Your pension
The basic aim of the scheme is to provide a pension and lump sum upon retirement. Retirement income is made up of a pension from the Railways Pension Scheme and your basic State Pension.
This chart shows roughly what the Railways Pension Scheme aims to provide.
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Yearly pension benefits
|
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Final average pensionable pay
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10 years membership
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20 years membership
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30 years membership
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40 years membership
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£10,000
|
£833
|
£1,667
|
£2,500
|
£3,333
|
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£12,000
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£1,000
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£2,000
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£3,000
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£4,000
|
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£15,000
|
£1,465
|
£2,930
|
£4,396
|
£5,861
|
|
£18,000
|
£1,965
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£3,930
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£5,896
|
£7,861
|
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£21,000
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£2,465
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£4,930
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£7,396
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£9,861
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£25,000
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£3,132
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£6,264
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£9,396
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£12,527
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£30,000
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£3,965
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£7,930
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£11,896
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£15,861
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£35,000
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£4,799
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£9,597
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£14,396
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£19,194
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£40,000
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£5,632
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£11,264
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£16,896
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£22,527
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£45,000
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£6,465
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£12,930
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£19,396
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£25,861
|
|
£50,000
|
£7,299
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£14,597
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£21,896
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£29,194
|
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£55,000
|
£8,132
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£16,264
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£24,396
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£32,527
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£60,000
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£8,965
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£17,930
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£26,896
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£35,861
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£65,000
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£9,799
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£19,597
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£29,396
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£39,194
|
|
£70,000
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£10,632
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£21,264
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£31,896
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£42,527
|
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£75,000
|
£11,465
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£22,930
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£34,396
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£45,861
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Important notes:
1. When you take your benefits you can choose to convert some of your pension into lump sum. Each £1 a year pension will buy £12 lump sum.
2. Some members get more benefits because their section of the scheme has increased benefits because of a surplus.
3. The tax laws limit the amount of pension and lump sum you can receive without incurring tax charges.
4. If you take your benefits before age 60 they are reduced.
5. If you have a restructuring premium your benefits are worked out differently.
For more information download a
Guide for members - if your pay has been restructured (PM151)
An example of how a member's pension is worked out.
If:
- your final average pay is £25,000
- your first final average restructuring premium is £6,000 and your second is £3,000 and
- you have 30 years membership, 10 of which you have been getting your first restructuring premium and 5 of which you have been getting your second restructuring premium;
Your pension will be: £25,000 - (1½ x £4,716.40) x 30 = £8,962.70
60
Plus your restructured membership :
10 x £6,000 = £1,000
60
and
5 x £3,000 = £250
60
As you have membership before 7th April 1991, the pension worked out for this period before 7th April 1991 is increased by 5%. If this was a 17 year period this would be worked out as:
£25,000 - (1½ x £4,716.40) x 17 x 5% = £253.94
60
If your section has had further surplus distribution increases after this date your pension will be increased to reflect this. If you have extra membership because of a transfer in, you may not receive the increase on benefits for these periods of membership. You can check this with rpmi.
Your total pension will be :
£8,962.70 + £1,000 + £250 + £253.94 = £10,466.64
(£4,716.40 is the final average basic State Pension (2008/2009) used for this example).