News
Pensions are constantly evolving and there may be changes that affect your membership. Therefore, it’s important to keep up to date with what’s happening.
16 May 2025
If you have seen recent headlines about investment markets dropping in value, you might be wondering what it means for your pension…
So, here is a summary of how investment markets affect your pension savings and some things to consider if you are concerned…
The Uniper Group of the ESPS is a defined benefit (DB) arrangement. That means that what you get is determined by the rules of your section in the Scheme rather than by market performance.
For members in the final salary sections, your pension is based on your salary and how long you’ve worked.
For members in the Retirement Balance Plan (RBP), the value of your retirement balance is determined primarily by the benefit levels you have chosen.
In either case this remains unchanged as markets go up or down.
You can read more about how your benefits are calculated in your Member Guides.
As a member of a DB arrangement, you do not have to make any decisions about how your Scheme contributions are invested.
If you are a final salary section member and pay Additional Voluntary Contributions (AVCs) these work slightly differently and market performance plays a more significant role.
The money you pay into AVCs goes into a dedicated pension account with Standard Life. This is separate to your Scheme pension.
Your AVCs are then paid into the investment funds you choose from the range available with Standard Life. The value of your AVC account when you retire will depend on how much you pay in, and on the performance of your chosen funds.
The value of the investment funds is likely to change over time - they can go down as well as up. This is normal. High-risk funds are likely to have bigger and sharper rises and falls in value over the short-term, but long-term they are expected (although not guaranteed) to grow more in value.
You should remember to check your investment funds regularly to make sure they are still suitable for you.
You can find more information about your AVC investment funds, and the options available to you, in the
Uniper Group of the Electricity Supply Pension Scheme hub. You can also call Standard Life directly on 0345 606 0075.
You may want to speak to an Independent Financial Adviser before making any changes, particularly if you are close to retirement and are not planning to invest for the longer term. You can find an IFA in your area at www.unbiased.co.uk
The UPP is a defined contribution (DC) arrangement. The money you pay in is invested into a range of funds, with the aim of helping your pension account grow over time.
How much you receive when you come to take your benefits, will depend on how the funds perform, how much you have paid into your pension account and any deductions that have been made.
During times of market volatility, you might notice a dip in your pension savings. Although natural, it can be unnerving and cause you to worry about how your pension is invested. It's important not to panic as though uncomfortable, this is a normal part of long-term investing.
When looking after your pension during volatility, you may find it helpful to: