RPMI

Applying for your benefits

When the time comes for you to take your pension benefits, there is a very straightforward process to follow and rpmi always aims to process your benefits quickly and accurately. If you are thinking of retiring you should follow these simple steps:

• Check with your employer or rpmi to find out if you are eligible to start taking your benefits.
• Make sure you start to plan well in advance so that your benefits can be paid to you when you want them.
• Approximately 12 weeks before you want to start taking your benefits, contact your employer and ask for an estimate of your benefits.
• Approximately eight weeks before you want to start taking your benefits complete an ‘Application for benefits’ form with your chosen retirement options and give it to your employer to complete salary information and authorise.
• Approximately six weeks before you want to start taking your benefits send the form to rpmi (Please note that your employer may do this on your behalf).

What happens next?

We process the application to make sure any lump sum is paid on your first day of retirement and your pension will be paid in the next available payroll after that date. You should receive a letter confirming these details prior to your retirement date.

Types of retirement

There are different types of retirement, depending on your circumstances.

• Early retirement – This type of retirement is for anyone taking their benefits before they reach normal retirement age, which for the Railways Pension Scheme is age 60. Members who take this type of retirement will have their benefits reduced to take into account the fact that their pensions are being paid early.
• Normal retirement – This type of retirement is for anyone taking their benefits on or after their 60th birthday. If a member leaves employment on or after their 60th Birthday they must start to receive their benefits and cannot defer payment until a later time. Please note, however, that for some sections the normal retirement age is 65 so you are advised to check with your employer, which age applies for you.
• Ill health retirement – This type of retirement is for any member who is unable to work due to illness. There are strict criteria governing the payment of Ill health pensions, which are stated in the rules and on the ‘Application for incapacity benefits’ form.
• Taking benefits whilst remaining in service – Introduced on 6 April 2006 as part of the Finance Act 2004, this type of retirement is entirely at the discretion of your employer. If allowed, the member may claim their benefits but continue working for their employer. These benefits can only be paid if the employer agrees, to members aged 55 years or over. Any member who chooses to take their benefits whilst remaining in service will lose their right to be treated as an active member and will be treated, in Scheme terms, as a pensioner.

It should also be noted that for any member who takes this option who is under the normal retirement age for the Scheme, they will have their benefits reduced in accordance with cost neutral retirement factors.