Committee publication · Estimate memoranda · 29 April 2026

UKAEA Pension Schemes Main Estimate Memorandum 2026-27

From: Energy Security and Net Zero Committee

Summary

This Main Estimate memorandum presents the UK Atomic Energy Authority Pension Schemes' budget for 2026-27. The estimate seeks £260.9m in Resource AME and £317.6m net cash requirement. The key driver is the planned scheme closure on 30 September 2026, after which active members will transfer to the civil service alpha pension scheme, reducing resource requirements by 9.9% but increasing net cash need by 9.0% as contributions cease.

Key findings

  • Resource AME requirement of £260.9m, down 9.9% (£28.6m) from 2025-26 final budget, primarily due to scheme closure mid-year.
  • Net cash requirement of £317.6m, up 9.0% (£26.3m) from previous year, because no contributions will be received after 30 September 2026.
  • Current service costs fall 58.5% to £24.2m as active members cease accruing benefits after scheme closure.
  • Scheme liabilities valued at £5,371 million as at 31 March 2025, with approximately 40,000 members across active, deferred, and pensioner categories.
  • Administration costs expected at £2.4m for 2026-27, broadly in line with previous years, with additional costs from the transition to alpha scheme.

Tone

Procedural

Topics

public-financepensionspublic-service-employmentnuclear-energy

Key actors

UK Atomic Energy Authority (UKAEA), Department for Energy Security and Net Zero (DESNZ), HM Treasury, Government Actuary's Department, Jonathan Brearley, Martin Gaunt

Notable line

… the planned closure of the scheme from 30 September 2026, with current UKAEA Pension active members then building up pension in the alpha pension scheme from 1 October

Key Quotes

The Estimate covers the provision of pensions and lump sums to retired members or their dependants, transfer values for members transferring to other schemes and repayments of contributions under the UK Atomic Energy Authority (UKAEA) Pension Schemes.
Memorandum · Statement of scheme objectives
The UKAEA Pension Schemes are an unfunded, defined benefit pay-as-you-go occupational pension scheme operated by the UKAEA Pension Schemes on behalf of the members who satisfy the membership criteria.
Memorandum · Description of scheme structure
The main driver for this is the planned closure of the scheme from 30 September 2026, with current UKAEA Pension active members then building up pension in the alpha pension scheme from 1 October
Memorandum · Explanation of Resource AME reduction
The net cash requirement is based on benefits expenditure less any contributions received. No contributions will be paid after 30 September 2026, increasing the net cash requirement.
Memorandum · Explanation of net cash requirement increase
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Source · parliament.uk record ↗