UKAEA Pensions
Options at retirement
- Allocation of Pension
- Continuing Annual Payment - Commutation
- Inverse Commutation
- Purchasing Added Years on Early Retirement
- AVC scheme
- Shift Pay Pension Savings Plan
Allocation of Pension
What is allocation?
Once you are awarded a pension on retirement (not Ill Health) or a Continuing Annual Payment (CAP) on premature retirement, or at any time thereafter, you may choose, subject to certain conditions, to give up part of that pension or CAP for all time to provide pension cover for a spouse or any other person who is wholly or mainly dependent upon you at the time of allocation and is likely to remain so in the future.
If part of your CAP is allocated, the allocation will also apply to the pension which will supersede the CAP at your normal retirement age. For further details regarding Allocation of Pension.
Continuing Annual Payment - Commutation
A continuing annual payment (CAP) is compensation which may be available if you leave service with severance or premature retirement terms. The amount of the CAP is normally equal to the annual pension which you receive when you reach normal retirement age.
What pensions increase will I receive?
Pension Increases are normally applied to CAPs once a year. If you are under age 55, the CAP will not be increased until you reach age 55 at which point the rates of pensions increase which have occurred since the beginning of the CAP will be applied.
What happens when I reach normal retirement age?
You may commute all or part of your CAP to provide an additional lump sum. Pensions Increase is not payable in respect of the CAP which has been commuted. Commuting the CAP does not affect the value of your pension, which will begin to be paid when you reach normal retirement age.
Inverse Commutation
You may be able to give up some or all of your pension scheme lump sum to increase your own pension and that of your spouse. This is known as inverse commutation. Inverse commutation may apply to:
- benefits payable at retirement
- premature retirement benefits involving payment of a Continuing Annual Payment
- preserved benefits payable at retirement age or those brought into payment early, except on medical grounds
You cannot make an option if you are retiring early on medical grounds.
You cannot make an option once the pension or Continuing Annual Payment has come into payment.
If you would like any further information about this option you should contact your Local Pensions Officer or the Pensions Administration Office, Thurso.
Purchasing Added Years on Early Retirement
You may be able to give up some or all of your pension scheme lump sum to increase your own pension and that of your spouse. This is known as inverse commutation. Inverse commutation may apply to:
benefits payable at retirement
premature retirement benefits involving payment of a Continuing Annual Payment
preserved benefits payable at retirement age or those brought into payment early, except on medical grounds
You cannot make an option if you are retiring early on medical grounds.
You cannot make an option once the pension or Continuing Annual Payment has come into payment.
If you would like any further information about this option you should contact your Local Pensions Officer or the Pensions Administration Office, Thurso.
Additional Voluntary Contributions Scheme
What happens when I retire if I am a member of the AVC Scheme?
If you are a member of the Group AVC Scheme notification of your retirement will be sent by the Pensions Administration Office at Thurso to Prudential.
What if I retire on ill-health grounds?
If you are retired on ill-health grounds the annuity from the AVC Scheme will come into payment at the same time as your pension from the United Kingdom Atomic Energy Authority final salary scheme.
How long will it take for me to receive details of the options?
Before the annuity can be set up the Prudential need to have received all of the contributions that have been deducted from your pay - depending on your date of retirement, there may be a delay before the Prudential receive your final payment to the AVC Scheme, and they are able to send you details of the main options available.
What options are available to me from the AVC Scheme?
Click here to access information about the options available.
Shift Pay Pension Savings Plan
What happens when I retire if I am a member of the Shift Pay Pension Plan?
If you are a member of the Shift Pay Pension Plan notification of your retirement will be sent by the Pensions Administration Office at Thurso to Prudential.
What if I retire on ill-health grounds?
If you are retired on ill-health grounds the benefits from the Shift Pay Pension Plan will come into payment at the same time as your pension from the United Kingdom Atomic Energy Authority final salary scheme.
How long will it take for me to receive details of the options?
Before Prudential can provide details of the options available to you from the Shift Pay Pension Plan they need to have received all of the contributions that have been deducted from your pay - depending on your date of retirement or when you ceased shift working, there may be a delay before the Prudential receive your final payment to the Shift Pay Pension Plan, and they are able to send you details of the main options available.
What options are available to me from the Shift Pay Pension Plan?
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