Civil Service Pension Idiot

renemote

First time forum poster who is due to signup to the civil service pension having not subscribed previously. I understand the alpha pension accrues at 2.32 per annum with an estimated 1% (cost of living and wotnot) on top. Is the alpha pension paid via a percentage of the pot I have built up over the forthcoming years being paid out for each year of retirement or is the amount accrued the amount paid annually?


E.g if I accrue £20,000 via the alpha pension is this the amount paid (before-tax) each year by the alpha pension or is a percentage of the £20,000 paid each year (assume I have no other pension funds, hence the pension idiot thread title).



If it's a percentage of the £20,000 pot, how would I calculate the potential return?

AnotherJoe

If only the civil service provided a website where its employees could read about the scheme, look at examples, watch a video on it. They really ought to put one together.

mgdavid

don't be an idiot, educate yourself :-)


https://www.civilservicepensionscheme.org.uk/members/alpha-guide/

Peelerfart

"Civil Service Pension Idiot"

Oh dear!

BobQ

If this is your first time posting you must excuse the abuse and sarcasm of the previous posts.


They are just trying to suggest that there is plenty of information available with little effort needed to find it and it would be better if you read the scheme guide first. Frankly, if you are employed in the civil service I am surprised your employer has not sent you the above link.


The Alpha scheme is a Career Average Revaluation (CARE scheme) meaning that when you retire your pension will be the average salary you got over your career.

Tom99

If your pension is eventually £20,000pa, its paid monthly 1/12th on same day each month.

sandsy

You don't have a pension pot at all. You have a promise to receive a specific amount of money when you retire, based on the accrual rate and your salary at the time each portion was accrued.

The amount you pay in is totally irrelevant to how much you receive. You will receive the specific amount no matter how much they ask you to pay in. The amount will increase in retirement each year at a specified figure so that it maintains buying power relative to inflation.

Do look at the link above and try to understand it. It's a hugely valuable part of your remuneration. You understand the part you receive as cash each month - now try and devote some time to understanding the pension part which can be thought of as deferred pay.