice, or you don’t use salary sacrifice at all, these changes won’t affect you.</p></div><ul><li><strong>Example 2</strong><br>If you earn £50,000 and contribute 5% through salary sacrifice, you contribute £2,500 a year. NI will be due on the £500 above the £2,000 limit. The employee NI contribution is approximately £40 based on today’s rates.</li></ul><div><p>If you already pay more than £2,000 a year through salary sacrifice (or were planning to), you may want to speak to your employer about what the 2029 changes mean and whether your NI bill will increase. Some people may find it helpful to get independent financial advice.</p></div><div><p>Even with the £2,000 cap before NI applies, salary sacrifice can still reduce your overall tax bill by keeping your income below the higher‑rate tax threshold.</p></div><h3>Whatever your situation, these changes should not put you off saving for retirement. Pension savings will continue to offer strong tax advantages, even with the new rules.</h3><div></div>

<h3><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></h3><h3><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">What is Inheritance Tax?</span></h3><p>Inheritance Tax is a tax on the money, property and possessions someone leaves when they die.</p><p>Most estates don’t pay this tax because they are worth less than £325,000. Anything left to a spouse, civil partner or charity is also exempt.</p><p>If an estate is worth more than the threshold, the tax rate on the extra amount is 40%.</p><div><br></div><h3>What are the current Inheritance Tax rules?</h3><p>At the moment, unused pension savings and death benefits usually don’t count towards the estate and aren’t taxed. There are a few exceptions, such as some NHS and judicial pensions, but most UK pensions are set up so they aren’t part of the estate.</p><p>Because of this, pensions have often been used to pass on wealth without paying tax. For example, someone could save a lot in their pension and use other money for living costs, leaving the pension untouched to pass on tax-free.</p><div><p><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">&nbsp;</span></p><h3><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">How will Inheritance Tax rules change in 2027?</span></h3></div><p>If an individual dies on or after 6 April 2027 with unused pension savings or death benefits, most of these will count as part of their estate. This is called notional pension property.</p><p>The Personal Representative handling the estate (usually the executor or administrator) will need to include the pension value when working out the estate. They’re responsible for notifying and paying any Inheritance Tax due to HMRC.</p><p>The new rules aim to make inheritance fairer and encourage members to use their pensions for retirement income, as intended.</p><div><p>The government expects around 10,500 more estates will pay Inheritance Tax because of this change.<br></p></div><h3>What counts as notional pension property?</h3><ul><li>Any unused pension pot in a money purchase arrangement, for example, Additional Voluntary Contributions like BRASS or AVC Extra, or funds in a Defined Contribution section, such as IWDC.</li><li>Funds in other pension schemes that haven’t been taken yet, including income drawdown arrangements.</li><li>Lump sum death benefits paid to beneficiaries.</li><li>The balance of any guarantee period for a pension or annuity already started.</li></ul><div><br></div><h3>What is excluded?</h3><ul><li>Death in service benefits if the member was still working – these are exempt from Inheritance Tax.</li><li>Lump sums paid to charities from unused pension pots or drawdown funds.</li><li>Defined benefit pensions (except lump sums from a guarantee period). Pensions paid to a spouse, civil partner, children or dependants are also excluded.</li><li>Trivial commutation lump sum death benefits under £30,000, paid in lieu of a small dependant’s pension.</li><li>Any annuity bought with a pension pot (except the remaining guarantee period) as payments stop after death. Joint life annuities paid to a surviving partner are also excluded.<br></li></ul><h3>How do I make an Inheritance Tax payment to HMRC?</h3><p><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">Personal Representatives can ask a pension scheme to hold back 50% of taxable pension benefits if they think Inheritance Tax will be due. They then have 15 months to tell the scheme to pay the tax directly to HMRC.</span></p><p>The Pension Representative is responsible for notifying and paying any Inheritance Tax due to HMRC.</p><div><span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></div><div><br></div><h3>Find out more</h3><p>For guidance&nbsp;<span style="background-color: initial; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit">on inheritance tax, speak to an Independent Financial Adviser.</span></p><p><a href="https://www.lv.com/" target="_blank" data-sf-ec-immutable="">Liverpool Victoria (LV)</a> has been chosen as the official partner to give RPS members access to financial advice. LV can be contacted on 0800 023 4187. This service is authorised and regulated by the Financial Conduct Authority.</p><p>You can also visit <a href="https://www.moneyhelper.org.uk/en" target="_blank" data-sf-ec-immutable="">MoneyHelper</a> for free, impartial advice backed by the government.</p>

<p>This limit is known as ‘maximum membership’.<br></p><p>For most sections of the Railways Pension Scheme (RPS), members can contribute and build up benefits from the date they join the Scheme until the date they leave service or ‘opt out. <br></p><p>However, some employers have retained a maximum membership duration of 40 years. This includes:<br></p><ul type="disc"><li data-list="0" data-level="1">service across all RPS sections, and</li><li data-list="0" data-level="1">any service transferred into the Scheme<br></li></ul><p>So, let’s explore the rules around both scenarios:</p><p><br></p><h3>If your section has a 40-year maximum membership</h3><p>Once you reach 40 years of membership:<br></p><ul type="disc"><li data-list="2" data-level="1">Your RPS contributions will automatically stop</li><li data-list="2" data-level="1">You’ll still be considered an active member</li><li data-list="2" data-level="1">Your pension will continue to increase in line with your Pensionable Pay</li><li data-list="2" data-level="1">You’ll remain eligible for death in service benefits</li><li data-list="2" data-level="1">You can continue making Additional Voluntary Contributions (AVCs)</li></ul><p>&nbsp;</p><h3>If your section does not have a 40-year maximum membership</h3><p>If you’re a protected member, you’ll be given a choice before reaching 40 years:<br></p><ul type="disc"><li data-list="1" data-level="1">Continue contributing and building up benefits, or</li><li data-list="1" data-level="1">Stop contributing and retain the same benefits listed above<br></li></ul><p>If you’re a non-protected member, you’ll continue contributing and building up benefits until you leave the Scheme or claim your pension.<br></p><p>&nbsp;</p><p><strong>Not sure if your section has a maximum membership limit?</strong></p><p>Check your Member Guide for more information. You can find it in your <a href="/my-rps">myRPS account</a>.</p>

<p>Pension recycling refers to the practice of taking tax-free cash (usually 25% of a pension pot) and reinvesting it back into a pension scheme to gain further tax relief. </p><p>While this might seem like savvy financial planning, HMRC has strict rules to prevent abuse of the pension tax relief system.</p><h5>What are the rules?</h5><p>HMRC’s pension recycling rules are designed to prevent individuals from exploiting tax relief by using their tax-free lump sum to make significantly increased pension contributions. </p><p>If HMRC determines that an individual has used their tax-free cash in this way, they may treat the payment as ‘unauthorised’. This could result in a tax charge of up to 70% of the value of your tax-free cash.</p><p>HMRC considers a lump sum paid to be unauthorised if all of the following conditions are met:</p><ol><li>The individual received a tax-free lump sum from one or more pension schemes</li><li>Their pension contributions increase significantly as a result</li><li>The lump sum (plus any others taken in the previous 12 months) exceeds £7,500<strong></strong></li><li>The increase in contributions over a 5-year period is more than 30% of the lump sum taken<strong></strong></li><li>The recycling was pre-planned - i.e. the individual intended to use the lump sum to fund increased contributions. Even if the contributions were made before the lump sum was taken, HMRC may still consider it pre-planned.<strong></strong></li></ol><p><strong>&nbsp;</strong></p><h5>The 5-year testing period</h5><p>HMRC examines contributions made in:</p><ul type="disc"><li>The tax year the lump sum was taken</li><li>2 years before</li><li>2 years after</li></ul><p>This 5-year window helps determine whether the increase in contributions was significant and linked to the lump sum. </p><p>&nbsp;</p><h5>Tax penalties for breaching the rules</h5><p>If caught by the recycling rules, the tax-free cash is treated as an unauthorised payment, which may trigger serious financial implications </p><p>&nbsp;</p><h5>When pension recycling doesn’t apply</h5><p>Recycling does not apply if:</p><ul type="disc"><li>The lump sum is under £7,500.</li><li>Contributions increase due to salary, bonus, or commission (without changing the contribution basis).</li><li>The increase is funded by unrelated sources like inheritance or redundancy.</li><li>The contributions are made to someone else's pension (e.g., spouse or child). <strong></strong></li></ul><p><strong>&nbsp;</strong></p><h5>Find out more</h5><p>More information on pension recycling is available in <a href="https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm133810" target="_blank" data-sf-ec-immutable="" data-sf-marked="">the Pension Tax Manual on the government’s website</a>. The manual provides the legal framework for pension recycling.<span style="background-color: rgba(0, 0, 0, 0); color: inherit; font-family: inherit; font-size: inherit; text-align: inherit; text-transform: inherit; word-spacing: normal; caret-color: auto; white-space: inherit"></span></p>