Main benefits
- An option to receive a one-off tax-free cash lump sum, when you retire
- A pension based on your Plan’s value
- Life cover if you die in service
- An incapacity pension if you can’t work because of ill health
- Benefits for your dependants if you die
- A pension for dependants (optional) in the event of your death
- Additional voluntary contributions (AVCs) (optional)
Retirement options
Your retirement income depends on the final value of your pension and any AVCs you may have. Your options could include:
- a tax-free lump sum up to 25% of your retirement balance
- using your balance – minus any lump sum taken – to buy a pension either through the Plan or an insurance company, or
- taking your balance – minus any lump sum taken – as another cash lump sum, subject to tax
early or late retirement
- an ill-health pension
- transferring your benefits to another pension arrangement if you want to take your pension using options which are not available through the scheme. You are strongly advised to get independent financial advice first.
Railpen will explain your options as you get closer to your Normal Retirement Date, and you will receive an annual benefit statement..