When can I take my brass pension?

Firstly, let’s know what the BRASS pension is, it is the British Rail Additional Superannuation Scheme. In detail, the UK rail industry's in-house additional voluntary contribution (AVC) pension scheme.

With your main defined benefit pension with your employer, you can make extra contributions to your BRASS pension. You also have the choice to take it early depending on your scheme and save more from your retirement.

How does BRASS pension work?

To apply for a BRASS pension, contact your payroll office which will start the deductions from your pay.

After joining the BRASS pension, you will need to start a personal retirement account (PRA). This will be a completely separate pot from your main pension scheme, where you will store your pay. 

Afterward, you can use the PRA to invest in different funds, which will grow over time. 

If all this sounds complicated, Then you are free to seek our financial advisors for further guidance click here.

 

Can I withdraw my pension early?

To be clear, you can withdraw anytime you want but you will not get all of the savings.

You need to create a personal retirement account to start a BRASS pension account to keep all the savings. After it stores all the savings in the account it pays you from it each time.

In addition, you can make lump sum payments yourself to your contributions and will also benefit from government tax.

After you fulfill the requirements for your BRASS pot, only then will you be able to withdraw the full benefits.

You can buy an extra pension using your pot with the section of the scheme of the same value. Also, you can take a tax-free lump sum cash equal to the value of the BRASS pot. 

Unfortunately, only The HM Revenue & Customs can decide the maximum amount allowed for lump sum cash.

Besides, you may also choose to transfer your BRASS pension pot into another scheme for further options.

After choosing another investment fund, you can use your contributions to purchase pension units. The BRASS pension also covers tax benefits, as there are no capital gains from your fund for contributions.

What age can I take my railway pension?

The eligibility age for taking your BRASS pension depends on the rules and regulations of your pension scheme. The main pension scheme will specify the rules along with the documents.

So, The main pension scheme will decide the linked BRASS contributions in the account.

Generally,  you can access your BRASS pension after it has been fulfilled, which is after the standard retirement age.

If you start taking your main scheme pension benefits you must also take your BRASS funds at the same time. 

Unless you choose to transfer your BRASS funds to another pension arrangement.

Can I transfer my BRASS pension?

If you choose not to take your BRASS funds as part of your main pension you can transfer your pot. Adding to an alternative pension, but you can only do this if you have stopped contributing to your BRASS scheme.

Depending on your circumstances, you may wish to delay taking some of your benefits for the time being. 

Besides, deciding to keep your BRASS funds invested to gain extra growth for a few years is also an option.

Alternatively, you may take your BRASS pension before your main scheme benefits as an income drawdown or an annuity. Which is not an option, unless you transfer the funds to another pension arrangement.

Transferring to an alternative arrangement could give you more options and flexibility on how and when you access your funds.

You do not have to transfer your main pension scheme if you transfer your BRASS funds. If you are considering transferring your funds, you can take further financial advice before making a decision. 

A financial advisor can explain the full advantages and disadvantages of transferring your BRASS funds. 

In some cases, it may also be a legal requirement to take advice before any transfers could proceed.

If you do decide to transfer out you must inform your employer and scheme administrator. After you request a guaranteed transfer out quote, your financial advisor will assist you with all transferring matters.

What happens to my BRASS funds if I leave employment?

You cannot continue to pay contributions into BRASS if you leave work and do not take payment of your benefits. When you leave your employer your existing BRASS funds will remain invested until you transfer out to another fund. 

You can still change your investmented funds even if you are no longer contributing.

You can continue to regularly check and review your fund choices to ensure they are still appropriate for you.

After changing to a new employer, you need to stop paying your BRASS fund to your previous employer’s section. In fact, you can join again If your new employer has a section in the Railways Pension Scheme. Just contact your employer or payroll office and you will be able to restart your fund.

If you restart or decide to transfer the fund, the pot will keep all the benefits from each period separate.

The BRASS authority will include it in a lump sum cash payable to your beneficiaries if you die before claiming your pension.

Your beneficiaries are simply either a dependant or a nominee. A dependant is someone who is financially supported on you such as your spouse, long-term unmarried partner, or civil partner. 

A nominee is someone who you have put in pen and paper to be the inheritor of the fund. A dependent can fully claim the fund if there is no nominee listed on the documents.

The trustee will pay all tax-free lump sum cash to a dependant or a nominee at their discretion.

What is the maximum BRASS contribution?

Depending on your contributions, you can make as little as £2 a week or £10 a month to your pot. 

Additionally, the most you pay into the pot yearly will be 15% of your total pay. But, you will need a pay 20% if your pay is pensionable and if you have any premiums. 

Fortunately, both of the percentages will be a minus to your normal scheme.

If you want to contribute the maximum amount then you can add all your regular monthly payments. Then you will be able to pay the added single sum before the end of the year. 

Furthermore, if you are a Network Rail member then there are a few different rules. As you will be able to pay up to 100% of your potential taxable earnings. There is however a limit on eligibility for how much you will pay on the tax relief. 

For additional details, you can check the official documentation on BRASS members by cliscking here.

How much pension will we get?

When you take your main pension benefits the value of the pot will be used to calculate additional pay. Your total pot will depend on the section of the scheme and the lump sum you take. 

BRASS members will receive a tax-free cash lump sum equal to the value of their fund. 

The below steps will let you figure out how much amount you can get from your existing BRASS pot.

Pension planner

You can figure out how much you have contributed to your BRASS pension pot and its value. To do that, you can simply Log in to your myRPS account and request an estimate. 

Additionally, you can use the pension planner in your myRPS account. Which can also show you an estimation of your total pension pot and its worth when you retire.

Check on your investments

It is completely healthy to regularly check on your investments, so the easiest way is through your myRPS. There are many options in your BRASS pension pot such as transfer, invest, manage, etc. 

• Your current fund holdings
• Which funds your AVCS will be paid to in the future
• Change both current and future funds
  
  

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