New pension modeller developed for client
GAD developed a pension benefit modeller to support the Nuclear Decommissioning Authority as it undertook a pension reform programme.
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We supported the Nuclear Decommissioning Authority (NDA) during its pension reform programme.
The NDA commissioned GAD to build a pension benefit modeller to illustrate to its members what the scheme reforms will mean to their retirement benefits.
Pension changes
The pension changes are in line with people in the public sector moving from final salary schemes to career average schemes.
The Energy Act 2023 and necessary secondary legislation provided the NDA the ability to work with the trustees of the affected pension schemes to reform those schemes.
Schemes were set to begin April 2024 to affect NDA group employees who are active members of the final salary pension schemes:
- Combined Nuclear Pension Plan
- Magnox Electricity Supply Pension Scheme
Pension amounts built up before the career average schemes are introduced will not be affected.
Implementing changes
Around 6,500 scheme members will be impacted, and the NDA is working with GAD and other advisers to implement the changes.
The aim of the reform programme is to ensure better equity across the public sector. The NDA anticipates it will deliver savings to its budget which will be recycled to support the furtherance of decommissioning the UK’s nuclear legacy.
Government policy is for final salary pension schemes in the public sector to be reformed to a career average revalued earnings-based scheme.