Classic/Alpha Pensions & Early Retirement.

Bluebird09

Hi all,

I'm currently in CS Alpha pension (was in Classic until 2015).
I'm 53 years old and I'm currently working PT, wanting to retire at age 60 if possible.
Classic being a DB pension and Alpha career average, I was thinking of increasing my hours in my final year or two to get the benefits of the DB pension, and as apparently Alpha will maintain final salary link (I'm not sure what this means). 

My question is, is it really that simple to improve your pension in your final years of employment? 

Dazed_and_C0nfused

Your Classic pension is already based on your full time equivalent salary.

Increasing your hours, at the same grade, will only impact the Alpha pension you accrue in the current year onwards.

Getting a promotion, which ideally lasts 12 months or more, is the way to increase your Classic pension.

And there's the McCloud remedy period you would need to decide upon.  Alpha gives you far more pension than Classic (nearly double) but there is no automatic (tax free) lump sum and it's only payable from 67 unless you take an actuarial reduction (which might still be with more more than Classic).

Bluebird09

Thanks Dazed. Just trying to get my head around what it all means. 

So increasing my hours wont impact my Classic at all? I thought it would be based on the salary earned in my final 3 years? Sorry if this seems like a silly question.

Dazed_and_C0nfused

Bluebird09 said:

Thanks Dazed. Just trying to get my head around what it all means. 

So increasing my hours wont impact my Classic at all? I thought it would be based on the salary earned in my final 3 years? Sorry if this seems like a silly question.

It is based on your full time equivalent salary.

So if you work say 25 hours and a full timer works 37.5 hours your pension will be based on the salary for 37.5 hours i.e. full time.

But in a year you were accruing pension in the Classic scheme you would have only accrued 0.666 of a full year.

Bluebird09

This makes sense now, thanks so much Dazed.