Partial retirement from civil service advice

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Dixy_3
Dixy_3 Posts: 25 Forumite
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in Pensions, annuities & retirement planning
I am 60 in May and considering changing from 5 to 3 days a week from September and taking my pension. I am in the classic scheme.
Can anyone advise please?
Will I loose out on my final retirement amount if I work over 3 years before finally retiring?
Am I able to leave the lump sum until final retirement?
Thanks in advance.
«134567

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  • molerat
    molerat Posts: 31,860 Forumite
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    Start by reading here http://www.civilservicepensionscheme.org.uk/members/classic/
  • System
    System Posts: 178,094 Community Admin
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    Hi

    AFAIK you effectively start a new employment contract, so all your history and benefits etc may be lost.

    You old 5 day post is terminated and your pension benefits are released in full.

    Your new 3 day contract starts and you are a fresh employee, and can join a pension scheme for the relatively short time you are still there.

    Perhaps the employment contract may just be varied to a shorter working week, but it may not. Things like long service awards, extra leave entitlement, sick pay etc are lost and gone for ever.

    However you work 3 days a week, have a large lump sum in the bank and get paid a pension. The tax and NI will probably be lower on earnings etc so that you have time and money for a better life.

    IT DOES need careful thought and a negotiation with the employer, but can be beneficial.
  • GunJack
    GunJack Posts: 11,673 Forumite
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    the guys here in a similar position a couple of years ago did it, are still here on 3-day weeks, and loving it...plus as one of them said, I can go fully any time I like :)
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • Andy_L
    Andy_L Posts: 12,792 Forumite
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    Dixy wrote: »
    Will I loose out on my final retirement amount if I work over 3 years before finally retiring?

    No, because you have already taken your accrued pension and it will be based on your accrued service & salary at that point.
    Dixy wrote: »
    Am I able to leave the lump sum until final retirement?
    Thanks in advance.

    No, you have to retire and take all your pension benefits when you (partially) retire. I think, but am not sure, that you will accrue "new pension" for the years you subsequently work part time under the current scheme
  • GunJack
    GunJack Posts: 11,673 Forumite
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    Andy_L wrote: »
    . I think, but am not sure, that you will accrue "new pension" for the years you subsequently work part time under the current scheme

    yes, this is the case...not much extra, but extra nonetheless :)
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • jamesperrett
    jamesperrett Posts: 1,009 Forumite
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    One thing to remember is that your pension plus salary when part time cannot be more than your full time salary.
  • sheramber
    sheramber Posts: 19,125 Forumite
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    Partial retirement information here
    http://www.civilservicepensionscheme.org.uk/media/95435/pr1_v10_dec15.pdf
  • Dixy_3
    Dixy_3 Posts: 25 Forumite
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    Andy_L wrote: »
    No, because you have already taken your accrued pension and it will be based on your accrued service & salary at that point.



    No, you have to retire and take all your pension benefits when you (partially) retire. I think, but am not sure, that you will accrue "new pension" for the years you subsequently work part time under the current scheme

    Thanks for all the replies it has cleared up a few points.
    The stuff I have read so far can be a bit confusing.
    I have put figures into the on line calculatior and it looks ok as far as I can see. I just don't want to make a mistake and loose out.

    It would appear that won't be the case, so long as I am over 60 I will get the full pension I am due.
    I should get a bit more at full retirement too.

    Just need to get management to agree my new part time contract. :beer:
  • Muscle750
    Muscle750 Posts: 1,075 Forumite
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    Friend of mine worked in the civil service years said the new employees are told dont look out the window in the morning otherwise you will have nothing to do in the afternoon.
    Meanwhile us lot in the private sector working 55 hours pw week plus then getting stopped £400 in tax to help fund your take the money and run pensions at 55
  • hyubh
    hyubh Posts: 3,531 Forumite
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    Muscle750 wrote: »
    Meanwhile us lot in the private sector working 55 hours pw week plus then getting stopped £400 in tax to help fund your take the money and run pensions at 55

    Now now Mr Muscle, that's not really answering Dixy's question, is it? Especially as Dixy is already nearly 60, and wants to carry on working. Perhaps you could check with your civil servant friend about PCSPS abatement rules and report back...?
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