Welcome to your retirement!
 
If your working days are over – or almost over – and you’re ready to reap the rewards of your pension contributions, it’s important to know what happens next.

Claiming your pension
The normal retirement age for members of the Scheme is 63 for members of the ESPS categories of the Scheme or 65 for members of the Retirement Balance (RB) Plan. Once you reach this age, you can apply to start taking your pension.

How are my benefits paid?
ESPS categories – if you’re a member of the ESPS categories of the Scheme, your pension will be paid in regular instalments direct to your bank/building society account by your pension administrator, Railpen.

Your cash lump sum will be paid within ten working days of retiring.

However, you could instead choose to buy your pension from an insurance company, take your retirement balance as a further cash lump sum (subject to tax) or transfer it to another pension provider. You can learn more about these options on the Pension Wise website.

Tax on your pension 
Your pension – like any other income – is taxed within the Pay As You Earn (PAYE) scheme. 

Tax is taken from your pension payment before you receive it, based on a tax code supplied by HM Revenue & Customs (HMRC).
 
If you have any queries about your tax code, you should contact your tax office directly. For UK tax, telephone 0300 200 3300 and quote your National Insurance number.

Pension increases
Each April, you receive an increase to your benefits in line with inflation. This is based on the Retail Prices Index (RPI) figure for the previous September. 

Benefits after death
The Scheme not only provides you with an income for retirement, but can also help provide for your loved ones if you die.
 
A number of benefits may be payable to your dependents, including one or more of the following:

• a spouse’s pension
• a dependent's pension
• Children’s pensions
• A lump-sum

The specific benefits your dependents receive depend on your membership type, so you should check your Scheme booklet or contact the pension administrator, Railpen, for more information. 

Changing your bank/building society details
You should tell the pension administrator, Railpen, about any changes in your circumstances as soon as possible.

If you move house or change your bank account, please log into or register for a myESPS account to update your details.

Any questions?
If you have any queries about your pension, you can contact the pension administrator, Railpen. Email enquiries@railpen.com or telephone 02476 472 544.