Railway pension

[SouthernStar]

Not sure where to post this, but given this is a work related issue, I thought the jobs/career section would be the best fit.
I’m trying to do some research as each TOC has their own section of the railway pension, and that the auto-contributions will differ between TOCs. I’ve read you can do an inter-transfer and consolidate your pension into one, on the Railpen website, but I’ve also read some TOCs do not allow this, even if you go between employers in the rail industry.

 

[Horizon22]

Not sure where to post this, but given this is a work related issue, I thought the jobs/career section would be the best fit.
I’m trying to do some research as each TOC has their own section of the railway pension, and that the auto-contributions will differ between TOCs. I’ve read you can do an inter-transfer and consolidate your pension into one, on the Railpen website, but I’ve also read some TOCs do not allow this, even if you go between employers in the rail industry.

I’m not aware of their being that many issues for inter-TOC transference it’s just that some have slightly different terms based on length of service etc. so you might not be put on the “better” scheme straight away.

RPS are the best people to ask on this and I think there’s a section on their website dedicated to it. They’ll know more on the specifics.

 

[1867Blue]

Hi all, thought I’d post in here to save another new thread.

I will be new to the RPS and Brass, can somebody explain to me in idiot terms how the RPS final salary pension and brass works please.

 

[306024]

Hi all, thought I’d post in here to save another new thread.

I will be new to the RPS and Brass, can somebody explain to me in idiot terms how the RPS final salary pension and brass works please.

Best speak to your HR department. While you could get excellent advice on here from someone knowledgeable, you could get complete nonsense. How would you tell the difference?

 

[muz379]

Hi all, thought I’d post in here to save another new thread.

I will be new to the RPS and Brass, can somebody explain to me in idiot terms how the RPS final salary pension and brass works please.

Different sections of the scheme have slightly different rules for taking your pension and brass funds at retirement, one of the biggest for example is how network rail scheme members take their brass funds post 2009 . Without knowing what section you are in in it would be difficult to give any specific info .

But in basic terms the RPS schemes are defined benefit schemes , that is your annual pension at retirement is linked to your length of service and pensionable pay at retirement . Rather than being based on exactly how much you have contributed as is he case with defined contribution schemes

For example the network rail scheme formula for taking RPS65 benefits at the normal retirement age is as follows .

(Final average pensionable pay - 75% of the basic state pension ) X Years of Service ÷ 60 (Scheme accural rate)

Brass is just a form of additional voluntary contributions that you can make to your pension which are then invested depending on your preferences , at retirement your brass fund is then either used to fund a lump sum or depending on the rules of your section might be able to be traded for additional annual pension . There are some tax benefits both during employment and at retirement to making AVC's as well . But without knowing specifics it would be impossible to say what these benefits ccould/would be .

If you are or will be an RPS member I would say the best place to start would be to register online and access the scheme members guide which gives information about the scheme

 

[Efini92]

Not sure where to post this, but given this is a work related issue, I thought the jobs/career section would be the best fit.
I’m trying to do some research as each TOC has their own section of the railway pension, and that the auto-contributions will differ between TOCs. I’ve read you can do an inter-transfer and consolidate your pension into one, on the Railpen website, but I’ve also read some TOCs do not allow this, even if you go between employers in the rail industry.

When you leave your pension will be frozen. You can request an inter scheme transfer from RPS once you have enrolled into the new pension scheme. They will send you breakdown of what you will get if you transfer in. If you’re happy with the figures you can accept it. If you’re not, then it stays frozen until you’re eligible to claim it.
It’s worth noting that depending on the salary difference you may lose some years, however as the defined benefit is worked out on a career average, your starting point for the average will probably be higher.
I’ve not heard of anyone unable to transfer between schemes. I’ve transferred mine twice.

 

[whoosh]

No longer Final Salary (despite being on all the job adverts) , but is Defined Benefit.

Even current employees are NOT in a Final Salary pension scheme.

 

[Efini92]

No longer Final Salary (despite being on all the job adverts) , but is Defined Benefit.

Even current employees are NOT in a Final Salary pension scheme.

Defined benefit is a final salary pension.
You’re right in that your pension won’t be the last salary that you had before retiring.

 

[1867Blue]

No longer Final Salary (despite being on all the job adverts) , but is Defined Benefit.

Even current employees are NOT in a Final Salary pension scheme.

Whats the difference

 

[jfollows]

Whats the difference

Speaking generically, I know nothing about the railway's pension schemes:

A 'final salary' pension is a 'defined benefit' pension in that the benefit (the pension you get paid) is defined based on a number of factors such as years of pensionable service and your final salary.

