My payments

Understand how contributions work and what to do if you want to pay more.

Paying into your pension pot

Here’s the good news – as a member of the Industry-Wide Defined Contribution (IWDC) Section of the Railways Pension Scheme (RPS), you are not saving alone towards your future.

Read on to find out who pays in to your pension pot, also known as your Personal Retirement Account (PRA), and understand what you can do with it. 

A green purse and a brown wallet next to a pile of coins.
You and your employer pay in

You and your employer make regular payments each pay period towards your pension. These are known as your 'contributions'. 

Your Key Features leaflet will tell you what your contribution rates are. You can find this in the My Library area when you log in to your myRPS account. Log in now to check your Key Features leaflet.

The money you pay in is taken from your Pensionable Pay. This is the part of your pay that your employer has decided counts towards your pension. It doesn't usually include overtime or bonus pay. The Key Features leaflet in your myRPS account will also tell you more about your Pensionable Pay.

You get tax relief on your contributions too. This means you save more because the money you would have paid in tax goes into your pension instead. For more information about tax relief, visit the pension tax limits page.

Your employer may also offer you the option to pay into the IWDC Section via an arrangement where you ‘give up’ some of your salary and instead use it as an additional company contribution into your pot. This is known as 'salary sacrifice'. Please speak to your employer directly if you need any further details about salary sacrifice. 

You can pay more in if you want 

You can help increase the value of your pot if you pay more in. You can do this with Additional Voluntary Contributions (AVCs).  Like your normal contributions, AVCs are taken from your pay before income tax is applied. This means you do not pay tax on them. You may also be able to pay AVCs through a salary sacrifice arrangement if your employer offers one.

Find further information about AVCs on the saving more page.

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Good to know

The value of your pension pot will change with time. Its value at any time will depend on:

  • how much you and your employer have paid in
  • how long your pot has been invested
  • how much your investments have grown over this period
Your money gets invested

The money you and your employer pay towards your pension is used to buy units in a range of investment funds.

The value of your chosen investment funds makes up your pension pot, so it's important to understand your options and what might work best for you.  

It’s also up to you to decide how involved you want to be in the investment process. You can manage your own funds if you want to. If not, you can opt for a ‘hands-off’ approach and have your funds managed for you. 

Check the investing: basics I need to know page for more information.  

If you haven't chosen an option, you will be entered in the Target Flexible Drawdown Lifestyle strategy, which is the default option for IWDC members.  Read on below for more information on the full list of investment options available. 

You can choose the investments that suit you

You can choose from a range of investment funds, including Lifestyle strategies. Each of the investment choices has a different objective and risk rating. The one(s) that suit you will mostly depend on your personal attitude to risk and how you want to take your pot.

See a full list of your investment options on the my fund choices page. 

You can invest in as many of the strategies or funds as you like but you should think about your retirement goals and how you want to use your pot to give you the income you'll need. You may want to consider getting independent financial advice if you're unsure about your plans or which option is right for you.

Find out where to get help on the guidance and advice page.

Your future is in your hands 

Your investment funds have a direct impact on how much is in your pension pot. So it's vital that you check and monitor your funds regularly, even if they are being managed for you. 

You can view, and switch your funds, by logging in to your myRPS account. 

Check your investment funds when you log in
Your online account helps you keep track of your pot

The best and easiest way to manage your pot is to log in to your myRPS account.

When you log in you can: 

  • check your investment funds
  • move your money from one fund to another
  • request an estimate to see how much your pot is expected to be worth when you plan to take it

Log in to your myRPS account now. 

What to read next...

My fund choices

Discover how the funds work and learn more about how your investments are managed.

Investing:the basics I need to know

Learn how your investments work, who manages them and how your contributions are invested.

I'm new to the Scheme

If you've recently joined the IWDC Section, you can find out how to get the most out of your membership.