Civil Service pension query

Kynthia

Unlike some similar schemes, the Civil Service Pension annual statements do not include the assumption that you will continue working and building future service in their figures. They only show what you have accumulated so far (to the end of the march just gone if I remember correctly). So if you leave employment and choose not to commence your pension early there shouldn't be any reduction for this.

One caveat that people don't realise is that the statements are a simple look at your pension and aren't the same as a detailed quote, which you should obtain before deciding to retire. It's only when you decide to retire early, leave employment or get a quote that MYCSP review your employment history, check that your reckonable service figure is correct, contact prior employers to check details (If your service with them is linked to your current pension), and calculate your actual best final salary according to the terms of the scheme (Classic and Premium differ). So the pension you get could differ from your annual statement, particularly if they discover periods of part time work or unpaid leave they were unaware of when calculating your statement.

BobQ

Satrdayboy wrote: »

My wife works for the Civil Service and has over 35 years service. She has just received her annual pension statement, and is a member of both Classic and Alpha. At 60 she would get £7000 pa plus lump sum of £21000 and from Alpha £2000 at 67. My question is if she retired early for example 57 but funded her retirement from her Sipp and Isas would thes figures stay the same? I understand that on her pension statement it does say that the figures do not include any projected pension benefits.

These are separate pensions. If you are looking at a forecast at normal retirement age it is only an estimate.

Classic is now frozen. You need to know how many years (Y) have been accrued at the date it closed (2016 I think). Her pension will then be Y/80 times her final salary. Say she retires on her 58th birthday The actual pension will depend on her "best final salary" when she retires. ( It will probably be salary earned in year before her 58th birthday but it might be another 12 month period in the previous 3 years). At that point she will have a pension based on that salary.

If the Classic pension when she retires at 58 is drawn it will be reduced by about 9% and then rise by CPI. If she leaves it until 60 it will rise .in line with CPI in those two years and will not be reduced.

Alpha will have accrued a pension at the date of retirement (not the figure projected to 67). If left undrawn to her state retirement age it will rise by CPI for her life. But if she draws it at 58 or even 60 it would be reduced significantly by around 30-40%. and then rise by CPI

Tromking

Lest we forget also, that as a result of a recent action taken against the Government by the Firefighters and Judges, public sector workers who have been moved onto schemes like Alpha could ( I stress could) be returned back to their old schemes like Classic.

swanny65

Tromking wrote: »

Lest we forget also, that as a result of a recent action taken against the Government by the Firefighters and Judges, public sector workers who have been moved onto schemes like Alpha could ( I stress could) be returned back to their old schemes like Classic.

Good point but i doubt very much those of us moved from Classic to Alpha for our final years service will be returned to Classic.

BobQ

swanny65 wrote: »

Good point but i doubt very much those of us moved from Classic to Alpha for our final years service will be returned to Classic.

I doubt it too but that is the implication of appeal court ruling and unless the Government wins the appeal against the right to appeal to the Supreme Court they will have to do something. Since retrospective changes are probably illegal, my bet would be that from 1/4/20 they close Classic completely and move all remaining staff to Alpha, saying that this is what they would have done in 2016 if there was an appeal.

hugheskevi

I doubt it too but that is the implication of appeal court ruling and unless the Government wins the appeal against the right to appeal to the Supreme Court they will have to do something.

Permission to appeal has been refused - https://www.civilservicepensionscheme.org.uk/members/mccloud-judgement/

The Civil Service Pension Scheme's stated position is:

Impact of the Court of Appeal Ruling
The Government is considering the impact of the Court of Appeal decision including any impact on other public service schemes including the civil service pension schemes and we will provide a further update as soon as more information becomes available.

Please be assured that the pension you have earned to date is safe.