Here’s how to apply for your pension benefits, as a preserved member of the Fund.
If you’re no longer paying into the British Transport Police Force Superannuation Fund (BTPFSF) and you have not taken your pension, you’re classed as a preserved member.
You might be a preserved member if you still have savings in the Fund, but you might have previously:
- changed job or employer
- decided to opt out of the Fund, or
- stopped making contributions to the Fund
But it’s important to remember that as a preserved member, you still have savings in the Fund.
The savings you have built up during the time that you were contributing to the Fund are still yours, and they will stay preserved in the Fund until you’re ready to take them. That’s why it’s essential that you know what to do when you’re ready to take them.
As a preserved member of the Fund, you are a member of the defined benefit (DB) scheme, and your pension will be in one (or more) of the following 3 sections:
- the 1970 section – for members who joined before 1 April 2007
- the 2007 section – for members who joined between 1 April 2007 and 31 March 2015, and
- the CARE section – for members who joined on or after 1 April 2015
If you’re not sure which Section of the Fund you’re in, it’s easy to check when you log into your myFund account, so make sure to register for a myFund account if you haven’t already.
The information in this blog applies to all Fund members, but depending on the Section you are a member of, taking your pension benefits may work slightly differently - we’ll let you know where that applies.
Before you apply to take your pension benefits
Before you apply to take your preserved pension, it’s really important that you understand all of the options available to you. Here’s a step-by-step guide to help you do that.
First, decide when you want to retire
As a preserved member, you can choose when you want to take your pension benefits. You can either take:
- Normal retirement
Your Normal Retirement Age (NRA) is the Pension Age that is set by the Fund rules. This is usually between 55 and 65 years old, depending on the section of the Fund you’re a member of, and its Normal Retirement Age (NRA). You can check your NRA in your Member Guide, which is available in the My Library area check your NRA in your Member Guide, which is available in the My Library area of your myFund account.
- Early retirement, taking your pension benefits before your NRA
You may be able to start taking your pension before you reach you Normal Retirement Age (NRA). This is known as early retirement and is usually allowed for members aged over 55, increasing to age 57 in 2028. If you have protected pension age, you may be able to apply for an early retirement benefit between 50 and 55. You can check your earliest retirement age in your Member Guide.
- Late retirement, taking your pension benefits after your NRA
As a preserved member, you may need to take your benefits at your normal retirement age OR, depending upon the rules of your Section, you may be able to opt to put off taking your pension, up to the age of 75. You can learn more in your Member Guide.
Then, request an estimate of your pension benefits
An estimate is one of the most important tools to have at hand when you’re planning to take your pension benefits. It shows you what your pension benefits might be worth when you want to take them, and the different options you have for payment. You can request as many online estimates, as often as you need, for free in your myFund account.
After that, review your investment choices before you take your pension benefits
It’s a good idea to review your investment choices before you take your pension benefits if you are a DB member who paid Additional Voluntary Contributions (AVCs) while you were paying into the Fund.
Your AVCs are paid into your Personal Retirement Account (PRA). This is an additional pot of money, held separately to your main DB pension with the Fund. Your PRA is invested in a range of funds, with the aim of helping it grow over time.
There are 2 AVC arrangements in the Fund:
The value of your investments can go up, or down. So it’s important that you check your investments regularly, and make sure they’re still working for you.
If you want to make any changes to your investment funds, you will need to request these in your myFund account before you return your Retirement Options forms. There’s more information on completing your Retirement Options forms below.
Take your time to get more information about your options
If you’d like more detailed information on your options for payment your pension benefits and how your membership works, read your Member Guide in your myFund account. Your Member Guide explains the options available to you, in line with the rules for your Section of the Fund.
You may want to take advice on your options
Choosing how you want to take your pension benefits is a big decision. For many of us, our pensions are one of the most important financial assets that we have.
To help you make the right choice for your personal circumstances, you may want to get guidance from a pension expert or financial adviser. There is free, and paid for financial advice available to help you. You can find a list of trusted financial advisers and pension experts on the Need more advice? page.
Pension Wise offers free impartial guidance to explain the options to take money from defined contribution pension pots. If you paid in AVCs while you were working, and you’re over 50, you can get free impartial advice on your options to take your AVCs pension benefits from Pension Wise, as AVCs are classed as DC pension benefits. You can find out more information, and book your free appointment on the Pension Wise website.
Beware of pension scams
Pension scams are still on the increase, and as you’re approaching retirement, you may be more vulnerable to scams. If you’re contacted out of the blue about your pension, the safest thing to do is reject it or hang up straightaway. It’s really important that you stay on your guard to help protect your pension.
You can find 10 tips to help you spot the signs of a scam and more information on the pension scams page.
How to start your application to take your pension benefits
Here’s what to do when you’re ready to take your pension benefits, and what will happen next.
You should apply to take your pension benefits 3 months before the date you want your payments to start.
How to start your application
To start your application, get in touch with the Fund get in touch with the scheme administrator, Railpen.
It’s a good idea to get an estimate of your pension benefits 3-6 months before you start your application. This is so that you can see how much you might get, if you take your pension benefits at your chosen retirement date, and the options available to you. If you haven’t had an estimate, it’s quick and easy to request one in your myFund account.
If you have paid into AVC Extra, you must get an estimate of your pension benefits before you start your application to take them.
- Tell Railpen your retirement date
When you’ve reviewed your estimate, you’ll need to tell Railpen the date that you want your payments to start, this is known as your retirement date. You can contact Railpen using the details on the contact us page, and they will start your application for you.
- Complete your Retirement Options form
When Railpen has started your application, they will send you a Retirement Options form to complete and send back.
Your Retirement Options form will show your retirement date, details of your options, and the amount that you might get. It’s important that you take the time to read it carefully, and take financial guidance or advice. There’s more information about completing your Retirement Options form below.
You won’t get a final confirmation of the pension benefits you will get until you have returned your completed forms and Railpen has processed your retirement, so you may want to hold off on making any big purchases.
Completing your Retirement Options form
When you’ve decided how you would like to take your pension benefits, it’s time for you to complete and return your Retirement Options form.
You should return your completed form at least 1 month before the date that you want to take your pension benefits, known as your retirement date. If forms are returned late, payments may be delayed.
If the bank account that you would like your pension benefits to be paid into is an overseas bank account, there may be another form for you to fill in. Railpen will let you know if this applies to you.
If you’d like more guidance on completing your Retirement Options form, watch the short video in your video library, which explains the information on the Retirement Options form in less than 5 minutes. It’s worth sparing a short amount of time to watch the video, and make sure you understand how the form works, before you complete it.
More information on the application process
If you’d like more information on how to apply to take your pension benefits, including a summary which shows how the process works from start to finish, take a look at your member website. You’ll find a dedicated section on planning for retirement to help you take your pension benefits.
