How will GMP affect me getting deferred civil service classic pension at 55

Odd.....normal PCSPS Classic would have a retirement age of 65 at AO grade (pension age was grade-related - are you sure you didn't end up at EO?). If you can take it at 60 may well be that there is some GMP interaction allowing it to be paid then. Hopefully someone older (and more knowledgeable can explain it?

OldBeanz wrote: »

My wife is a deferred Classic Civil Service Pension member Admin Officer of a similar age and due to receive her pension at 60. No expert but I have never heard of anyone being denied their pension 5 years before their normal retirement age. Inflation should up your pension by 10% but you will lose about 20-25% for drawing early.

Don't take this the wrong way, but how old is she and when did she start in the CS? Was it pre-1986 by any chance? I started in 1988 and know the 1986 changes were significant for t&c, pensions, reserved rights, etc but don't know the full details Maybe the 86 changes upped AO-level pension age but it's all I've ever known it to be (bar some specallist grades at that level)?

If that's the case it would fit with the OP (as a pre-86 starter)

I am surprised by the comments on retirement age being 65 - I had thought 60.

For a female, GMP age was (and is) 60.

http://www.civilservicepensionscheme.org.uk/media/181385/ycpbe-april16-v1.pdf

The Civil Service Pension Scheme was contracted out of the State Earnings Related Pension Scheme (SERPS) prior to 6 April 2016. If you were a member of the Civil Service Pension Scheme between 6 April 1978 and 5 April 1997, GMP is the minimum amount that the scheme must provide for you at State Pension age (SPA).

http://www.civilservicepensionscheme.org.uk/media/181385/ycpbe-april16-v1.pdf

Actuarially-reduced early retirement
Most classic members who are aged 50 (55 in
some cases) or over can choose to retire and take
their pension early on an actuarially-reduced basis.
The only restrictions are that:
• you must have two years’ qualifying service
or have transferred pension rights into classic
from a personal pension; and
• you cannot have an actuarially-reduced
pension if it would be less than the amount
needed to pay your guaranteed minimum
pension at State pension age.

https://www.barnett-waddingham.co.uk/comment-insight/blog/2

The GMP must be increased for each complete tax year in the period from leaving pensionable service to retirement or death. COSR schemes can adopt one of the following ways to revalue GMP.

The first way uses an index based on National Average Earnings, known as Section 148 Orders or ‘full rate’ revaluation. This is most common in public sector pension schemes. The Secretary of State will publish a Social Security Revaluation of Earnings Factors Order (known as 'Section 148 orders') each year specifying the minimum increase that must be applied to each member’s GMP which is based on National Average Earnings.


At the time when the OP (female) was a civil servant, the arrangement would have been that at SPA (which at that point would have been expected to be 60 and which aligned with GMP age), increases on pensions in payment would have been split between occupational pension and state pension - with the increase in SPA, special arrangements were made for public service pensions and with NSP another transitional arrangement.

https://www.gov.uk/government/news/government-one-step-closer-to-introducing-new-state-pension-this-year


OP, have you obtained a new state pension statement?


https://www.gov.uk/check-state-pension

As you can see from the above, only MyCSP can give you a full answer to questions about your pension.

If OP can take her (reduced) pension before 60, then the GMP won't be a problem.

The only way the GMP could prevent payment is if the pension is being taken as a one-off lump sum under triviality rules, in which case GMP age (still 60 for a woman, 65 for a man) is the minimum.

OP is well over the limit for trivial commutation, so not an issue here.

The OP is considering actuarially reduced pension.

http://www.civilservicepensionscheme.org.uk/media/181385/ycpbe-april16-v1.pdf


Actuarially-reduced early retirement
Most classic members who are aged 50 (55 in
some cases) or over can choose to retire and take
their pension early on an actuarially-reduced basis.
The only restrictions are that:
• you must have two years’ qualifying service
or have transferred pension rights into classic
from a personal pension; and
• you cannot have an actuarially-reduced
pension if it would be less than the amount
needed to pay your guaranteed minimum
pension at State pension age.

Something on this from NHS pensions here

https://www.nhsbsa.nhs.uk/sites/default/files/2017-04/GMP%20Test%20%20%E2%80%93%20Decision%20tree%20%2804.2017%29%20V3.pdf

The OP would need to find out from My CSP if GMP test applied in her case.

It is mentioned here

http://www.civilservicepensionscheme.org.uk/members/civil-service-compensation-scheme-for-members/faqs/

I'd be very surprised if the GMP is a limiting factor in this case. But, yes, it could be in others.

Covered in last link in 8 above.