Civil Service pension question

Berko_lad

Hi,

I am currently sitting on a preserved Civil Service Pension (NUVOS) of £1527 per annum which I am eligible to draw at age 65, although I have been told that it is possible to draw it early, albeit with penalties.

I also believe that it is possible to commute a percentage of the pot and since the annual sum is relatively small and at age 56, I'm some 9 years away from claiming the full amount, I was wondering if anyone could tell me how I could go about finding out a rough forecast.

I have asked the Civil Service Pension providers but they are incredibly slow.

Thanks in advance.

mania112

The reduction will typically be about 5% for each year before pension age.

At the time you draw your pension you can choose to give up part of your pension for a tax-free lump sum. This is called “commuting” pension for lump sum and is subject to limits set by HMRC. Currently the limit is 25% of the total notional value of your pension benefits and the formula for working out the maximum amount of tax-free cash in nuvos is pension x 30/7.

MyCSP will reduce your pension by £1 a year for every £12 you take as a lump sum.

You can find a calculator on https://www.civilservice.gov.uk/pensions

Berko_lad

Thanks. I've done the calculator but it's telling me there is no facility to draw a lump sum on a NUVOS pension. This is contrary to what I've been told so I guess I'll have to wait until the CS get back to me with a definitive answer.

xylophone

Your scheme booklet

http://www.civilservicepensionscheme.org.uk/media/81762/nuvos-scheme-guide.pdf


"At the time you draw your pension you can
choose to give up part of your pension for a
tax-free lump sum. This is called “commuting”
pension for lump sum and is subject to limits set
by HMRC. Currently the limit is 25% of the total
notional value of your pension benefits and the
formula for working out the maximum amount of
tax-free cash in nuvos is pension x 30/7

Your pension will be reduced by £1 a year for every £12 you take as a lump sum. "

hugheskevi

Use the calculator at this link to calculate the actuarially reduced pension. I make it that the reduced pension will be a bit under £1,000 p/a.

Then use the calculator at this link to calculate the commutation. A pension of £1,000 could be commuted to £642.86 to generate a lump sum of £4,285.71.

Berko_lad

Thanks for the information. I managed to get through on the phone and they gave me some rough figures.

A proper surrender offer will be in the post within the next few weeks which should be interesting.

mania112

if you're still working and in good health you shouldnt consider drawing early.