Whilst Network Rail operates both the RPS60 and RPS65 pension schemes, the RPS60 is closed to new members.
Entry into the RPS65 is generally available by a one-off invitation to Network Rail employees who have completed five years continuous service with the Company.
However, if you were a member of the RPS with your previous employer you may be entitled to join the RPS65 immediately upon commencement of employment with Network Rail.
To be eligible to join the RPS65 immediately you must be either:
- a former Protected Member of the RPS and electing to join the Network Rail Section of the RPS within six months of leaving your previous RPS membership;
- a former Non-Protected Member of the RPS and electing to join the Network Rail Section of the RPS within one month of leaving your previous RPS membership.
This easy to follow decision tree will assist you in knowing if you are eligible to join the RPS65 immediately.
For information on the types of RPS Membership please see the RPS Membership definitions section.
How to join?
New employees can exercise their right to join the RPS65 by completing the Notice of Election Form which will have been issued alongside your Network Rail Contract of Employment.
If you aren’t eligible to join the RPS65 immediately upon commencing employment with Network Rail, you will receive a one-off invitation to join the RPS65 upon completion of five years continuous service with Network Rail.
An RPS65 invitation letter and option form will be sent to your home address approximately three months prior to your five year continuous service date. A further reminder invitation letter will be sent to your home address by Recorded Delivery one month prior to your five year continuous service date.
It is important that you ensure that the current address details that Network Rail hold for you are correct.
If you do not elect to join the RPS65 at your five years continuous service date, you will not be given another opportunity to do so.
How much does it cost?
As an RPS member the amount you pay is dependant on which RPS scheme you are in and your membership status.
Network Rail also contribute a percentage your RPS pension benefits.
RPS60 Contribution Rates:
RPS65 Contribution Rates:
RPS contributions are fixed as at 1st July each year, based upon your RPS Section Pay on 1st April of the same year.
RPS Section Pay is your Pensionable Pay on 1st April with a reduction applied for the Basic State Pension as at 1st April (BSP Deductor).
If there are any changes to your salary throughout the year, they will be captured from the following July.
The amount of contributions you pay will only change during a year should you change your working hours at Network Rail.
RPS contributions are based on Section Pay rather than your Network Rail Headline Salary.
Section Pay is calculated as your Pensionable Pay less a Basic State Pension Deductor (BSP Deductor).
For RPS60, the BSP Deductor is 150% of the Basic State Pension.
For RPS65, the BSP Deductor is 75% of the Basic State Pension.
The RPS contribution rates are reviewed by the Trustee and the Scheme Actuary every three years and you will be advised in advance of any changes.
Tax Relief
One of the biggest benefits of paying into the RPS pension scheme is that your contributions are eligible for tax relief.
RPS contributions are automatically deducted from your pay before tax. This means you only pay tax on your take-home pay, which doesn’t include your pension contributions. So you are getting tax relief on your RPS contributions and reducing the amount of tax you pay.
SMART Contributions
SMART is a salary sacrifice arrangement and is how Network Rail deducts RPS contributions from your pay, allowing you to pay less in National Insurance Contributions.
For RPS65 members, SMART is mandatory.
For RPS60 members, you can opt out of SMART if you wish.
Paying RPS contributions via SMART does not affect your pension benefits. It means that:
- Network Rail pay your RPS contributions on your behalf;
- your contractual pay is adjusted to reflect this change; and
- your take-home pay goes up because you are paying less National Insurance Contributions.
SMART does not impact your salary for the purposes of mortgage applications, State benefits or death in service life cover.