Active Member Examples

Saran is 64 and in the RCPS Classic scheme, they joined in 1984 and will have accrued 41 years service by September 2026. Their accrued pension is £16,400 p.a. with a tax free pension lump sum of £49,200 (based on a final pensionable earnings of £32,000). Although the scheme pension age in Classic is 60 they chose not to retire and continued working. Saran plans to retire at 66, their State Pension Age.

Non-Reform

Had Saran remained in Classic until age 66 they would have accrued a pension of £17,200 p.a., and a standard lump sum of £51,600.

Pension per annum	£17,200
Lump sum	£51,600

Reform

They join the Alpha scheme and work for two more years, during which time they accrue an Alpha pension of £1,530 p.a. (this assumes no pay rises, earnings across both years are £32,000 and CPI is 2%). When they retire they will have two parts to their pension; Classic pension £16,400 p.a. and Alpha pension of £1,530 p.a.; total £17,930 plus the Classic pension lump sum of £49,200.

Classic Pension	£16,400
Alpha Pension	£1,530
Total Pension	£17,930
Lump Sum	£49,200

If Saran wanted a lump sum of £51,600, with £2,400 created from their alpha membership*, the alpha pension would reduce by £200 p.a., to £1,330 p.a. The total benefits would then be:

Classic Pension	£16,400
Alpha Pension	£1,330
Total Pension	£17,723
Lump Sum	£51,600

*the commutation rate is £1 of pension to £12 lump sum.

Reg is 57, joined Classic in 1989 and will have accrued 36 years service by September 2026. His final pensionable earnings (final salary) is £42,000 which means he’s accrued a pension of £18,900 p.a. plus a pension lump sum of £56,700. Reg plans to retire when he’s 60, his pensionable earnings are £43,000.

Non-Reform

If Reg had remained in the Classic scheme to age 60 based on 39 years service and pensionable pay of £43,000, the benefits would be:

Pension per annum	£20,962.50
Lump sum	£62,887.50

Reform

He is enrolled in Alpha and during the next three years his average earnings are £43,000, with 2% revaluation applied each year he will have accrued an Alpha pension of £3,114 p.a.

Reg decides to retire at 60 and as he is taking his Alpha pension before State Pension Age it is reduced to reflect the early payment, to £2,179 p.a. Reg’s Classic benefits retained their final salary link making his Classic pension £19,350 p.a. by age 60 (pension lump sum of £58,050), based on a final salary of £43,000. His combined Classic and Alpha benefits are therefore:

Classic Pension	£19,350
Alpha Pension	£2,179
Total Pension	£21,529
Lump Sum	£58,050

If a lump sum of £62,887.50 is taken, the benefits would be:

Classic Pension	£19,350
Alpha Pension (Pension exchanged for Lump Sum	£1,775.87
Total Pension	£21,125.87
Lump Sum	£62,887.50

Reg does not have to take his Alpha pension at age 60, he could leave it until his State Pension Age, during which time it would be increased by CPI each year.

As is always the case, the ‘extra lump sum’ commutation rate of 1:12 ends up, generally being less attractive, for a pension that is paid for more than 12 years. Although lump sums are paid tax free and pensions are classed as taxable income.

Olive is 50 and been in Nuvos since 2010, she has accrued a pension of £23,800 p.a after 16 years membership. Her pensionable earnings last year were £69,000. Olive plans to retire at age 65, the normal Nuvos scheme pension age. Over the next 15 years her average pensionable earnings are £72,000 (she isn’t anticipating much pay growth).

Non-Reform

If she had remained in Nuvos she would have theoretically accrued a pension of £64,727 p.a., however Nuvos has a limit for the pension accrual, which is 75% of the highest final pensionable earnings, which, including CPI uplifts we will assume could be £78,000 (this could be higher or lower depending on future inflation). If it was £78,000, the Nuvos pension would then be capped at final earnings of £58,500 p.a.

Pension per annum (potentially capped)

£58,500

Reform

Olive joins Alpha and assuming the same pay growth (as Non reform example) and CPI-linked revaluation of 2% this would result in an Alpha pension of £29,465 p.a. Olive’s state pension age is 67 and as she is taking her Alpha pension early, at age 65, it is reduced to £26,430 p.a.

From 2027 to 2041 Olive’s deferred Nuvos pension is also uprated by inflation, 2% annually, increasing the pension to £33,200 p.a. So total pension:

Nuvos Pension per annum	£33,200
Alpha Pension per annum	£26,430
Total Pension per annum	£59,630

The unknown factors are future pay growth and future inflation (CPI), especially over a longer period, like this example, which makes it difficult to accurately forecast what the future pension may or may not be. Olive may decide not to take her Alpha pension early thereby avoiding the actuarial reduction.

Barry is 22 and joined the organisation a year ago and was enrolled in Nuvos. His earnings for the first 12 months were £27,000 and using the 2026 CPI-linked revaluation of 3.8% results in a pension accrual of £644 p.a. Normally RCPS Nuvos has a 2 year minimum qualifying period but this does not apply due to the RCPS being transferred to the CSPS, which protects Barry’s accrued Nuvos pension.

