Scheme Rules
The Network Pension Scheme is the pension scheme for the staff of member organisations of the Velocity Interoperability Network. It is administered by the Pension Service of the Velocity Interoperability Network under rules made on the establishment of the Service and in force from 6 September 2026. This page sets out the principal provisions of the rules in eight parts. Where the rules and this summary differ, the rules prevail; a copy of the rules as made may be requested from the Service.
The scheme is a defined benefit scheme on a career average basis. Each year a member earns a fixed proportion of that year's pensionable pay as pension, and the pension earned is revalued annually until it comes into payment. Benefits do not depend on investment returns, and the contribution a member pays does not change the pension they earn.
Principal parameters. The table below records the parameters of the scheme for the scheme year from 6 September 2026 to 5 September 2027. Contribution tiers and the revaluation rate are reviewed each year and any change is announced in the Newsroom before the scheme year begins.
| Parameter | Value |
|---|---|
| Scheme year | 6 September to 5 September |
| Basis of benefits | Defined benefit, career average revalued earnings |
| Accrual rate | One sixtieth of pensionable pay for each year of pensionable service |
| Revaluation of accrued pension | Annually on 6 September, at the revaluation rate determined by the Treasury Department |
| Normal pension age | 66 |
| Minimum pension age | 56 |
| Latest retirement age | 72 |
| Qualifying period for benefits | Two years of pensionable service |
| Member contribution | 5.0 to 10.5 per cent of pensionable pay, by tier |
| Employer contribution | 19.5 per cent of pensionable pay |
| Lump sum by commutation | Up to one quarter of the pension, at 12 credits for each credit of annual pension given up |
| Death in service lump sum | Three times pensionable pay |
The rules. The eight parts of the rules are summarised below. Parts that are described more fully elsewhere on this site link to the page concerned.
- Part 1. Membership
- Every member of staff of a participating member organisation becomes a member of the scheme on the first day of their employment, whatever their hours or the length of their contract. A new member may opt out within three months of joining and is then treated as never having joined; a member who opts out later keeps the benefits already earned. A member who has opted out may rejoin once in any scheme year by writing to the Service through their employer.
- Part 2. Pensionable pay and contributions
- Pensionable pay is basic pay together with allowances that are permanent and pensionable under the member's terms of employment. Overtime, non-recurring payments and expenses are not pensionable. Members contribute at the rate of the tier in which their full-time equivalent pensionable pay falls on 6 September each year, or on joining; the rate is applied to actual pay. Employers contribute 19.5 per cent of pensionable pay and pay both contributions to the Service by the nineteenth day of the month following the month in which the pay was earned.
- Part 3. Pensionable service and accrual
- For each scheme year of pensionable service a member earns a pension of one sixtieth of the pensionable pay received in that year. Part-time service earns pension on the pay actually received, so no separate adjustment for hours is made. On 6 September each year the pension earned to date is revalued at the rate determined by the Treasury Department. Paid sick leave and paid family leave are pensionable in full; a period of unpaid leave of up to twelve months may be made pensionable by paying the member and employer contributions for the period within twelve months of returning to work.
- Part 4. Retirement benefits
- A member who has completed the qualifying period may draw their pension without reduction from the normal pension age of 66. A member may draw their pension from the age of 56 with a reduction for early payment, or defer it to any age up to 72 with an increase for late payment; the factors are set by the Service on the advice of the scheme actuary. A member may give up part of the pension, up to one quarter, for a lump sum of 12 credits for each credit of annual pension given up. From the age of 56 a member may, with the agreement of their employer, draw part of their pension while continuing to work reduced hours.
- Part 5. Ill-health and death benefits
- A member who is permanently unable to carry out the duties of their post may retire on an ill-health pension at any age. Where the member is able to take other regular employment the accrued pension is paid without reduction; where the member is unable to take any regular employment the pension is enhanced by half the service the member would have completed to the normal pension age. On the death of a member in service a lump sum of three times pensionable pay is paid, together with pensions for the member's partner and dependent children.
- Part 6. Leaving the scheme
- A member who leaves the employment of a participating member organisation after completing the qualifying period keeps a deferred pension, which is revalued each year in the same way as the pension of a contributing member and is payable from the normal pension age or earlier with a reduction. A member who leaves before completing the qualifying period may take a refund of their own contributions, less any tax due, or transfer the value of their benefits to another scheme. A member who moves between participating member organisations remains a member and their service continues without a break.
- Part 7. Transfers
- A member may apply to transfer the value of pension rights earned under another arrangement into the scheme within twelve months of joining. The Service converts the value received into an amount of scheme pension using factors set on the advice of the scheme actuary and adds it to the member's record. A member with a deferred pension may transfer its value out to another arrangement at any time before it comes into payment. Transfers of the predecessor arrangements of member organisations were made in bulk during the transition period and are recorded against each member.
- Part 8. Administration, records and disputes
- The Service administers the scheme under the direction of the Scheme Board. It keeps a record for every member, issues a benefit statement within six months of the end of each scheme year, and publishes statistics on the membership and funding of the scheme. A member who disagrees with a decision about their benefits may ask the Service to review it within six months of being told of the decision; the Service answers within two months. A member who remains dissatisfied may refer the matter to the Scheme Board, which answers within a further two months, and thereafter to the courts of the Network.
Questions about the rules, and requests for the rules as made, may be sent to contact@pensions.gov.vin. For the contribution tiers in force, see Contributions; for the benefits the scheme provides, see Benefits; for the procedure on retirement, see Retirement.