Civil Pension Lump Sum Payment On 60th Birthday

FloraandFauna

The old Classic pensions come with an automated lump sum. And if the OP is 60 next month, he's the right age to have a deferred Classic waiting for him.

Kynthia

FloraandFauna said:

The old Classic pensions come with an automated lump sum. And if the OP is 60 next month, he's the right age to have a deferred Classic waiting for him.

They said earlier they had Premium, Nuvos and Alpha, with Premium being the majority.

Premium does pay out at 60 while the others don't, and none have an automatic lump sum. So the OP seems to have decided to take the Nuvos and Alpha early, plus be reducing their annual pension to create a lump sum.

FloraandFauna

Ach, my mistake, sorry Kynthia, wasn't reading properly.

hyubh

Kynthia said:

They said earlier they had Premium, Nuvos and Alpha, with Premium being the majority.

Well, they initially referred to 'my service (e.g. Classic Pension, Alpha etc.)' (post 4), before asserting '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' (post 5).

Was aggregation (in the sense of covering Classic to Premium service) automatic if a rejoinder didn't elect for Classic Plus...?

Kynthia

FloraandFauna said:

Ach, my mistake, sorry Kynthia, wasn't reading properly.

I expect people getting some civil service pension at age 60, and are almost that age now would more often than not have some Classic service as Premium was only open to new joiners for about 5 years. So it's easy to think that when they are also talking about getting a lump sum.

What I thought was unexpected was the OP says they have the majority of their pension in Premium and some in Nuvos. I don't think it's very common to have both of those as Premium members didn't move into Nuvos and rejoiners often went back into their original scheme. However there are probably some dates of leaving and rejoining where that can be the case.

Truegho

sheslookinhot said:

A stranger thread I’ve yet to see.

What do you mean??? There is NOTHING strange about it. I just asked a simple question. We can't ALL be experts on pension law, you know.

Truegho

Kynthia said:

Your pensions don't come with an automatic lump sum. So it seems like you've decided to give up some of your annual pension in exchange for a lump sum now. It doesn't appear that you have considered whether this is a good thing for you to do or not. Are you leaving yourself with enough to live on for the rest of your life and do you actually need a lump sum when you're going to be getting a monthly income from them?

How much annual pension have you agreed to give up? I can't understand how you are able to have agreed this with the civil service pension administrator without knowing the before and after annual amounts. If you don't know the numbers, ring them back and ask for them. 

But I HAVE been in touch with them, and they have explained everything. So now I know where I stand. I would like to now thank everybody on here who gave me advice. I won't trouble you anymore now.

Truegho

Dazed_and_C0nfused said:

sheslookinhot said:

A stranger thread I’ve yet to see.

Have to agree, this is one of the most bizarre comments I've ever seen on here!

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.

I can't believe what I am reading! A person who is not an expert on pensions, and who is only asking a simple question about his benefits, is being branded as posting "bizarre" comments?? For goodness sake!

Truegho

Dazed_and_C0nfused said:

Any average isn't really relevant to you.

What you will get will be based on your service and full time equivalent salary.

Was the pension amount not shown on the paperwork you have received?

Is 60 the normal pension age for all the pensions or are you taking any earlier than the normal pension age?  If so there is a strong chance you will be a reduced pension as a result (and a smaller lump sum).

The pension amount HAS now been shown on my pension statements, so I know exactly where I stand now, thanks.

Truegho

Kynthia said:

Your pensions don't come with an automatic lump sum. So it seems like you've decided to give up some of your annual pension in exchange for a lump sum now. It doesn't appear that you have considered whether this is a good thing for you to do or not. Are you leaving yourself with enough to live on for the rest of your life and do you actually need a lump sum when you're going to be getting a monthly income from them?

How much annual pension have you agreed to give up? I can't understand how you are able to have agreed this with the civil service pension administrator without knowing the before and after annual amounts. If you don't know the numbers, ring them back and ask for them. 

But I haven't given up some of my annual pension for a lump sum, because they assured me that if I just took part of the Premium/Classic lump sum which I am automatically entitled to, my annual pension would NOT be deducted. However, if I did take the MAXIMUM lump sum of around £5,000, my annual pension WOULD be reduced. So you see, I have played it wise. As for the other, smaller amounts of Alpha and Nuvos, well, I have linked all those together with the Classic/Premium pension, which again, I should point out, will not be deducted from.