civil service pension query

dav64

I've loved reading through the threads regarding civil service pensions but there are still a few things I'm conflicted with:
I left the CS in 2007 with 20 years service. I'm 55 this December and would like to start my pension (classic). I'd been using the modeler as my calculator for the past year but apparently I shouldn't have been (it's for current employees only). I can't find a calculator which asks for a leaving date in order to calculate the pension increases, does anyone know of one? If there isn't one would I get a rough estimate if I use the classic equation (final salary divided by 80 etc) and then increased this figure by the annual cpi increases from 2007 (then subtracted 5% per year for early redemption)? I've requested a quote but it's going to take 3 weeks and I'm very impatient!
Grateful for anyones thoughts.

sammyjammy

I reckon you are pretty much spot on, if it takes only three weeks I'll pay it myself!

moo121

Try the spreadsheet at::

https://www.gov.uk/government/publications/public-service-pensions-increase-2019




My understanding that this includes the multipliers you apply to preserved pensions depending on the year they were deferred. Seemed to work on mine a couple of years ago.

You will, of course, then need to apply the actuarial reduction for early payment......

Silvertabby

25-Dec-06 to 24-Jan-07 1.3509
25-Jan-07 to 24-Feb-07 1.3469
25-Feb-07 to 24-Mar-07 1.3429
25-Mar-07 to 22-Apr-07 1.3389
23-Apr-07 to 22-May-07 1.3348
23-May-07 to 22-Jun-07 1.3305
23-Jun-07 to 22-Jul-07 1.3264
23-Jul-07 to 22-Aug-07 1.3221
23-Aug-07 to 22-Sep-07 1.3180
23-Sep-07 to 22-Oct-07 1.3137
23-Oct-07 to 22-Nov-07 1.3096
23-Nov-07 to 22-Dec-07 1.3054
23-Dec-07 to 22-Jan-08 1.3012

Use the multiplication factor for your actual date of leaving to uprate your deferred pension. Then deduct the early retirement %.

Note: If your date of leaving is the last date of the factor, use the next one. ie, left 22 Dec 07 use 1.3012.

dav64

Many thanks for the swift replies.
This all makes sense now. I already have a quote for starting my pension in August this year (I'll be 54 so 5 months too early for pension increases), It shocked me when it arrived as it was less than I was led to believe. Using the replies above, am I right if I take the actuarially reduced pension figure in that quote and multiply it by the figures for my leaving date to calculate how much pension I will recieve upon turning 55? And do I do the same equation to discover the top up my lump sum will recieve when I turn 55? Once again, many thanks for any answers.

Dazed_and_confused

This all makes sense now. I already have a quote for starting my pension in August this year (I'll be 54 so 5 months too early for pension increases), It shocked me when it arrived as it was less than I was led to believe. Using the replies above, am I right if I take the actuarially reduced pension figure in that quote and multiply it by the figures for my leaving date to calculate how much pension I will recieve upon turning 55?

I don't think so. You take your original pension amount from 2007 and multiply it by the factor supplied by Silvertabby.

Depending on when you left your deferred pension will have increased in value by between 30 and 35%.

Then you multiply that figure by the actuarial reduction factor. Which is available somewhere on the Civil Service pension website.

But in broad terms slight less than a 25% reduction for taking it 5 years early

We don't know which factor is applicable to you but using one mid year (1.33) it might look something like this,

£10,000 deferred pension becomes £13,300 now.
But is then reduced to £10,000 if you choose to take it 5 years early.

Dazed_and_confused

There's a thread here which suggests it's more like 4.25% once you start taking it as much as 5 years early.

So the £13,300 would become closer to £10.5k

https://forums.moneysavingexpert.com/discussion/5565513/pcsps-actuarial-reduction

dav64

Thanks Dazed. I have a quote for starting my pension at 54:

Gross pension - £5651.69 (as of 31 Jan 2007)
Pension, actuarilly reduced by a factor of 0.7827 payable from 1 Aug 2019 - £4423.58
Net lump sum after any wps adjustments £16955
Lump sum actuarilly reduced by a factor of 0.8839 - £14986

What I'm trying to figure out is the amounts I will recieve once I turn 55 in December (5 months away) if I start this pension in August. My factor from the charts is 1.3469.
Basically, I'm trying to figure out if I'm going to be out of pocket substantially by beginning the pension in August instead of December. I have reasons for starting in August which are way too boring to go into here.
Many thanks.

Dazed_and_confused

What I'm trying to figure out is the amounts I will recieve once I turn 55 in December (5 months away) if I start this pension in August.

That seems a totally different question to your original post.

What makes you think it won't still be £4423.58?

dav64

Because the quote states this:

Calculation date - 1 August 2019
The preserved benefits that you were awarded on leaving service will have increased each year in line with inflation. However, we will not pay these pension increases until you reach the age of 55. The benefits shown in this quote are those that you were awarded when you left employment.

Am I reading it wrong and missing something?

Dazed_and_confused

Having just found this thread I think you can safely ignore everything I've posted so far

https://forums.moneysavingexpert.com/discussion/5609785/civil-service-pension-annual-increases

:embarasse