Civil Pension Lump Sum Payment On 60th Birthday

Truegho

As an ex Civil Servant, who has accrued deferred pension benefits from various jobs in various departments since Nov 1988, will I be automatically paid a lump sum from that deferred pension amount by Civil Service Pensions on my 60th birthday this coming March? I have been in touch with ÇSPC and from what I can gather, I don't have to wait until reaching 65 (normal retirement age) before I can claim that lump sum.

Is that right? And if so, would you recommend my claiming the lump sum when I reach 60 in a few weeks time?

Dazed_and_C0nfused

I don't think you can have the lump sum without also claiming your pension.

Is that what you want to do and if so is the normal pension age for the scheme(s) you were a member of 60 or are you going to take an actuarial reduction to get the lump sum?

xylophone

I have been in touch with ÇSPC and from what I can gather, I don't have to wait until reaching 65 (normal retirement age) before I can claim that lump sum.

What is normal  pension age for your section of the scheme?

https://www.civilservicepensionscheme.org.uk/members/deferred/information-for-deferred-members/

Truegho

Thank you for your reply. When you say "without claiming your pension", do you mean I will have to wait until 65 before I can claim non-Civil Service Pension, or do you mean claiming my deferred Civil Service Pension? The CSPS did tell me that they would pay me a "lump sum" when I reached 60, based on all the Civil Service Pension schemes I was in during my service (e.g. Classic Pension, Alpha etc.). I got the statement from this morning listing ALL the schemes I was in, value of final pension earnings etc. However . . . I am still unsure about this lump sum they said I would get on my 60th birthday. So I really need full clarification on once I reach 60 on 1st March, will all deferred pension amounts DEFINITELY be paid into my bank accoun in one big amount? And if it is, is there a disadvantage to claiming my deferred pension before I reach 65?

Truegho

Dazed_and_C0nfused said:

I don't think you can have the lump sum without also claiming your pension.

Is that what you want to do and if so is the normal pension age for the scheme(s) you were a member of 60 or are you going to take an actuarial reduction to get the lump sum?

I was in the Premium, Nuvos and Alpha pension schemes. The longest scheme I was in was the Premium one, from Nov 1988 to January 2003. Normal Retirement Age for Premium is 60, so WILL I get a lump sum payment come my 60th birthday in March? I am still unclear.

Dazed_and_C0nfused

Pretty sure you cannot get a lump sum from the Premium pension scheme without actually taking your pension at the same time.

Premium does not have an automatic lump sum like Classic does.

Have you informed Civil Service pensions that you want to take the Premium pension and if so did you opt for a smaller pension (in return for a lump sum?).

If not I'm not sure why you expect to get one in March?

When you retire you can choose to give up part of your pension for a tax-free lump sum. You can choose how much extra lump sum you want to take up to a maximum set by HMRC. Other restrictions may apply if you left the scheme before 1 October 2007.

You must give up £1 of annual pension for each £12 of lump sum you take. You can find out how much lump sum you can take, and the effect it will have on your pension by using the calculator here.

https://www.civilservicepensionscheme.org.uk/members/premium-scheme-guide/

hugheskevi

As an ex Civil Servant, who has accrued deferred pension benefits from various jobs in various departments since Nov 1988, will I be automatically paid a lump sum from that deferred pension amount by Civil Service Pensions on my 60th birthday this coming March?

No, you have to claim your pension for it to be paid, it is not automatic. 

from what I can gather, I don't have to wait until reaching 65 (normal retirement age) before I can claim that lump sum...I was in the Premium, Nuvos and Alpha pension schemes. The longest scheme I was in was the Premium one, from Nov 1988 to January 2003. Normal Retirement Age for Premium is 60, so WILL I get a lump sum payment come my 60th birthday in March? I am still unclear.

You can claim any or all of your pensions anytime you wish as you are over age 55.

Presumably in 2002 you decided to convert your classic pension into premium, is that correct? But in a later post you mention being in classic?

Premium is normal pension age of 60 and does not have any automatic lump sum - if you want a lump sum, you choose to commute pension into lump sum at the (very poor) exchange rate of £1 pension = £12 lump sum. Nuvos is normal pension age of 65 and alpha is normal pension age of 66-67 (the same as your State Pension age). Classic is normal pension age of 60 and has an automatic lump sum (but you will only receive that if you claim your pension).

So I really need full clarification on once I reach 60 on 1st March, will all deferred pension amounts DEFINITELY be paid into my bank account in one big amount? 

MyCSP won't even have your bank account details if you have not claimed your pension. Your claim will decide which pensions you receive, and what lump sum (if any) you choose.

Pretty sure you cannot get a lump sum from the Premium pension scheme without actually taking your pension at the same time. 

That is correct, except in the case of abatement (when you are arguably taking your pension anyhow and as the member is no longer active does not apply in this case).

xylophone

 The Normal Pension Age is 60 in premium and classic but see hugheskevi below re Alpha/Nuvos.

You can claim  pension (s) at 60 and will need to do so if you wish them brought into payment.

Check  question of actuarial reduction in Alpha/Nuvos
You can obtain the CS Scheme Guides here

https://www.civilservicepensionscheme.org.uk/members/premium-scheme-guide/

https://www.civilservicepensionscheme.org.uk/members/classic-scheme-guide/

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

https://www.civilservicepensionscheme.org.uk/members/nuvos-scheme-guide/

And see
https://www.civilservicepensionscheme.org.uk/members/deferred/information-for-deferred-members/
How do I claim my pension?

Have you obtained a State Pension Forecast?

https://www.gov.uk/check-state-pension

And your State Pension Age?

https://www.gov.uk/state-pension-age

hugheskevi

xylophone said:

Your Normal Pension Age is 60 in all three sections so that your pension will be paid without actuarial reduction.

It isn't - classic and premium is NPA 60, nuvos is NPA 65 and alpha is NPA=SPA.

xylophone

It isn't - classic and premium is NPA 60, nuvos is NPA 65 and alpha is NPA=SPA.

Thank you hugheskevi - I have corrected the post to avoid confusion.

zagubov

If it's like some other public service pensions, you have to notify them well in advance and specify how much lump sum to take. The decision (and specific such as the size of any lump sum), may be irreversible from the point you press SEND. There may be little or no further communication until the money pops into our account.