Been offered a job in Civil Service - new to public sector - pension question

KMA

hi there,


I've recently been offered a Civil Service job. Coming from the Private sector, I am trying to understand what this package may mean for me and specifically the pension options currently available through the Civil Service.


I do not know whether this job will be a long term career for me so weighing up whether to go for NUVOS (if I still can, that is as it sounds like that is possibly going to change) or Partnership. Also if I stay less than 2 years with the Civil Service I believe I would lose the employer contributions under NUVOS.


I am 49 years old. I will be joining on a relatively low salary grade (Admin- AO) so less than £20K pa and I don't anticipate that my career path/income will increase significantly over time if I stay.


I already have 16 years of a defined benefit pension from a previous employer at a far higher salary (16/60's). The retirement age on that industry pension is 63 years. I also have an AVC with the previous employer, my own Stakeholder pension funds plus a rather paltry NEST stakeholder pension from some temporary work. I don't think I would want to transfer my defined benefit pension scheme to the Civil Service but I don't think I can transfer my NEST pension either.


I am considering taking an early pension (from 55 years if possible!) from my AVC/stakeholder funds, if that proves possible/desirable to do so to provide me an income stream.
I am on track to be mortgage-free by 2016.


My question is: Should I go for Partnership rather than NUVOS or could I switch from partnership to NUVOS once I have crossed the 2 year threshold. Apologies if I seem uncertain but I have a number of lifestyle scenarios coming into play over the next few years and wish to remain as flexible as possible.


Any advice most welcome from you knowledgeable people!
thanks in advance

hugheskevi

I do not know whether this job will be a long term career for me so weighing up whether to go for NUVOS (if I still can, that is as it sounds like that is possibly going to change)

It will change in April 2015 to a scheme very similar to nuvos called alpha, but with a worse Normal Pension age.

Also if I stay less than 2 years with the Civil Service I believe I would lose the employer contributions under NUVOS.

You could transfer them out. You only lose them if you choose a short service refund of contributions.

I am on track to be mortgage-free by 2016.

Worth considering whether that is the most financially optimal course of action.

could I switch from partnership to NUVOS once I have crossed the 2 year threshold

There wouldn't be much point in that (I think the 2 year period starts when you join nuvos anyway). If you are worried about the 2 year vesting period, open a Stakeholder pension, contribute a trivial amount then transfer it into the scheme. Short service refunds don't apply where there is a transfer in.

Should I go for Partnership rather than NUVOS

Partnership contribution rates are capped at the rate for 46 year olds. You are older than that so in pure value for money terms nuvos will be better, other things being equal (life expectancy, marriage status, health status, etc, all influence that).

Note Partnership is changing too.

scrimpy_1

Hi, I haven't posted on the forum before, so not sure if it's OK to leave a message on someone else's thread (if not - sorry! I'll start a new one if people tell me off). I'm in a similar situation to KMA, with some differences.

I've been in the job 3 months, but haven't received any info about pensions yet, so don't know if i've been opted in to Nuvos automatically.

I've been advised by colleagues that I won't receive my employer's contributions (very good from what I can see!) if I leave within 2 years. However, if I transfer the pension into (or out of? Not sure...) an existing workplace or personal pension, i'll be treated as if I stayed 2 years.

I don't have a previous pension, so I can't do that.

I wonder, can I open a personal pension now, stick some cash in it, then when I opt into Nuvos tell them about that?

ANY advice appreciated - so confused...

xylophone

Have you not been given a joiner pack?

See http://www.civilservicepensionscheme.org.uk/members/prospective-members-faqs/

"How do I join the pension scheme?
Your employer will help you with this and will give you a starter pack containing information about your pension choices."

Contact HR?

BobQ

scrimpy_1 wrote: »

Hi, I haven't posted on the forum before, so not sure if it's OK to leave a message on someone else's thread (if not - sorry! I'll start a new one if people tell me off). I'm in a similar situation to KMA, with some differences.

To be honest it is not encouraged to post on the same thread. Partly because if it is different it causes confusion and also because it may mean that you do not get a reply. Si best to start a new thread. But never mind!

I've been in the job 3 months, but haven't received any info about pensions yet, so don't know if i've been opted in to Nuvos automatically

.

If it is a civil service job you will be automatically put into Nivos unless you opt out

I've been advised by colleagues that I won't receive my employer's contributions (very good from what I can see!) if I leave within 2 years. However, if I transfer the pension into (or out of? Not sure...) an existing workplace or personal pension, i'll be treated as if I stayed 2 years.

This has been covered above, You only lose the employer contributions if you choose to do this and leave before 2 years. You can transfer what you build up (including the employer contributions) to another scheme

I don't have a previous pension, so I can't do that.

I wonder, can I open a personal pension now, stick some cash in it, then when I opt into Nuvos tell them about that?

ANY advice appreciated - so confused...

First ask why you are not in NUVOS. Does your pay slip show a pension deduction each month? If not ask why.