Part-time to Partial Retirement in Civil Service

GillWa

Hi

I am currently 54 and work part -time. I am in the Civil Service with majority of service in Classic (retirement age 60) before the compulsory move to Alpha (retirement age 67)

I naively thought I could slip from part-time to partial retirement at some point and get pension payments for the non-working time so long as I didn’t exceed the full-time equivalent pay scale.

I now think that the rules say I need to take a 20% reduction on my current part-time salary and the total of pay and pension shouldn’t be more than my current part-time salary, if I partially retire.

Assuming my thinking is correct, would it be a good idea to increase hours by 20% leading up to 60, so that I can reduce hours to my current pattern again and partially retire from 60 to 67?

Regards

drummersdale

Hi @GillWa that sounds right to me - you definitely have to reduce your “current” salary by 20% and yes to avoid abatement the pay and pension can’t be more than your salary - so it would also seem right to consider increasing them now to reduce them in future - if your organisation will let you increase them.

JIL

As you are on a final salary scheme, would it not be a good idea to do full time for a year, and then partially retire?

Dazed_and_C0nfused

Assuming my thinking is correct, would it be a good idea to increase hours by 20% leading up to 60, so that I can reduce hours to my current pattern again and partially retire from 60 to 67?

That wouldn't actually achieve your aim.

Say you do 25hrs now.

If you increase your hours by 20% that would be a 30hr week (25 +20%).

But if you then had to drop 20% you would only be working 24hrs (30- 20%).

sammyjammy

JIL said:

As you are on a final salary scheme, would it not be a good idea to do full time for a year, and then partially retire?

A final salary is worked out on the full time salary of the person no matter the hours they work.  Its the accrual of the years that changes, if someone works 0.5 they accrue 0.5 of a year.

GillWa

Dazed_and_C0nfused said:

Assuming my thinking is correct, would it be a good idea to increase hours by 20% leading up to 60, so that I can reduce hours to my current pattern again and partially retire from 60 to 67?

That wouldn't actually achieve your aim.

Say you do 25hrs now.

If you increase your hours by 20% that would be a 30hr week (25 +20%).

But if you then had to drop 20% you would only be working 24hrs (30- 20%).

Thanks I will remember to do my sums both ways before I make a decision