There are other 'defined benefit' pensions in which your benefit is still defined, but in a different way. For example a 'career average' pension is based on average pay rather than final pay. I have one of these - nothing to do with the railway - in which every year I 'earned' a pension amount which was then added to the next year's amount and so on.

The essence of 'defined benefit' is the benefit is defined and the pension fund has to pay out. What the benefit is defined from is what is important, and it may or may not be based on your final salary.

'Defined contribution' pensions are totally different, you pay money in and you take a pension based on how much your investments accumulate.

PS Over my career I have ended up with a defined benefit/final salary pension, a defined benefit/career average pension and a defined contribution pension. Makes life interesting. Especially when they all kick in at different times of my life.

 

[1867Blue]

Speaking generically, I know nothing about the railway's pension schemes:

A 'final salary' pension is a 'defined benefit' pension in that the benefit (the pension you get paid) is defined based on a number of factors such as years of pensionable service and your final salary.

There are other 'defined benefit' pensions in which your benefit is still defined, but in a different way. For example a 'career average' pension is based on average pay rather than final pay. I have one of these - nothing to do with the railway - in which every year I 'earned' a pension amount which was then added to the next year's amount and so on.

The essence of 'defined benefit' is the benefit is defined and the pension fund has to pay out. What the benefit is defined from is what is important, and it may or may not be based on your final salary.

'Defined contribution' pensions are totally different, you pay money in and you take a pension based on how much your investments accumulate.

PS Over my career I have ended up with a defined benefit/final salary pension, a defined benefit/career average pension and a defined contribution pension. Makes life interesting. Especially when they all kick in at different times of my life.

Thank you for that

 

[sidney]

What is the general train driver retirement age for pensions?
Thank you

 

[Andrew1395]

New recruits 65.

 

[12LDA28C]

New recruits 65.

Although you can retire earlier or later as you wish. Retiring before age 65 will see a reduction in pension benefits on a sliding scale depending on how 'early' you retire.

 

[Andrew1395]

Yes you are right. I think I meant to say that the schemes nominal retirement date for new recruits is 65. any Current employee will receive information from RPS that says what the nominal retirement date is (60 or 65). For some ex BR employees still actively employed without broken service it might even be as low as 50 for when you can ask to take your railway pension. For others the earliest date will be 55. But as you say there will be pretty hefty reductions (discounts) on the amounts you will see when requesting a formal quote. There is an online planner that has all the relevant information for your individual situation.

 

[muz379]

As others have said there is a percentage based reduction for every year you take the pension early set out in your scheme rules .

Worth knowing and planning for if you are young enough to think about these things , even considering paying into brass if you know you want to go early .

 

[greatkingrat]

New recruits 65.

It's 65 for Network Rail, but 62 for most (if not all) TOCs.

 

[james1996]

How much does a train driver pay (%) to their pension each month?

 

[anglian96]

How much does a train driver pay (%) to their pension each month?

Company specific

 

[james1996]

GTR (Southern)?

 

[Casey Jones125]

Does anyone answer the phone at Rail Pen!!!

 

[12LDA28C]

Does anyone answer the phone at Rail Pen!!!

You're better off sending an email so that you've got a record of their answers to any questions you may have.

 

[SLC001]

As someone who worked in and owned a successful Independent Financial Adviser business, I would point out that it is worthwhile paying for independent advice on this matter. A good IFA can answer all sorts of questions and more importantly, given answers to your personal circumstances. Accept you will pay a fee (gone are the days when advisers were paid by commission, i.e. by selling a product) and you will get better answers and under written by the industry compensation scheme. When I look at what is on social media, websites like this, I cringe at some of the things I read. We all seem to be happier to take advice from someone down the pub that take professional advice. A simple letter of authority to your TOC pension administrator will enable tailored advice to be given by the IFA - and options - to be given.
I have seen the poor results of people not taking advice so it is well worth considering. I'm not flogging anything, just pointing out an option which too many people do not consider.

 

[Andrew1395]

The Railway Pension won’t act on any transfer out request until they see evidence that Independent Financial advise has been received. A former colleague I know did transfer his money out of the scheme. He had a substantial sum, and paid a hefty fee to the Independent Financial Advisor he used. That was in the context of having used the advisor before to deal with a large legacy from a deceased relative. There was therefore some history between them. He considered the fee worth paying as he achieved what he wanted. Good advice is worth paying for!

He had a particular concern about support for young children in the event of the death of himself and wife at the same time once he retired. So, he had very specific things he wanted to do with his pension pot. Including consideration and complications around inheritance tax.

so to get really good advice, create a very comprehensive brief. So that your independent financial advisor can tailor the advise they are to discuss with you.

Pensions are complex, partly because the rules keep changing. So don’t advice today with the thought that it will be fit for purpose in 18 months time. Take it when you are pretty certain you want to make a change.