Civil service pensions

jennykins_2

Dear all,
need you help!
I joined the civil service in 1979.
Break in service from 1986-1988.
Re-joined from 1988-2004. Accepted a lump sum to go. At the time with classic pension scheme. Preserved award held for 03/10/80-02/07/86.
Re-joined 03/08/09. Need to make a choice premium or partnership pension scheme.
Also have civil service av's, not contributed to since 2004.
I am 57 this year, would like to retire at 60 and keep my lump sum.
Also which sche will enable me to apply for a refund of contributions from widows/widowers scheme.
What are the main pros and cons of either scheme?
Sorry so long winded.
First time using any site.
Thanks

taliesin

jennykins wrote: »

Dear all,
need you help!
I joined the civil service in 1979.
Break in service from 1986-1988.
Re-joined from 1988-2004. Accepted a lump sum to go. At the time with classic pension scheme. Preserved award held for 03/10/80-02/07/86.
Re-joined 03/08/09. Need to make a choice premium or partnership pension scheme.
Also have civil service av's, not contributed to since 2004.
I am 57 this year, would like to retire at 60 and keep my lump sum.
Also which sche will enable me to apply for a refund of contributions from widows/widowers scheme.
What are the main pros and cons of either scheme?
Sorry so long winded.
First time using any site.
Thanks

Premium is a "defined benefit" "final salary" scheme, very similar to Classic. It is a little more flexible, for example, long-term same-sex partners can benefit in the same way as only spouses could within Classic. Because the benefits you will accrue going forward are marginally better, you will pay 3.5% instead of the 1.5% widow's pension contribution in Classic.

Partnership is a "defined contribution" scheme. Your department puts some of the money that they would otherwise give to the Treasury, to cover the cost of providing your pension in the future, into a stakeholder pension with one of three pension management companies (Scottish Widows, Standard Life, or Prudential, I think; your choice of which one).

Most (maybe all?) commentators reckon that, for almost everyone, Premium looks like a much better option than Partnership.

The normal retirement age in Premium is 60. Premium benefits are quoted in terms of 1/60 final salary per year of full-time service, without a lump sum, but you can "commute" part of your pension into a lump sum. Premium was set up in such a way that the value of the additional benefits was accounted for by slightly reducing the number of years for those who transfer their entitlements across from Classic. Most people transferring found that the resulting difference in benefits between the two schemes was microscopic - the odd pound or two per year one way or the other on the annual pension, and the odd fiver or so difference in the lump sum, once you worked through the commutation sums.

If you opt for Premium, you will have to decide whether to move your existing rights within the Classic scheme into Premium. Premium has no concept of a separate "widow's pension" - there's a much wider basket of dependents' benefits on offer - so the contributions you previously paid for that in Classic will not be returned. If this is a big issue for you, you can keep the previous contributions and benefits from the Classic scheme separate and the old arrangements will continue to apply in respect of the years you have already built up. You won't get future contributions to Premium returned however you do it.

Your local pension administrator will have leaflets about the schemes and can probably provide detailed estimates to cover most scenarios. Or you can download copies from http://www.civilservice.gov.uk/my-civil-service/pensions/scheme-guides/index.aspx Your union is also a good source of advice.

Andy_L

jennykins wrote: »

I joined the civil service in 1979.
Break in service from 1986-1988.
Re-joined from 1988-2004. Accepted a lump sum to go. At the time with classic pension scheme. Preserved award held for 03/10/80-02/07/86.
Re-joined 03/08/09. Need to make a choice premium or partnership pension scheme.

I'm reasonably sure that, because you took a lump sum (ie a redundancy payment) you can't join Premium but have to join Nuvos, the new career average scheme instead

taliesin

Andy_L wrote: »

I'm reasonably sure that, because you took a lump sum (ie a redundancy payment) you can't join Premium but have to join Nuvos, the new career average scheme instead

Good point. I took what OP said at face value. Before going any further, she needs to confirm with her local HR that that is the choice on offer.