Leaving Alpha\Classic Pension to gain combined annual CPI increases in 2022/23

m_c_s

The annual pension benefit statement quotes Civil Service pension scheme benefits built up to 31st March each year. Spouse has 26 years of Classic and £9500 built up in Alpha so trying to figure out how best to achieve optimal uplifts before retirement in June 2023. The thought is to move to Partnership in Feb or March 2023 to maximise CPI uplift in the current combined schemes since this is a high inflation year.
The documentation for the Alpha and Classic schemes is not very clear but would leaving the Alpha scheme, and therefore by default the Classic pension scheme, on the 31st March 2023 allow both to be uplifted by September 2022s CPI figure fully?
It seems a minimum of 2 months notice its required and sometimes 3 months maybe needed to leave Alpha and Classic schemes so perhaps it would be best to leave on 31st Feb 2023 to be safe? This would mean applying in December 2022.
I assume if delayed until 31st April 2023 then only Alpha will get the CPI uplift for the previous year?

hugheskevi

Spouse has 26 years of Classic and £9500 built up in Alpha so trying to figure out how best to achieve optimal uplifts before retirement in June 2023. The thought is to move to Partnership in Feb or March 2023 to maximise CPI uplift in the current combined schemes since this is a high inflation year.

The documentation for the Alpha and Classic schemes is not very clear but would leaving the Alpha scheme, and therefore by default the Classic pension scheme, on the 31st March 2023 allow both to be uplifted by September 2022s CPI figure fully?
It seems a minimum of 2 months notice its required and sometimes 3 months maybe needed to leave Alpha and Classic schemes so perhaps it would be best to leave on 31st Feb 2023 to be safe? This would mean applying in December 2022.
I assume if delayed until 31st April 2023 then only Alpha will get the CPI uplift for the previous year?

The date of leaving the scheme is when the classic pension entitlement would be calculated, and a deferred pension award created. From that date of the award, revaluation would apply. However, this means that if you retire mid-way through the scheme year you would not get the full revaluation for the year.

The revaluation tables published each year set out revaluation based on month of deferment. For example, in April 2022 the Pension Increase was 3.1%. If you became deferred between 27 April 2021 and 26 May 2021 the increase would be 2.84%. If you became deferred between 27 February 2022 and 26 March 2022 the increase would be 0.26%.

Alpha is different, as it gets CPI revaluation whether you are in-service or deferred, so the date of leaving the scheme doesn't matter.

m_c_s

Thankyou for the reply.
I now understand a little more.
Alpha is all about achieving maximum time in to accrue the full year so that would be leaving end of March 2023.
Leaving Classic should be done earliest to gain the fullest year inflation increase.
So two apposing forces!

MoosMum

Apologies for hijacking, do these tables also apply to those who are retired ? If I retired 31 May 2023 would this mean that you would get about 10/12  of CPI Sept 23 on your pension in April 24?.Trying to work out the best time to go, but our part of Civil Service has pay deal which ends May 23. Many thanks.

hugheskevi

MoosMum said:

Apologies for hijacking, do these tables also apply to those who are retired ? If I retired 31 May 2023 would this mean that you would get about 10/12  of CPI Sept 23 on your pension in April 24?.Trying to work out the best time to go, but our part of Civil Service has pay deal which ends May 23. Many thanks.

Assuming you are retiring with classic, classic plus or premium benefits then yes.

MoosMum

hugheskevi said:

MoosMum said:

Apologies for hijacking, do these tables also apply to those who are retired ? If I retired 31 May 2023 would this mean that you would get about 10/12  of CPI Sept 23 on your pension in April 24?.Trying to work out the best time to go, but our part of Civil Service has pay deal which ends May 23. Many thanks.

Assuming you are retiring with classic, classic plus or premium benefits then yes.

Many thanks but just to clarify is it different for Alpha as I will have some Alpha in my final pension ?

hugheskevi

MoosMum said:

Many thanks but just to clarify is it different for Alpha as I will have some Alpha in my final pension ?

Alpha is different, as it gets CPI revaluation whether you are in-service or deferred, so the date of leaving the alpha scheme doesn't matter. The legacy classic, classic plus or premium benefits are still calculated and receive part-year revaluation/indexation even after a member has moved to alpha.