Non-Reform

If he had remained in Nuvos for the next 10 years, during which time his earnings rise by approximately £1,000 p.a. to £37,000 (and future CPI increases after 2026 assumed 2%), the total Nuvos accrued pension would be:

Nuvos Pension per annum (payable age 65)

£9,092

Reform

He joins Alpha and stays with his employer for 10 more years, during which his average annual earnings increase the same as above, resulting in an Alpha pension of £8,286 p.a. (this assumes future CPI increases of 2% for each year). His accrued Nuvos pension has also been uprated by 2% annually. Barry’s total accrued pension is therefore:

Nuvos Pension per annum (payable age 65)	£785
Alpha Pension per annum (payable at State Pension Age 68)	£8,286
Total	£9,071

Barry leaves the organisation aged 32, his pensions are preserved (also called deferred) and both continue to attract annual inflation-linked increases. He can leave all his pension to State Pension Age or take the Nuvos element from age 65 and then Alpha at 68. Or he could take all of it after he reaches 58 (the minimum pension age), if he does take it early it would be reduced for early payment, by around 5% per year.

Alex is a Classic member with 25 years’ service by September 2026. His pay in September 2026 is £28,000. Alex plans to retire when he’s 68 (in 2049).

If Alex had remained in Classic for the 23 years (to 2049), where his final earnings are £45,000, the total amount of Classic pension accrued (limited to maximum of 45 years) would be £25,312.50 p.a. (with standard lump sum of £75,937.50). The service over 45 years would have provided an additional service payment (tax free lump sum) of £5,062.50 so total lump sum of £81,000.

Non-Reform

Pension per annum	£25,312.50
Lump sum	£81,000.00

Reform

He is enrolled in Alpha and during the next 23 years his earnings steadily increase from £28,000 to £45,000. Assuming a 2% revaluation applied each year he will have accrued an Alpha pension of £24,621 p.a. by 2049. The Classic element (25 years and pensionable pay of £45k) would be pension £14,062.50 p.a. plus a standard lump sum of £42,187.50. The total pension would be:

Classic pension per annum	£14,062.50
Alpha pension per annum	£24,621.00
Pension per annum	£38,683.50
Lump Sum	£42,187.50

If a lump sum of £81,000 is taken by giving up some Alpha pension, the benefits would be:

Pension per annum	£36,292.46
Lump Sum	£81,000.00

Linda is a member of Nuvos with a final salary transfer in of 9 years; where the transfer was from another public service pension scheme. Linda’s Nuvos accrued pension to 30 September 2026 amounted to £19,000 p.a. Linda will be 65 in 2034 and Linda’s pensionable earnings in 2026 amount to £49,000. Linda plans to retire at age 65.

Non-Reform

If Linda had remained in Nuvos until 2034, salary increased gradually from £49,000 to £55,000 (for last 3 years) assuming future 2% CPI increases, the total pension accrued would be:

Nuvos Pension payable age 65	£33,788
Final salary element (9 years x £55k / 60) age 65	£8,250
Total (age 65)	£42,038

Reform

Linda is enrolled in Alpha, her salary increases gradually from £49,000 to £55,000 (for last 3 years) assuming future 2% CPI increases the total pension accrued and payable at 65 (Alpha element actuarially reduced by 10% due to being paid early, assuming State Pension Age of 67) would be:

Alpha element (£10,094 less 10%)	£9,084
Nuvos element	£23,017
Final salary element	£8,250
Total (age 65)	£40,441

Linda could decide to leave her Alpha element to age 67 to avoid the 10% actuarial reduction. If she did then the total pension from age 67 would be £41,451 p.a. (but this doesn’t account for inflation-linked increases that would be applied to the Nuvos and Final salary elements from age 65).

Rob is in Premium, he was born in 1970, and has 21 years service, from 1 October 2005 to 30 September 2026. His pensionable pay in 2026 amounts to £39,000 and Rob wants to partially retire at age 60 (reference Premium membership only) by reducing his hours to 18.5 per week.

Non-Reform

If Rob had remained in Premium, with salary gradually increasing from £39,000 to £42,000 at age 60 (2030). Assuming £42,000 is the best pensionable pay, the partial pension would be £17,500 p.a. (25 years x £42k / 60).

Rob carries on in Premium to state pension age – assuming 67 (2037). Pay gradually increases so best pensionable pay (FTE) in 2037 amounts to £58,000, so additional pension (based on 18.5 hours since partial retirement) at age 67 would be £3,383 p.a.

Partial pension (with 7 years of assumed 2% CPI increases)	£20,102
Additional pension due on full retirement	£3,383
Total pension (age 67)	£23,485

Reform

Rob moves to Alpha and then partially retires at age 60. The Premium partial pension would be £14,700 p.a. (£42k x 21 years / 60). With assumed 2% CPI for 7 years, this would then amount to £16,885 p.a. in 2037. Taking into account part time pensionable earnings from 2030, the Alpha accrued pension from 2026 to 2037 assuming gradual increase of salary (as detailed above) and 2% CPI increases, would be £8,130 p.a. The total pension would be:

Partial pension (with 7 years of assumed 2% CPI increases)	£16,885
Additional Alpha pension due on full retirement	£8,130
Total pension (age 67)	£25,015