Your benefits
When you retire you will be entitled to take your preserved benefits as a pension and you may also choose to receive a tax-free lump sum.
If you have preserved benefits in the Railways Pension Scheme please read the important information at the bottom of this page about applying for your benefits early.
Members may be able to take their benefits from an earlier age than 55*.
If a member was active in any section of the Railways Pension Scheme (including Industry Wide Defined Contribution) on 5 April 2006 (unless they subsequently opted-out of membership of a section of the Scheme and gave up the right to claim their Scheme benefits before age 55) they have the right to apply for their Scheme benefits before age 55* if they wish.
If you have benefits in more than one section and wish take benefits before age 55, all scheme benefits MUST come into payment at the same time.
The right to take benefits before age 55 applies to all membership within the Scheme and is not restricted to membership in individual sections.
*Scheme benefits are only payable if certain conditions are satisfied, for example they are at least equal to the minimum level set by the government and, in the case of preserved Scheme benefits, the member needs the Trustee's approval before they can be paid.
Your benefits are worked out based on your pensionable pay on the date you left the scheme.
You will also continue to be covered for dependants' benefits, although the lump-sum death benefit is likely to be a lot less than when you were a member.
If you wish to leave your benefits in your Railway Pension Scheme they will increase each year in line with inflation.
Important information for members with preserved benefits in the Railways Pension Scheme
If you are a member with preserved benefits the rules for your scheme may allow you to retire early and claim your pension benefits as described above. However, preserved benefits can only be paid early with the approval of the Trustee Company or Pensions Committee if there is one. Applications for early payment before your normal retirement age must be referred to your Pensions Committee or the Trustee Case Committee, for a decision.
If you apply for early payment of your benefits your case will be referred to the next available Pensions Committee meeting after your Application for Payment of Preserved Benefits form is received. This process can take a little while so you may wish to build this into your plans. We will tell you when the Pensions Committee meets if you apply to us for early payment.
If the Pensions Committee does agree to your benefits being paid early, they will be reduced because they are being paid early and therefore for longer. You can check how much the reduction will be before you take your benefits.