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    • Advice4sue
    • By Advice4sue 10th Jul 17, 8:19 AM
    • 7Posts
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    Advice4sue
    How will GMP affect me getting deferred civil service classic pension at 55
    • #1
    • 10th Jul 17, 8:19 AM
    How will GMP affect me getting deferred civil service classic pension at 55 10th Jul 17 at 8:19 AM
    Hi. I'm just wondering if anyone has experience of getting a small deferred classic civil service pension at 55. I can see that in the 'classic' details it says I can claim from 50 (I'm actually 55 now so aren't trying to get it from the earliest date) But it also states that to receive it now I must have enough to cover the GMP.
    I was in the civil service full time from Jan 82 until I had my first daughter in 1990 and then I was part time 15 hours until 1993. I was an Admin Officer so just a lowly grade!
    The last statement of any kind that I can find is from 2007. It says my pension at 60 would be £1611 pa and a lump sum of £4834. I realise if i claim it now there would be a reduction but have no idea if the GMP element would stop me getting it early.
    Any advice would be greatly appreciated. I am currently awaiting a new statement but I know it will take ages to come and would love to have an idea now so I'm not too disappointed if I find I don't qualify!!
    Thanks
Page 1
    • GunJack
    • By GunJack 10th Jul 17, 8:55 AM
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    GunJack
    • #2
    • 10th Jul 17, 8:55 AM
    • #2
    • 10th Jul 17, 8:55 AM
    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?
    ......Gettin' There, Wherever There is......
    • OldBeanz
    • By OldBeanz 10th Jul 17, 9:20 AM
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    OldBeanz
    • #3
    • 10th Jul 17, 9:20 AM
    • #3
    • 10th Jul 17, 9:20 AM
    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.
    • GunJack
    • By GunJack 10th Jul 17, 10:14 AM
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    GunJack
    • #4
    • 10th Jul 17, 10:14 AM
    • #4
    • 10th Jul 17, 10:14 AM
    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.
    Originally posted by OldBeanz
    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)
    ......Gettin' There, Wherever There is......
    • OldBeanz
    • By OldBeanz 10th Jul 17, 11:03 AM
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    OldBeanz
    • #5
    • 10th Jul 17, 11:03 AM
    • #5
    • 10th Jul 17, 11:03 AM
    Wife similar age to OP and worked from 78 to 93. I was a CS at that time and was not aware anything happened in 86 re pensions and thought it was the 00's before they started messing with retirement dates.
    • xylophone
    • By xylophone 10th Jul 17, 11:14 AM
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    xylophone
    • #6
    • 10th Jul 17, 11:14 AM
    • #6
    • 10th Jul 17, 11:14 AM
    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.
    • Silvertabby
    • By Silvertabby 10th Jul 17, 11:54 AM
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    Silvertabby
    • #7
    • 10th Jul 17, 11:54 AM
    • #7
    • 10th Jul 17, 11:54 AM
    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 - 2007 figures quoted plus cost of living inceases will be more like £2K pension and £6K lump sum today.
    Last edited by Silvertabby; 10-07-2017 at 12:12 PM.
    • xylophone
    • By xylophone 10th Jul 17, 12:33 PM
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    xylophone
    • #8
    • 10th Jul 17, 12:33 PM
    • #8
    • 10th Jul 17, 12:33 PM
    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%280 4.2017%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/
    • Silvertabby
    • By Silvertabby 10th Jul 17, 12:42 PM
    • 1,274 Posts
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    Silvertabby
    • #9
    • 10th Jul 17, 12:42 PM
    • #9
    • 10th Jul 17, 12:42 PM
    • 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.
    Same as LGPS regs - also used to limit the amount of tax free cash available if the full 25% would take the resulting reduced pension to below the GMP. Based on OP's comments and my own 'back of fag packet' calculations/LGPS experience, I'd be very surprised if the GMP is a limiting factor in this case. But, yes, it could be in others.
    • xylophone
    • By xylophone 10th Jul 17, 12:49 PM
    • 22,054 Posts
    • 12,719 Thanks
    xylophone
    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.
    • Silvertabby
    • By Silvertabby 10th Jul 17, 12:54 PM
    • 1,274 Posts
    • 1,472 Thanks
    Silvertabby
    Yes, I know - link says that actuarily reduced pensions can't be below the GMP, I just expanded that to say that commutation reductions are subject to the same rules.
    • Advice4sue
    • By Advice4sue 11th Jul 17, 7:19 AM
    • 7 Posts
    • 2 Thanks
    Advice4sue
    Thanks for all the comments and advice. Coincidentally I had a telephone call from My CSP yesterday to tell me that my calculation had been done and would be sent out by 19 July. She wasn't able to give me any other information or detail over the phone so I will have to wait but it was a quicker response than anticipated. Not sure if that's a good thing or not!!
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