union for life



It is relatively easy to compare alpha to nuvos because the schemes are very similar. The main differences between alpha and nuvos are accrual rate and pension age.

The accrual rate in alpha is 2.32% and is therefore higher than the accrual rate of 2.3% in nuvos.

Pension age in alpha is State Pension Age (see www.gov.uk/calculate-state-pension to calculate your pension age). Pension age in nuvos is 65.

As State Pension Age for people in the option group is higher than 65, this element of difference will tend to make nuvos more attractive.

Take one year accrued with pension age of 66 and one year accrued at 65. The impact of the difference in pension age could be 4% or so (favouring the scheme with the lower pension age). This will usually be more significant than the difference in accrual rate.

So the impact of the higher pension age would usually be expected to outweigh the impact of the difference in accrual rate so nuvos may appear more attractive to most members than alpha.

However there is no guarantee that this will always remain the case as pension age and other factors can change in the future.