Civil Pension Lump Sum Payment On 60th Birthday

Truegho

Sorry, guys, but I am as confused as ever. I still maintain that because I got a letter from CSPS last year claiming that I would be paid a "lump sum" on my 60th birthday, a lump sum is what I should get. I have even filled in the forms to claim my pension.

So why do some of you doubt that I will be paid the lump sum?

Truegho

Dazed_and_C0nfused said:

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/

Yes, I have informed CSPS that I DO wish to take ALL of the pensioln benefits I have accrued from all three schemes. Did they inform me last year if I want to link all the deferred pension benefits together and take them all at the same time, rather than claim each separately. I opted to combine ALL the benefits, so surely this is what I should get when I reach 60. Again, I must stress that they DID say that they would pay me a lump sum on my 60th birthday, so surely this is right?

Truegho

Truegho said:

Dazed_and_C0nfused said:

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/

Yes, I have informed CSPS that I DO wish to take ALL of the pensioln benefits I have accrued from all three schemes. Did they inform me last year if I want to link all the deferred pension benefits together and take them all at the same time, rather than claim each separately. I opted to combine ALL the benefits, so surely this is what I should get when I reach 60. Again, I must stress that they DID say that they would pay me a lump sum on my 60th birthday, so surely this is right?

And another thing: is it REALLY worthwhile waiting until I am 65 until I take ALL of my deferred Civil Service pensions along with my normal State Pension? I mean I left my longest period of Civil Service employment - eleven years in total on PREMIUM PENSION SCHEME - and the remaining two schemes, Alpha and Nuvos area accrued after just a few causal Civil Service jobs here and there. I mean, if I DID wait until I am 65, how much more would I expect to receive? If it doesn't amount to all that much extra, then I think I should DEFINITELY take my lump sum early.

molerat

Truegho said:

Sorry, guys, but I am as confused as ever. I still maintain that because I got a letter from CSPS last year claiming that I would be paid a "lump sum" on my 60th birthday, a lump sum is what I should get. I have even filled in the forms to claim my pension.

So why do some of you doubt that I will be paid the lump sum?

They are doubtful as you inferred that a lump sum would magically appear in your bank account on your 60th birthday with no further action from you and pointed out that without claiming your pension that would not happen.  Now you have clarified that you have actually claimed the pensions to start on your 60th birthday then yes any lump sums associated with those pensions will be paid to you. Quite often though those letters from CSPS are quite generic and refer to what you might get rather than what you are actually entitled to receive.

xylophone

I really don't understand what is going on here.
You state

Yes, I have informed CSPS that I DO wish to take ALL of the pensioln benefits I have accrued from all three schemes. Did they inform me last year if I want to link all the deferred pension benefits together and take them all at the same time, rather than claim each separately. I opted to combine ALL the benefits, so surely this is what I should get when I reach 60. 

Then you ask

 is it REALLY worthwhile waiting until I am 65 until I take ALL of my deferred Civil Service pensions along with my normal State Pension?  

But from what you have said above, you have  already requested My CSP to combine the Premium/Nuvos/Alpha pensions and asked for payment to start on your 60th birthday?

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

You followed the process described in the above for claiming a deferred pension?

In which case, according to Guide above

Your pension will be paid monthly in arrears once you have retired.

Any lump sum you requested is paid into your account once all the documentation is received and your benefits have been processed.

You should not enter into any financial commitments until you have received the lump sum payment in your bank account.

Silvertabby

If the CS operates in a similar way to the LGPS, then the wording will be along the lines of 'the pension lump sum is payable on/from your 60th birthday/date of retirement, and the first monthly pension from the next payroll date'.

The actual date of payment then depends on a number of essential requirements being met, usually:

1.  All documentation has been received from the pension fund member.  Ie, pension option choices, bank details, birth and marriage certificates.

2.  All necessary documentation has been received from the employer/payroll. (ADD: shouldn't be neccessary for a deferred record).

3. Payment date will depend on the frequency of lump sum pay schedules.  Even if the CS run daily payments, if the 60th birthday falls on a Saturday or Sunday then the earliest possible payment date would be the following Monday.

