network rail pensions

Hi, I'm just a out to begin my career at network rail working as an operative on track maintenance I understand there are 3 pension schemes was wondering which is the best one out of the 3.Also regarding the generous company bonus scheme does it exist? If so how does it work? Thanks

Firstly I am not able to give specific advice on pensions. You MUST seek independent advice on pension matters. However Network Rail operate the following pension schemes.

Network Rail Railway Pension Scheme (RPS)
If you are transferring into Network Rail from another part of the rail sector and have been a member of the Railway Pension Scheme (RPS) previously you should be able to transfer in your RPS pension from your previous employer. The NR Section of the RPS scheme is generally available to NR staff who have completed five years continuous service within the organisation.

Network Rail Defined Contribution (NRDC)
The NRDC scheme was set up on 1 April 2004 and is available to all new and existing employees under age 75. New employees (except those who are members of the Railways Pension Scheme being transferred under TUPE regulations to NR or those who have completed an Application Form to join the CARE Pension Scheme) are contractually enrolled into the NRDC from their first day of employment.

Career Average Revalued Earnings (CARE)
CARE was set up in November 2008 and is one of three company pension schemes operated by Network Rail. New and existing employees under age 65 can apply to join CARE by completing an application form.

http://www.mynrpension.co.uk/

https://www.pensionwise.gov.uk/en

https://www.moneyadviceservice.org.uk/en

The General Bonus scheme was renamed Annual Performance Related Pay Scheme in 2018. Basically each Route has a scorecard regarding performance etc. These are assessed by a remuneration committee that then sets any possible payment based on your substantive salary, usually calculated at the end on March.

High Dyke said:

The General Bonus scheme was renamed Annual Performance Related Pay Scheme in 2018. Basically each Route has a scorecard regarding performance etc. These are assessed by a remuneration committee that then sets any possible payment based on your substantive salary, usually calculated at the end on March.

Click to expand...

Thank you very much for your help I will seek some advice and ask around when i start work which is the best pension to go for. As well as looking into it with more detail l. I'm guessing it's based on performance and attendance and so forth the 'annual performance related pay' is/can it be a good bonus?

Philip summ said:

Hi, I'm just a out to begin my career at network rail working as an operative on track maintenance I understand there are 3 pension schemes was wondering which is the best one out of the 3.Also regarding the generous company bonus scheme does it exist? If so how does it work? Thanks

Click to expand...

Hi, just wondering what decision you made as to which pension to go for?

I believe as a new starter you can opt for CARE or NRDC and then after 5 years may have the option to over to the favoured RPS, interesting to know which you sent for and the reason

Thanks

High Dyke said:

Firstly I am not able to give specific advice on pensions. You MUST seek independent advice on pension matters. However Network Rail operate the following pension schemes.

Network Rail Railway Pension Scheme (RPS)
If you are transferring into Network Rail from another part of the rail sector and have been a member of the Railway Pension Scheme (RPS) previously you should be able to transfer in your RPS pension from your previous employer. The NR Section of the RPS scheme is generally available to NR staff who have completed five years continuous service within the organisation.

Network Rail Defined Contribution (NRDC)
The NRDC scheme was set up on 1 April 2004 and is available to all new and existing employees under age 75. New employees (except those who are members of the Railways Pension Scheme being transferred under TUPE regulations to NR or those who have completed an Application Form to join the CARE Pension Scheme) are contractually enrolled into the NRDC from their first day of employment.

Career Average Revalued Earnings (CARE)
CARE was set up in November 2008 and is one of three company pension schemes operated by Network Rail. New and existing employees under age 65 can apply to join CARE by completing an application form.

http://www.mynrpension.co.uk/

https://www.pensionwise.gov.uk/en

https://www.moneyadviceservice.org.uk/en

Click to expand...

Hi,

Is the ‘Brass’ pension not available anymore?
I’ve paid into it for years and found it to be an extremely good pension.

Yes brass is still open, but you’ll need to serve your five years in the basic pension prior to moving to the RPS, and Brass.

Brass like you say is a extremely good add on, very much recommend to put in as much as you can afford each month.

Tom Quinne said:

Yes brass is still open, but you’ll need to serve your five years in the basic pension prior to moving to the RPS, and Brass.

Brass like you say is a extremely good add on, very much recommend to put in as much as you can afford each month.

Click to expand...

Thanks.
Yes I lump a good whack into it each month. It’s a no brainier as you only get taxed on what is left after you’ve paid Brass. Tax free saving.

BRASS as others have mentioned is still part of the Railways Pension Scheme, albeit nowhere near as good as it once was.

It's an Additional Voluntarily Contribution that buys units in an investment fund, there are a mix of funds to choose from although most people will be in the default target retirement age funds which reduces risk as the expected retirement age is approached.

BRASS used to be an easy choice before 2009 as you could, at a rate of 12 to 1, use BRASS funds to buy additional index linked annual pension (caveat of the additional income dies with you iirc) or take it as a lump sum at retirement. Note:- The only thing you can do at the moment is commute annual index linked pension to lump sum at 12 to 1 and BRASS funds can either be taken as a lump sum or used to buy an annuity from an insurance company.

For those paying in earlier, unsure of the dates, and protected members there were matched contributions as well so if you paid in 5% the company would match that up to a certain point. Essentially it was free pay rise for those who started paying into BRASS at the right time.

If you started paying in after 2009, non-protected member etc, it's just a run of the mill additional voluntary contribution scheme like you find with many other companies.

Positive thing about paying into BRASS is that it's simple and comes off payroll before National Insurance so could save you 12% if coming from income within the basic rate band or 2% if coming from income that would be taxed at a higher rate. Note:- Income Tax relief is the same for any type of pension public, private, defined benefit or defined contribution.
Negatives:- Limited investment fund choices, access to BRASS tied to main scheme retirement age therefore not accessible unless you pull the trigger and activate your main RPS annual pension which is subject to actuarial reduction. This makes retirement planning a bit more difficult if you don't plan on wanting to retire at whatever age it will be by the time you get there e.g. 68 for younger folk.