The RPS is a defined benefit (DB) pension scheme, which means that your pension is calculated based upon your scheme service, Pensionable Pay and the scheme accrual rate, rather than being based upon how much you and Network Rail have contributed over the years.
There are some differences between the way in which RPS60 and RPS65 pensions are calculated, however the basis of the calculation is the same.
Final Average Pensionable Pay
Your Final Average Pensionable Pay is your Pensionable Pay in the 12 months preceding your date of retirement. If you have a change in Pensionable Pay part way through the 12 months, then this is reflected in the Pensionable Pay used to calculate your pension benefits. For example, if you had a Pensionable Pay of £35,000, which increased to £40,000 6 months before your date of retirement, your Average Pensionable Pay would be £37,500.
The Basic State Pension Deductor is then subtracted from your average Pensionable Pay.
For RPS60 members, the Basic State Pension Deductor is 150% of the Basic State Pension, and in the 2025/2026 tax year, equates to £13,763.10.
For RPS65 members, the deductor is 75% of the Basic State Pension, and equates to £6,881.55.
Using the example above, if an RPS60 member has an average Pensionable Pay of £37,500, £13,763.10 would be deducted to give a Final Average Pensionable Pay of £23,736.90.
Once your Final Average Pensionable Pay has been calculated, your pension can then be worked out.
RPS Pension Calculation
Using your Final Average Pensionable Pay, your Scheme Service and the Scheme accrual rate, your annual pension is calculated:
RPS0 members accrue a lump sum alongside their pension, and this is calculated in a similar way to the RPS pension, but with a different accrual rate:
Even though there is not an automatic lump sum payable for RPS65 members, you would still have the option of taking a tax-free lump sum (within limits) by either converting some of your annual pension to lump sum or using your BRASS funds to fund the lump sum.
For both RPS60 and RPS65 members, you can view the current value of your RPS pension benefits by logging in to your RPS Member Account.
Pension Restructuring Premiums
When you have a Pension Restructuring Premium, this is factored into the pension payable at retirement.
From the date that the PRP is awarded, you accrue annual pension based on the value of the PRP tier (for more details on how this works, please visit www.mynrpension.co.uk/https://www.mynrpension.co.uk/rps-pay/).
The calculation for the pension accrued from the PRP tier works in the same way:
The pension accrued from your total Scheme Service, and the pension accrued from your PRP tier, are added together to give the total annual pension payable.
If you have more than one PRP tier, the calculation works in the same way. For each PRP tier you have, the calculation for the accrued annual pension is carried out and added to the pension accrue from your total Scheme Service.