New to the civil service and Alpha - how do I...?

michaels

AM am joining the CS, first day will be in about a months time.

I want to do the following, ideally from my first pay cheque:

• Increase pension payments above the standard 5.xx%
• Adjust my pension benefits so that my spouse, if I pre-decease, gets the same pension as I get
• Transfer in some of my DC pension pot into Alpha

Does anyone know what physical steps I need to take to action these aims, who I should contact, what forms I should fill in etc?

Thanks

sammyjammy

Increase your pension - Civil Service Pension Scheme

start here and come back if you have unanswered questions

hugheskevi

michaels said:

AM am joining the CS, first day will be in about a months time.

I want to do the following, ideally from my first pay cheque:

• Increase pension payments above the standard 5.xx%
• Adjust my pension benefits so that my spouse, if I pre-decease, gets the same pension as I get
• Transfer in some of my DC pension pot into Alpha

Does anyone know what physical steps I need to take to action these aims, who I should contact, what forms I should fill in etc?

Thanks

To increase pension payments you need to decide if you want to buy EPA, Added Pension, or make DC AVCs, There is an EPA calculator at this link and an Added Pension calculator at this link to assist with this. Once you have decided, complete and return forms to MyCSP.

You can only adjust spouse benefits at retirement, using what is called 'allocation.'

To transfer in DC pension, there is a form on the linked page above to complete and return.

Note that MyCSP will only receive an interface from your employer about 2 weeks after your first salary payment. Before then, they will not have a record for you.

michaels

Thanks both, I have emailed mycsp with my questions but no response but it sounds like I probably need to wait until I am 'on the system' before I can action anything (although it seems the monthly added pension can be backdated).  Is their some sort of ID number that I will get at this point that I will need for the forms for added and transfer in?

Are there any links regarding the 'allocation' to spouse and how much this might cost?  What happens if I were to die before the pension becomes payable?

Thanks

sammyjammy

If and thats a big if, they reply you'll just get directed towards the website, the answers to your questions are all on there.

hugheskevi

michaels said:

Is their some sort of ID number that I will get at this point that I will need for the forms for added and transfer in?

You will be given a member number. MyCSP uses either member number or National Insurance number as member identifier.

Are there any links regarding the 'allocation' to spouse and how much this might cost?  What happens if I were to die before the pension becomes payable?

The factors are at this link which set out the cost.

If you die before pension is payable standard death and survivor benefit rules apply, as set out in the alpha scheme guide.

michaels

hugheskevi said:

michaels said:

Is their some sort of ID number that I will get at this point that I will need for the forms for added and transfer in?

You will be given a member number. MyCSP uses either member number or National Insurance number as member identifier.

Are there any links regarding the 'allocation' to spouse and how much this might cost?  What happens if I were to die before the pension becomes payable?

The factors are at this link which set out the cost.

If you die before pension is payable standard death and survivor benefit rules apply, as set out in the alpha scheme guide.

Thanks - I had seen the allocation tables before that start at age 50 so had assumed that the allocation could be made before retirement but I guess the tables cover employments with an earlier retirement date than the SPA?

This leaves me with a hole in provision for my DW if I were to die before retirement age as she would only get 37.5% of my pension whereas I would plan to give her a 100% allocation when I reach retirement age. For a lot of this period we will be living off our DC pot so I would not even be 'death in service', only I assume with a 'preserved pension'?

Presumably I would need life insurance then to fill this gap which is annoying/potentially very costly

hugheskevi

I had seen the allocation tables before that start at age 50 so had assumed that the allocation could be made before retirement but I guess the tables cover employments with an earlier retirement date than the SPA?

Yes - pre-2006 joiners have a protected pension age of 50.

This leaves me with a hole in provision for my DW if I were to die before retirement age as she would only get 37.5% of my pension whereas I would plan to give her a 100% allocation when I reach retirement age. For a lot of this period we will be living off our DC pot so I would not even be 'death in service', only I assume with a 'preserved pension'?

Remember to take into account the death in service lump sum (2 x salary) and enhanced survivor benefits whilst working, as well as tax-free DC pension for the spouse. With a preserved pension you would get a death lump sum of 5 x annual pension but no survivor benefit enhancement.

There are also limits on the amount of pension that can be allocated to consider. 

How is the enhancement worked out?

This is worked out using your total earned alpha pension.

Your earned alpha pension is the pension that comes from your pensionable earnings each year, not from a transferred in pension or any added pension you have bought.

This pension amount is multiplied by 10, or the number of years that were left until you would have reached NPA if this is lower (or if you are on a fixed term contract, the end of that contract if earlier). This is then divided by the number of years you were an active member of alpha.

The result is the enhancement that will be added to your alpha pension before working out your dependants’ benefits.

michaels

hugheskevi said:

I had seen the allocation tables before that start at age 50 so had assumed that the allocation could be made before retirement but I guess the tables cover employments with an earlier retirement date than the SPA?

Yes - pre-2006 joiners have a protected pension age of 50.

This leaves me with a hole in provision for my DW if I were to die before retirement age as she would only get 37.5% of my pension whereas I would plan to give her a 100% allocation when I reach retirement age. For a lot of this period we will be living off our DC pot so I would not even be 'death in service', only I assume with a 'preserved pension'?

Remember to take into account the death in service lump sum (2 x salary) and enhanced survivor benefits whilst working, as well as tax-free DC pension for the spouse. With a preserved pension you would get a death lump sum of 5 x annual pension but no survivor benefit enhancement.

There are also limits on the amount of pension that can be allocated to consider. 

How is the enhancement worked out?

This is worked out using your total earned alpha pension.

Your earned alpha pension is the pension that comes from your pensionable earnings each year, not from a transferred in pension or any added pension you have bought.

This pension amount is multiplied by 10, or the number of years that were left until you would have reached NPA if this is lower (or if you are on a fixed term contract, the end of that contract if earlier). This is then divided by the number of years you were an active member of alpha.

The result is the enhancement that will be added to your alpha pension before working out your dependants’ benefits.

I think the final paragraph you quote applies to the enhanced survivor benefit rater than the max allocation which is covered in Regulation 87?
The Public Service (Civil Servants and Others) Pensions Regulations 2014 (legislation.gov.uk)

hugheskevi

michaels said:

I think the final paragraph you quote applies to the enhanced survivor benefit rater than the max allocation which is covered in Regulation 87?

The Public Service (Civil Servants and Others) Pensions Regulations 2014 (legislation.gov.uk)

Yes, that's right.   

MakingUpGround

Presumably I would need life insurance then to fill this gap which is annoying/potentially very costly

I have life insurance exactly to fill this gap and add to pension pot for husband. I currently have life insurance and family income benefit, but I'm about to change the family income benefit to an increasing life insurance. You can also get decreasing cover which might be for you, more cover now decreasing as partner would need less if you paid into the pension pot for more future years. It might not be that expensive, I think my policies are reasonable for the security they provide