Civil Service Pensions - Deferred AND Current Member

hugheskevi

As I understand it they are two very distinct and different pensions schemes. The PCSPS covering Classic, Classic Plus, Premium & nuvos (the Legacy Schemes) and CSOPS (Alpha) introduced in 2015. Both are set out in separate legislation.

That is correct.

My assumption was that when you Opt out of Classic, (breaking the link with final salary), you don't automatically Opt out of Alpha at the same time (unless you explicitly do so). So you can continue working and contributing to Alpha. But now you have me wondering if you have to Opt out of all schemes.

Membership of the schemes is connected, so if you opt out of alpha you also become a deferred member of a connected PCSPS scheme.

Similarly, if you switch to Partnership you become a deferred member of both alpha and a connected PCSPS scheme - this can be helpful in times of below-inflation pay increases, as then a final salary scheme becomes linked to CPI rather than salary.

I also had a question on Opt out and any decision you make on commutation; I assume that when opting out you forego any ability to commute PCSPS payment to lump sum afterwards (i.e. post-deferred), so I guess you make that choice at the point of opt out? (my head hurts on what any McCloud treatments mean on any of this!)

No, all decisions on commutation are taken when you commence the benefit. When you leave the scheme a deferred award is calculated based on years of service and final salary at point of leaving. This award is increased in line with inflation until you decide to commence the pension, and at that point you make your commutation decisions.

CorseyEdge

Thank you, very helpful indeed. So when you Opt out you opt out of all pension arrangements (e.g.Classic and Alpha).

Similarly, if you switch to Partnership you become a deferred member of both alpha and a connected PCSPS scheme - this can be helpful in times of below-inflation pay increases, as then a final salary scheme becomes linked to CPI rather than salary.

I take it that switching to partnership doesn't opt you out, so abatement would apply under those circumstance?

Finally, on @njtt 's previous query - Can you Opt back in to Alpha, after the Classic preserved pension has come into payment, without any retrospective action being taken?

But what I am not sure about is if a person is opted out at 60 and takes the deferred Classic pension (and lump sum) and continues to work. Can that person then rejoin the Alpha scheme for the next (up to) 7 years - so that he/she receives a (deferred) Classic pension and pays into the Alpha scheme? There will not have been 5 years between opting out and rejoining but there will also be no pension to rejoin since the pension will already have crystalllised. 

Thanks again for all your help in understand this @hugheskevi, really appreciated.

german_keeper

I would be fairly certain that being in Partnership means that you are no longer deemed to be within the CS pension scheme. I was in Partnership for a few years before I retired and that was very much the feeling I got. You could check with MyCSP but you would have to hope that in the Helpline lottery you get lucky and talk to someone who does actually have a level of knowledge above the basic. My experience of dealing with MyCSP on Partnership matters is that they don't really know much.

jonnyfive111

Sorry to bump this thread but for those that are interested the civil service pension portal deferred pension section has been updated and now also shows annual revalued deferred pension figures for annual and lump sum payments.

m_c_s

Introducing a third pension name called Alpha-like for the pension between 2015 and 2022 will confuse some in an already complex situation with the McCloud remedy. Probably needed for the computer systems to calculate the separate benefits upto and after April 2022.
The revalue feature to the current date is a nice thing to see at long last!

Although it is still very annoying that MyCSP are painfully slow (3 to 6 months) in dealing with simple queries and corrections to data on their portal.

hugheskevi

m_c_s said:

Introducing a third pension name called Alpha-like for the pension between 2015 and 2022 will confuse some in an already complex situation with the McCloud remedy. Probably needed for the computer systems to calculate the separate benefits upto and after April 2022.

A different name is needed as the benefits are paid out from the member's pre-2015 scheme if the member decides to take alpha benefits for the period 2015-22.

So it would not be correct to call them alpha benefits, as they are not paid from the alpha scheme. It would be extremely confusing to call them classic or premium or nuvos benefits, given the member will already have accrued benefits in their pre 2015 scheme and be used to a completely different benefit structure (and in any event, there is a need to separate the pre and post 2015 benefits given they are completely different structures).

So what is needed is a name that indicates that these are not alpha benefits, but are identical to alpha benefits. Hence 'alpha-like' is a reasonable choice to indicate this.

RGMO

Hi - really interested in this thread.  I have opted out of all PCSP schemes and intend to keep working full time past my 60th birthday - which is next week. 

I've applied to CSP for my (unabated) preserved classic pension and lump sum to be paid once I reach 60 - in line with Rule 3.11 (I've been continuously employed in the civil service since 1987).  CSP has responded advising they are seeking legal advice on what they term as an "anomaly" which was not the policy behind this Rule.  I'm aware that many people have taken advantage of Rule 3.11 to remain in full time employment and draw down their classic pension - it would seem that they do not like people doing this and are seeking a way to deny me, and others, the ability to draw our unabated classic pension.  I cannot see how they can do this as Rule 3.11 is clear, concise and unambiguous!!

Any thoughts??

njtt

Hi RGMO,

I'm in the same position (seeking confirmation that I can take deferred pension and unabated salary since I opted out before 60 and have been continuously employed). 

I first asked this question last February (2023). Despite many reminders and restating of the question they have still not given an answer and I am wondering if they are being deliberately evasive. IAny views on how best to escalate this? (in their last email they said it had been escalated and would be replied to within 5 working days. That deadline has come and gone. This also happened months ago when the same thing happened. When I asked what happens if they missed the 5 day deadline, they said the deadline then lapses and there is no redress).

I am wondering about either a complaint through mycsp or writing to the scheme administrators and claiming maladministration. Any views on how to get a proper response? 

Marcon

njtt said:

Hi RGMO,

I'm in the same position (seeking confirmation that I can take deferred pension and unabated salary since I opted out before 60 and have been continuously employed). 

I first asked this question last February (2023). Despite many reminders and restating of the question they have still not given an answer and I am wondering if they are being deliberately evasive. IAny views on how best to escalate this? (in their last email they said it had been escalated and would be replied to within 5 working days. That deadline has come and gone. This also happened months ago when the same thing happened. When I asked what happens if they missed the 5 day deadline, they said the deadline then lapses and there is no redress).

I am wondering about either a complaint through mycsp or writing to the scheme administrators and claiming maladministration. Any views on how to get a proper response? 

A formal complaint under the scheme's Internal Dispute Resolution Procedure, complaining about the lack of a response, would seem a reasonable way to go: https://www.civilservicepensionscheme.org.uk/about-us/complaints/internal-dispute-resolution-idr/

RGMO

Yes I have lodged a complaint under the IDR stage 1 process, basically stating that I have met the criteria of para 3.11 - which are simple and unambiguous - and am complaining about the decision not to award me my preserved pension at 60.  They have acknowledged my complaint and advised that they will try and respond within 4 months - which seems to be what they are allowed!! It would appear that they don't like people continuing to work full time and draw their full pension at the same time. It is very frustrating but I don't think the ombudsman would entertain an approach until the formal appeals process has been exhausted.