PCSPS - Added Years advice.

hp4020

PCSPS - Classic joined 1988

In 1994 I entered into a contract to buy two and a bit years pension by making payments to direct purchase added years, the cost of this extra pension was calculated into monthly instalments from 1994 through to my then Normal retirement age of 60 (2026).

My classic pension will be frozen from 2015, I have contacted PCSPS and been told that I will be allowed to continue buying the added years in the post 2015 scheme that now has a normal retirement age of 68 (2034).

I must admit I am aggrieved that when I took the added years it was explained to me that this was a contract and that I must commit to paying until I was 60, yet they can move the contractual goal posts half way through.

I had considered asking for the return of my added years payments that I have paid since 1994, and contacted the PCSPS to inquire how much I had paid in, unbelievably they told me they didnt know how much I had paid in due to changes in computer systems.

Is there anyone else in the same or similar position ???

Can anyone give me some ideas of realistic options ?????

hyubh

hp4020 wrote: »

My classic pension will be frozen from 2015

Not exactly - you won't accrue any more years membership in it, but benefits will still be based on your final salary. See here:

http://www.civilservice.gov.uk/pensions/reform/happening

I have contacted PCSPS and been told that I will be allowed to continue buying the added years in the post 2015 scheme

I think you should double check - 'buying added years' doesn't make much sense in the context of a career average scheme, which is what the 2015 scheme will be. Are you sure they weren't just saying that your existing added years contract can continue to its end...? The fact you won't be able to accrue any more regular years membership in the final salary scheme doesn't in itself say you won't be able to complete the added years contract.

I had considered asking for the return of my added years payments that I have paid since 1994

That would be cutting off your nose to spite your face!

Annie1960

I was also in Classic, and retired in 2011.

Presumably they will pro-rate the added years you have bought already, so you should not lose out. I'm not sure about buying added years for the new scheme, but the other option you could consider is the AVC or stakeholder options. Added years are good if you want to increase your dependents' benefits, but the AVC or stakeholder could be a better option if you just want benefits for yourself.

Making this decision is an important not to mention expensive one. I went to see and Independent Financial Adviser when I made my choice, and you could consider this route.

hp4020

thanks for your replys...

I have emailed the MYCSPS and asked them to confirm if my contributions will continue to buy added years in classic as opposed to the new Career Average scheme.

Annie - Think you have hit the nail on the head..I need some professional advice.....