Alpha / classic civil service pension calculator

WHUFC123

Hello is there anyone out there who knows if the calculator is correctly working, my wife has checked and I’m sure the alpha bit is not correct
basic info is 31 years service, classic until 2015, alpha since salary is 70k and the calc is saying if she goes at 55 in December 56k lump, and a pension of 23,400 , but that the ALPHA part goes from 8300 a year down to 6000 a year, but I’d of thought it would reduce more than that seeing only paid in since 2015 and leaving early, anyone know if that’s right and how there actual alpha reduction is worked out ?
because if this is right is worth taking it as the two instead of just all as classic
thanks

Dazed_and_C0nfused

Is her normal Alpha retirement age 67?

Is £8,300 the amount accrued to 31 March 2020, 31 March 2021 or December 2021?

WHUFC123

March 2021

hugheskevi

WHUFC123 said:

basic info is 31 years service, classic until 2015, alpha since salary is 70k and the calc is saying if she goes at 55 in December 56k lump, and a pension of 23,400 , but that the ALPHA part goes from 8300 a year down to 6000 a year, but I’d of thought it would reduce more than that seeing only paid in since 2015 and leaving early, anyone know if that’s right and how there actual alpha reduction is worked out ?

March 2021

Another 9 months of alpha between March and December would add £1,218 of alpha pension to the £8,300 so give total alpha at date of leaving of £9,518.

£6,000 / £9,518 = 63%

Which is a reduction of 37%.

because if this is right is worth taking it as the two instead of just all as classic

Are you aware of McCloud judgment? If the statement above is about that, then the choice would not be made at December 2021, but retrospectively in a couple of years - the initial retirement would be based on classic to 2015 and alpha thereafter.

anyone know if that’s right and how there actual alpha reduction is worked out ?

The factors are at this link. A reduction of 45.2% seems to be expected for early retirement at age 55 based on NPA of 67. The calc above suggested a reduction of around 37%, not too far away, but more than just rounding.

WHUFC123

She is looking at retiring early I.e. December this year at 55, hence the choice of classic or both classic and Alpha combined, and yes she has had significant pay rises in last 4 years Hugheskevi

hugheskevi

WHUFC123 said:

She is looking at retiring early I.e. December this year at 55, hence the choice of classic or both classic and Alpha combined, and yes she has had significant pay rises in last 4 years Hugheskevi

So initially the retirement option will be based on classic to 2015 and alpha thereafter, and the choice is to take either or both classic / alpha pension.

In 2023 a retrospective choice will be offered as part of the McCloud remedy, offering the retrospective alternative of all service up to 2021 to be based on classic and all the figures revisited.

I'd already edited my response above with the extra information about the as at date of the £8,300 figure, so the initial reference to significant pay rises was removed just before you posted the follow-up

WHUFC123

Thank you, 

WHUFC123

another quickie and a quick one, if for instance she just resigned, November 30 this year, could she claim tax rebate as paid tax as salary but only earned about 48k, and can you also get N.I. Back too . 

Then possibly take pension 30th March 2022, as pension gets cpi increase around 6 April that way as inflation looks to be on the rise at present if would get a little rise on pension from second payment ( is this correct )

NedS

WHUFC123 said:

another quickie and a quick one, if for instance she just resigned, November 30 this year, could she claim tax rebate as paid tax as salary but only earned about 48k, and can you also get N.I. Back too . 

Then possibly take pension 30th March 2022, as pension gets cpi increase around 6 April that way as inflation looks to be on the rise at present if would get a little rise on pension from second payment ( is this correct )

If she leaves employment mid financial year, she may have paid too much tax and may be able to claim a tax rebate. There is no rebate on NI.

Yes, CS pensions increase by CPI inflation (set the previous Sept) each April. The pension will increase by CPI regardless of whether it is in deferment or currently taken.

WHUFC123

Sorry for delay, so even if she just leaves and does not take pension for a while are you saying she would still get the CPI / inflation increase ? Or would you need to take the pension before April to qualify for the inflation rise ,,

MX5huggy

She’s gets the increase whether she’s is contributing (still employed), the pension is deferred or in payment.