Truegho

Silvertabby said:

If the CS operates in a similar way to the LGPS, then the wording will be along the lines of 'the pension lump sum is payable on/from your 60th birthday/date of retirement, and the first monthly pension from the next payroll date'.

The actual date of payment then depends on a number of essential requirements being met, usually:

1.  All documentation has been received from the pension fund member.  Ie, pension option choices, bank details, birth and marriage certificates.

2.  All necessary documentation has been received from the employer/payroll. (ADD: shouldn't be neccessary for a deferred record).

3. Payment date will depend on the frequency of lump sum pay schedules.  Even if the CS run daily payments, if the 60th birthday falls on a Saturday or Sunday then the earliest possible payment date would be the following Monday.

Hi. Just to update you on the situation with claiming all my deferred Civil Service pensions. I finally received the claim forms today from CSPS. However, they only included the Nuvos and Alpha final amounts, which were the lowest amounts, and NOT the Premium one, which was my longest period of service (11 years) and which is the higher amount. Is this normal procedure to send the larger amount in a separate envelope, or do you think they may have forgotten to include the Classic claim form?

Silvertabby

Truegho said:

Silvertabby said:

If the CS operates in a similar way to the LGPS, then the wording will be along the lines of 'the pension lump sum is payable on/from your 60th birthday/date of retirement, and the first monthly pension from the next payroll date'.

The actual date of payment then depends on a number of essential requirements being met, usually:

1.  All documentation has been received from the pension fund member.  Ie, pension option choices, bank details, birth and marriage certificates.

2.  All necessary documentation has been received from the employer/payroll. (ADD: shouldn't be neccessary for a deferred record).

3. Payment date will depend on the frequency of lump sum pay schedules.  Even if the CS run daily payments, if the 60th birthday falls on a Saturday or Sunday then the earliest possible payment date would be the following Monday.

Hi. Just to update you on the situation with claiming all my deferred Civil Service pensions. I finally received the claim forms today from CSPS. However, they only included the Nuvos and Alpha final amounts, which were the lowest amounts, and NOT the Premium one, which was my longest period of service (11 years) and which is the higher amount. Is this normal procedure to send the larger amount in a separate envelope, or do you think they may have forgotten to include the Classic claim form?

I would have thought that they would have sent everything together, unless they are still waiting for some premium information.

Is there a contact telephone number on your claim form covering letter?

JGB1955

Just as an aside - I wouldn't expect you to get your first monthly pension payment until one calendar month after your birthday.  For example - my birthday is 5th January and I get my monthly pension on the 4th of each month.  There was a further delay in paying my lump sum and first payment - it took until the middle of March to turn up.

Truegho

Silvertabby said:

Truegho said:

Silvertabby said:

If the CS operates in a similar way to the LGPS, then the wording will be along the lines of 'the pension lump sum is payable on/from your 60th birthday/date of retirement, and the first monthly pension from the next payroll date'.

The actual date of payment then depends on a number of essential requirements being met, usually:

1.  All documentation has been received from the pension fund member.  Ie, pension option choices, bank details, birth and marriage certificates.

2.  All necessary documentation has been received from the employer/payroll. (ADD: shouldn't be neccessary for a deferred record).

3. Payment date will depend on the frequency of lump sum pay schedules.  Even if the CS run daily payments, if the 60th birthday falls on a Saturday or Sunday then the earliest possible payment date would be the following Monday.

Hi. Just to update you on the situation with claiming all my deferred Civil Service pensions. I finally received the claim forms today from CSPS. However, they only included the Nuvos and Alpha final amounts, which were the lowest amounts, and NOT the Premium one, which was my longest period of service (11 years) and which is the higher amount. Is this normal procedure to send the larger amount in a separate envelope, or do you think they may have forgotten to include the Classic claim form?

I would have thought that they would have sent everything together, unless they are still waiting for some premium information.

Is there a contact telephone number on your claim form covering letter?

I have now been in touch with Civil Service Pensions and they told me that my largest deferred amount due, the Premium one, is done separately from the two smaller ones. They also told me that as well as getting my due lump sum for all three of my pensions together, I will also get a regular monthly payment "for life". I didn't know there was also a "for life" regular payment. So how exactly does this work, guys, and what is the average monthly paymentor for an ex-Civil Servant who will be 60 on 1st March this year?