GAD develops bespoke benefits modeller
GAD has built a pension benefit modeller to support the Nuclear Decommissioning Authority as it undertakes a pension reform programme.
Credit: Shutterstock
The Government Actuary’s Department (GAD) has supported the Nuclear Decommissioning Authority (NDA) as it undertakes a 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.
The pension changes are in line with people in the public sector moving from final salary schemes to career average schemes. The new scheme details have been agreed and include provision for retirement on full pension before State Pension age.
April deadline
The Energy Act 2023 and necessary secondary legislation provides the NDA with the ability to work with the trustees of the affected pension schemes to reform those schemes.
Legislation is being introduced to commence the schemes from April.
Credit: Jakob Madsen, Unsplash
Benefit modeller
The changes will 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.
Around 6,500 scheme members will be impacted, and the NDA is working with GAD and other advisers to implement the changes.
Updating pensions
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 UKs nuclear legacy.
More than 4 million public sector workers have already moved to new pension arrangements. Government policy is for final salary pension schemes in the public sector to be reformed to a career average revalued earnings-based scheme.
Actuary Simon Gray who is leading the project for GAD said: “We have developed a specific benefits model for the Nuclear Decommissioning Authority. This will help illustrate to scheme members how the changes will affect them.”