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Pension and lump sum

There are four arrangements within the Research Councils' Pension Scheme (RCPS): Classic, Classic Plus, Premium and Nuvos. Classic, Classic plus and Premium are all final salary schemes. Nuvos is a career average earnings scheme.

Members are able to vary their Pension Lump Sum when taking their pension benefits.

Please use the lump sum calculator (Excel, 43KB) - opens in new window - to see what variations you may be entitled to.

Classic

The Classic scheme is an 80th scheme with a scheme pension age of 60. The Classic scheme closed to new members with effect from 1 October 2002.

If you are in Classic, on retiring you will receive a tax free lump sum and an annual pension, normally paid monthly, which is increased each year by the Consumer Price Index (CPI). Both are based on the length of reckonable service; the amount of service used to calculate the award and level of pensionable pay; the salary used to calculate the award.

The pension is 1/80th of Pensionable Pay x Reckonable Service. The lump is normally three times the annual pension.

There is an option to convert some or all the lump sum to extra pension, this is called Inverse Commutation (PDF, 215KB) - opens in new window.

Classic Plus

Classic Plus is a hybrid of the Classic and the Premium schemes, it has a scheme pension age of 60. Service prior to 1 October 2002 is treated as Classic, after this date it is treated as the Premium scheme.

If you are in Classic Plus, on retiring you receive an annual pension and a tax free lump sum based on your service prior to 1 October 2002; for service after this date you receive a pension with the option of converting some of the pension to a tax free lump sum at the rate of £1 of pension surrendered to receive £12 of lump sum. The pension is paid monthly and is increased each year in line with the Consumer Price Index.

Premium

The Premium scheme is a 60th scheme and it is for members that joined between 1 October 2002 and 30 July 2007. The scheme pension age for Premium is 60.

If you are in Premium, when you retire you will receive an annual pension, normally paid monthly, which is increased each year in line with the Consumer Price Index based on the length of reckonable service; the amount of service used to calculate the award and level of pensionable pay; the salary used to calculate the award.

The pension is 1/60th of Pensionable Pay x Reckonable Service.

There is an option to convert part of the pension to a lump sum at the rate of £1 of pension surrendered to receive £12 of lump sum.

Nuvos

The Nuvos scheme is a career average scheme and it is the current scheme for new members with effect from 31 July 2007. The scheme pension age for Nuvos is 65.

If you are in Nuvos when you retire you receive an annual pension, normally paid monthly, which is increased each year in line with the Consumer Price Index based on the Nuvos pension built up over the course of your Nuvos scheme membership.

The pension is 2.3% of Pensionable earnings for each scheme year. The Nuvos scheme year runs from 1 April to 31 March.

There is an option to convert part of the pension to a lump sum at the rate of £1 of pension surrendered to receive £12 of lump sum.