Nuvos advice please

Bailey_Barker

I work for the Civil Service and have been in the Nuvos pension scheme since November 2012. I reached pensionable age on 10th April 2016 but plan to continue working until April 2017. I am still paying £59 per month into the scheme.
I have been told that my continuing payments will not add to the pension but will be paid as a lump sum which will include a contribution from my employer, although that amount is undefined. A figure of 2.3% of pensionable salary has been suggested but if that's the case, my understanding is that I'll be paying in a greater sum over the next 11 months than I will get back.
Can somebody help me make sense of this please?
:wall::wall::wall:

hugheskevi

I work for the Civil Service and have been in the Nuvos pension scheme since November 2012.

As you joined after March 2012, you will have moved into alpha in April 2015.

I have been told that my continuing payments will not add to the pension but will be paid as a lump sum which will include a contribution from my employer, although that amount is undefined.

Told by whom?

Can somebody help me make sense of this please?

Whoever you spoke to doesn't sound like they know what they are talking about.

Bailey_Barker

I am definitely in Nuvos. The changes which you refer to are only applicable to those born after 1957. I have spoken to 3 so called experts about my pension situation and I have received 3 different answers so I was hoping to hear from someone with actual personal experience of how it works.

Kynthia

Have you rung MYCSP as they are your pension administrator? Ask to have an answer in writing rather than take what the contact centre tells you verbally.

Are you saying that you contribute more than 2.3% of your pensionable pay as I thought that was the standard unless you were buying additional pension?

I can't say that I know anyone who has worked beyond pension age with a civil service pension so I don't know the answer. This is because I don't believe there's any benefit to deferring claiming after the scheme pension age. Partial retirements are becoming more popular though.

xylophone

http://www.civilservicepensionscheme.org.uk/media/181383/nsnps_apr16-v2.pdf

http://www.civilservicepensionscheme.org.uk/media/181380/nrb1-april-2016.pdf

Nuvos Scheme Booklets but your particular situation (contributions after Scheme Retirement Age) does not appear to be covered (as it is in (for example), the BAE Systems Nuvos pension booklet which says :-


"Alternatively, you may choose not to start to receive a
pension until you leave employment with the Company.

In this case, if you choose to continue to make Basic
Contributions to the Scheme, your pension will be
calculated as shown on page 5. Pension which you
earned before Normal Retirement Date will be increased
for late payment up to your actual retirement date.

Pension which you earn during any period after Normal
Retirement Date will be increased on a comparable basis
for each year beyond the first anniversary of your Normal
Retirement Date which occurs after the period of that
same accrual."


You need to write to MyCSP and ask what arrangements apply to pension resulting from contributions after Scheme NRA.

xylophone

Are you saying that you contribute more than 2.3% of your pensionable pay as I thought that was the standard unless you were buying additional pension?

I note that page 5 of the BAE systems booklet ( see my post above) says


"Each Scheme Year you will earn a pension amount equal
to 2.3% of Pensionable Salary received in that period
which will be credited to your Pension Account.
If you joined the Scheme on or before 31 January 2011,
in each subsequent year, the pension amount accrued in
your Pension Account relating to Pensionable Service up to
30 June 2011 will be increased in line with the increase in
the Retail Prices Index (RPI) and for the pension amount
accrued in your Pension Account relating to Pensionable
Service on and after 1 July 2011 by the percentage
increase in the Consumer Prices Index (CPI).
If you joined the Scheme on or after 1 February 2011,
the pension amount accrued in your Pension Account will
increase annually in line with the percentage increase in
the Consumer Prices Index (CPI)."

Kynthia

xylophone wrote: »

I note that page 5 of the BAE systems booklet ( see my post above) says


"Each Scheme Year you will earn a pension amount equal
to 2.3% of Pensionable Salary received in that period
which will be credited to your Pension Account.
If you joined the Scheme on or before 31 January 2011,
in each subsequent year, the pension amount accrued in
your Pension Account relating to Pensionable Service up to
30 June 2011 will be increased in line with the increase in
the Retail Prices Index (RPI) and for the pension amount
accrued in your Pension Account relating to Pensionable
Service on and after 1 July 2011 by the percentage
increase in the Consumer Prices Index (CPI).
If you joined the Scheme on or after 1 February 2011,
the pension amount accrued in your Pension Account will
increase annually in line with the percentage increase in
the Consumer Prices Index (CPI)."

I was mistaken this morning. I now realise you build a pension of 2.3% of your pensionable earnings each year (I believe Alpha is 2.32%) plus annual CPI increases, not that your contributions are 2.3%. I was never in Nuvos and haven't had a benefit statement for Alpha yet so I've still a lot to learn.

hugheskevi

I am definitely in Nuvos. The changes which you refer to are only applicable to those born after 1957.

The protection requires both to be of a particular age and also to be an active member or on a qualifying break as at 31st March 2012 (service in other public service pension schemes also counts).

As you say you are definitely in nuvos but that you have only been in nuvos since November 2012 you presumably were in another public service pension scheme or on a qualifying break as at 31st March 2012, as set out in annex B at this link

There is nothing in the nuvos scheme rules about anything you describe. This is not surprising, as nuvos pensions are accrued in the same way pre and post NPA (although when you commence a nuvos pension after NPA it is enhanced to reflect the late commencement), so there does not need to be anything different for those over NPA in the rules (age 75 is included in the rules, as this is a tax feature affecting pension commencement lump sums). Unfortunately that means there is nothing to reference to, aside from referencing rules C.2 and C.3 and the absence of any different treatment for those over NPA.

Bailey_Barker

Thanks to everyone. It all makes sense now. I really appreciate the advice.:D