CIVIL SERVICE ALPHA PENSION

Veeno1_123

Hello all,

With the great information that I receieved on a previous post I am now looking at purchasing additional pension on my Alpha scheme (Percentage of monthly salary)

I am 38 and live with my partner only (not married and she is 12 years older). I have had the question put to me 'Added pension for myself only or both me and my dependants'.

The information is very vague and I am uncertain which to go with?

Thanks again

Dazed_and_C0nfused

This might help,

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.civilservicepensionscheme.org.uk/media/95092/alpha_schemeguides6_colour.pdf&ved=2ahUKEwj3zdPU8rPyAhXMuaQKHZPNB88QFnoECAQQBg&usg=AOvVaw36ccmS5D9vBHyhlM8eKerN

Veeno1_123

Thanks I have seen this but looking for advice / cost difference between them both 

hugheskevi

I am 38 and live with my partner only (not married and she is 12 years older). I have had the question put to me 'Added pension for myself only or both me and my dependants'.

The information is very vague and I am uncertain which to go with?

With self-only the Added Pension does exactly what you would expect - pays you a pension for as long as you live, and then ends when you die. With self-and-dependents, if you pre-decease your partner they get 37.5% of the Added Pension you have purchased paid from date of death, and if you have dependents (ie children) they get a pension too, until they become an adult.

Given the large age difference between yourself and your partner, the odds do not favour you pre-deceasing your partner, but there is an insurance element of the decision as well as just pure value and the full pension, income protection and life assurance position of both partners should be taken into account when making the decision.

Thanks I have seen this but looking for advice / cost difference between them both 

There is an alpha Added Pension cost calculator that shows cost for self-only and self-and-dependents Added Pension at this link.

Veeno1_123

Thank you hugheskevi for putting it in a straight forward text

Much appreciated

NedS

Another aspect you may want to check, or perhaps the knowledgeable Mr @hugheskevi knows the answer, is that some DB schemes will only pay out to a married spouse or civil partner upon your death, and payout to a non-married partner is at the discretion of the scheme trustees. I am not sure if CS Alpha falls into this category, but is something you will probably what to check given you are not married. Again, I have also read about some schemes limiting partner payouts where the partner is a lot older than you, which may also apply in your circumstances.

Andy_L

NedS said:

Another aspect you may want to check, or perhaps the knowledgeable Mr @hugheskevi knows the answer, is that some DB schemes will only pay out to a married spouse or civil partner upon your death, and payout to a non-married partner is at the discretion of the scheme trustees. I am not sure if CS Alpha falls into this category, but is something you will probably what to check given you are not married. Again, I have also read about some schemes limiting partner payouts where the partner is a lot older than you, which may also apply in your circumstances.

Technically, AIUI, all dependants pensions are at the trustees discretion in order to avoid tax.

Alpha, unlike the older CS schemes, will pay out to an unmarried partner however you (or rather your partner) may have to jump through some hoops to prove they are a partner rather than just showing a marriage/civil partnership certificate

"Who can get a dependant’s pension?

There are two types of dependant’s pension:

• An adult dependant’s pension - this is for your spouse or civil partner, or a partner. A partner is someone you are living with in a long-term relationship, and with whom you are financially interdependent with."

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