Clueless on Pensions - Civil Service Alpha or Partnership?

jimi_man

thespaniel1 said:

final question - if that's the case is the employer contribution of 27.9% just what it takes to fund a yearly payment of 2.32% in perpetuity? 

Sort of. It's a figure estimated for how much it costs.. There needs to be a specified employer contribution figure - (I think to work out the annual allowance) but it's a nominal figure only. It might be more, it might be less. If you turn out to live till 110 then clearly it will be wrong, also, if you only live till one year past retirement age then it will also be wrong. It's of no relevance to you (other than as stated above), so it can be ignored.

german_keeper

I think I have read or been told that a lot of the reason behind the theoretical employer contribution is about accounting and budgeting between the Treasury and govt depts. 

stud26

I too am in the position of choosing between Alpha and Partnership. However, my contract length is just shy of two years with no guarantee of an extension or permanent offer.
Should I go Partnership to build up the pot then switch to Alpha in case of an extension? Any advice is greatly appreciated.

glider3560

stud26 said:

I too am in the position of choosing between Alpha and Partnership. However, my contract length is just shy of two years with no guarantee of an extension or permanent offer.
Should I go Partnership to build up the pot then switch to Alpha in case of an extension? Any advice is greatly appreciated.

Do you have a pension you could transfer into Alpha?  If you don't and can afford to, maybe open a SIPP with a company like Hargreaves Lansdown, deposit £1,000 but keep it in cash then transfer that into Alpha.  Then you get to keep the Alpha pension benefits, even if employed for less than 2 years.

stud26

glider3560 said:

Do you have a pension you could transfer into Alpha?  If you don't and can afford to, maybe open a SIPP with a company like Hargreaves Lansdown, deposit £1,000 but keep it in cash then transfer that into Alpha.  Then you get to keep the Alpha pension benefits, even if employed for less than 2 years.

Thanks. I do have a personal pension. Can you explain how this helps to negate the lack of 2 years of service?

jimi_man

stud26 said:

glider3560 said:

Do you have a pension you could transfer into Alpha?  If you don't and can afford to, maybe open a SIPP with a company like Hargreaves Lansdown, deposit £1,000 but keep it in cash then transfer that into Alpha.  Then you get to keep the Alpha pension benefits, even if employed for less than 2 years.

Thanks. I do have a personal pension. Can you explain how this helps to negate the lack of 2 years of service?

Yes. Under the scheme rules, a transfer in from a personal pension allows your pension to be preserved even if you have less than two years’ service.

glider3560

stud26 said:

glider3560 said:

Do you have a pension you could transfer into Alpha?  If you don't and can afford to, maybe open a SIPP with a company like Hargreaves Lansdown, deposit £1,000 but keep it in cash then transfer that into Alpha.  Then you get to keep the Alpha pension benefits, even if employed for less than 2 years.

Thanks. I do have a personal pension. Can you explain how this helps to negate the lack of 2 years of service?

Have a look at Section 4, page 4 of https://www.civilservicepensionscheme.org.uk/media/95350/alpha_schemeguides4_colour_v3.pdf.  There is a question "I transferred in a pension from another pension scheme. Does this affect anything?" and the answer says "A transfer in from a personal pension allows your pension to be preserved even if you have less than two years’ service."

It basically removes the need to have two years service to retain the benefits (a "preserved pension").

stud26

glider3560 said:

Have a look at Section 4, page 4 of https://www.civilservicepensionscheme.org.uk/media/95350/alpha_schemeguides4_colour_v3.pdf.  There is a question "I transferred in a pension from another pension scheme. Does this affect anything?" and the answer says "A transfer in from a personal pension allows your pension to be preserved even if you have less than two years’ service."

It basically removes the need to have two years service to retain the benefits (a "preserved pension").

That's amazing, thanks. Is there a minimum/proportional amount that needs to be transferred?

stud26

Is it best to move my entire private pension to alpha?

morrow56

I very recently transferred a DC Pension into Alpha
Initial quote was from a DC  Fidelity pension of £26848 - I will receive £1653 annually for from Alpha for that
I am 62
The actual value on transfer day was some £500 more - can anyone confirm my initial quote of £1653 will actually be a wee bit higher