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Civil Service Pension - do I need to be checking on annuities etc?

I'm nearly 60 and about to receive my Civil Service pension. I left my Civil Service employment nearly 20 years ago but had over 20 years service in one of HM Dockyards from the 70s to the 90s.

Can I assume the Capita valuations of my lump sum and pension payouts are the maximum payouts and I don't need to be checking on annuities etc or should I be getting some kind of financial advice regarding annuities etc?

Comments

  • Linton
    Linton Posts: 17,925 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Your pension is guaranteed by the scheme rules. Annuity rates only matter to those people who buy an income from a lump sum, probably accumulated as part of a Defined Contribution pension.
  • Bazzeer
    Bazzeer Posts: 12 Forumite
    Part of the Furniture First Post Combo Breaker
    Thanks for that Linton, as you may of gathered, I know absolutely nothing about pensions but from what you say I assume I can just sit back and let Capita get on with it?
  • Linton
    Linton Posts: 17,925 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    I dont know the procedures for CS pensions. I would expect them to contact you perhaps 2 months or more before your pension is due to give you the options - eg large pension vs smaller pension + lump sum. If you are worried suggest you contact Capita
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    And once your pension comes into payment, make sure that your tax position is correct.
    http://www.hmrc.gov.uk/pensioners/pension.htm
  • Goldenyears
    Goldenyears Posts: 323 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 28 January 2014 at 11:32PM
    I don't know what communication you have had from Capita. They should have contacted you at least 3 months before your 60th if they have your current address. Assuming the Classic scheme, it should be the default lump sum of 3 x pension with the option to exchange pension for more lump sum at a not very favourable rate. Reverse commutation (sacrificing lump sum for more pension) is available with a return of about 5% depending on age/gender/spouse benefits, which beats current annuity rates with indexed linking. However this may not be offered. You have to ask for it because it isn't a fixed fraction like ordinary commutation. At least that was the position 5 yrs ago.
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