Civil Service Pension Choices

BoxerfanUK

penwise wrote: »

Classic pays an automatic lump sum and pension.
Didn't know you could convert the lump sum to pension? How and when can u do this ?
Thanks

As BobQ says, you can do this but you have to do it before you actually draw your pension.


There are different factors for every £100 of lump sum you surrender in the calculation depending on your age at the time you intend to retire and also whether you want your increased pension to also cover widow/widowers benefits or not. You can surrender some or all of your lump sum for added pension. For obvious reasons, the amount of pension you can get in exchange for surrendering your lump sum increases the older you are.


As I took my pension @ 55 I did investigate this and for me (if I recall correctly) I could have increased my pension by £4.48 per annum for every £100 of lump sum I surrendered. I decided against it as a personal choice but it may suit others. I don't know what the commutation rate works out at as I'm no mathematician but it appears to be approximately half the 12/1 rate for giving up pension for added lump sum.