civil service pension - alpha transfer in

droiderm

Hi.

I have recently joined the civil service and I am thinking about transferring in my pension pot.
I currently have 70 k ish.

Would anyone happen to know the formula used?

Thanks!

bigfreddiel

Ask the pension administrators. I did exactly that 17 years ago when I transferred three old pension pots into the Classic scheme.

Cheers fj

hyubh

droiderm wrote: »

Would anyone happen to know the formula used?

It's a bit complicated, and involves various variables - drop MyCSP an email and request a transfer in form to get a formal quotation (contactcentre@mycsp.co.uk).

That said, calculations may still be suspended at the moment due to waiting on new factors from GAD (the Government Actuary's Department) - new ones will have been needed following the change to the unfunded public sector schemes' discount rate announced in the last budget.

droiderm

Thanks both.

I posted off a form a few weeks ago and received a reply a few days ago saying they will contact the previous administrator and let me know. I suspect it's going to take quite a bit of time!

I guess I am just being a bit impatient and curious to whether it will be a tough decision. That and I have a smaller pension pot which needs dealt with in the next few months

Thanks again

xylophone

I suspect it's going to take quite a bit of time!

http://www.civilservicepensionscheme.org.uk/members/what-to-expect/when-you-want-to-transfer-benefits-into-the-civil-service-pension-arrangements/

You may be right....:)

bigfreddiel

This may not apply, but there may be a time limit on transferring in. When I was in the Classic scheme it had to be done within the first year of joining.

droiderm

I have finally had a quote back.
They are offering 8600 pa or 3229 widows pension for a transfer of 73186.

That would be from state pension age which I am about 27 years from. Is sounds reasonable. Negatives being I can't have it until 67 , and I guess that might change. And the fact that it doesn't mention if it will go up with inflation or not


Do I need to seek advice?

Thanks

droiderm

Actually it says "it will buy you an index linked pension with a pension age linked to the state pension age". Sounds like a good deal?

bigfreddiel

I would go for it, hopefully the government pension scheme won't run out of money unlike other private sector schemes.

You know for definite what you will get, unlike buying an annuity

Finally just having one pension to keep track of will make your life a whole lot easier when you are 67.

Cheers fj

bigadaj

bigfreddiel wrote: »

I would go for it, hopefully the government pension scheme won't run out of money unlike other private sector schemes.

You know for definite what you will get, unlike buying an annuity

Finally just having one pension to keep track of will make your life a whole lot easier when you are 67.

Cheers fj

Interesting response.

The OP hasn't clarified but transferring in a pot suggests a defined contribution scheme, in which case it is presumably invested and won't run out of money but be subject to risk and investment performance.

If you are buying an annuity you'll know exactly what you're getting, though projecting 27 years into the future may be difficult.

It's all very well to have the money at 67 but it can be useful to have a separate pot to bridge any gaps above the age of 55 and there's an argument that this will also spread risk.

It's all personal opinion and preference at the end of the day.

GunJack

27 years in (I'm assuming alpha) probably won't be a whole lot, would it be possible to split the existing DC pot between part CS and part SIPP or similar? Then best of both worlds...