Civil Service Pensions

andr12

Question I have partially retired in 2020 and have taken my civil service pension after 30 year’s service. I am still working part time in the civil service. I am due to fully retire next year 2025  Will my state pension be deducted from my civil service pension ? Is this something they did if you retired prior to 2016?

JoeCrystal

No, your state pension will not be deducted from your civil service pension. I am not even sure where you get that impression unless you are referring to the fact that you may see increased taxes deducted from your civil service pension since the state pension is paid gross.

Sarahspangles

andr12 said:

Question I have partially retired in 2020 and have taken my civil service pension after 30 year’s service. I am still working part time in the civil service. I am due to fully retire next year 2025  Will my state pension be deducted from my civil service pension ? Is this something they did if you retired prior to 2016?

It would be better to start your own thread.

There are scenarios where people decide to take stepped pensions, receiving more pension pre State Pension Age (SPA) to smooth their income. I think you would remember if you decided to do that?

I believe there are some subtleties about the way that increases are calculated for some DB pensions pre and post SPA. You’d need to say which scheme you were in.

hugheskevi

andr12 said:

Question I have partially retired in 2020 and have taken my civil service pension after 30 year’s service. I am still working part time in the civil service. I am due to fully retire next year 2025  Will my state pension be deducted from my civil service pension ? Is this something they did if you retired prior to 2016?

Your Civil Service pension and State Pension are separate, there is no deduction.

The State Pension system prior to 2016 consisted of two tiers - the Basic State Pension, and State Second Pension. The Civil Service pension was contracted-out of the State Second Pension, meaning members paid less National Insurance and did not receive State Second Pension. The new State Pension introduced in 2016 does not have contracting-out

Sarahspangles said:

There are scenarios where people decide to take stepped pensions, receiving more pension pre State Pension Age (SPA) to smooth their income. I think you would remember if you decided to do that?

This is not a feature of the Civil Service pension scheme.

Sarahspangles said:

I believe there are some subtleties about the way that increases are calculated for some DB pensions pre and post SPA. You’d need to say which scheme you were in.

Public service pensions provide full indexation of both GMP and non-GMP benefits for those retiring under the new State Pension, so regardless of scheme or section full indexation will apply (assuming retirement under new State Pension and on or after age 55).

MouldyOldDough

hugheskevi said:

andr12 said:

Question I have partially retired in 2020 and have taken my civil service pension after 30 year’s service. I am still working part time in the civil service. I am due to fully retire next year 2025  Will my state pension be deducted from my civil service pension ? Is this something they did if you retired prior to 2016?

Your Civil Service pension and State Pension are separate, there is no deduction.

The State Pension system prior to 2016 consisted of two tiers - the Basic State Pension, and State Second Pension. The Civil Service pension was contracted-out of the State Second Pension, meaning members paid less National Insurance and did not receive State Second Pension. The new State Pension introduced in 2016 does not have contracting-out

But that can easily be corrected by paying for an extra - (in my case) 7 years of NI contributions.....??

I should receive the full amount when I claim my SP in 2030 ??

hugheskevi

MouldyOldDough said:

hugheskevi said:

andr12 said:

Question I have partially retired in 2020 and have taken my civil service pension after 30 year’s service. I am still working part time in the civil service. I am due to fully retire next year 2025  Will my state pension be deducted from my civil service pension ? Is this something they did if you retired prior to 2016?

Your Civil Service pension and State Pension are separate, there is no deduction.

The State Pension system prior to 2016 consisted of two tiers - the Basic State Pension, and State Second Pension. The Civil Service pension was contracted-out of the State Second Pension, meaning members paid less National Insurance and did not receive State Second Pension. The new State Pension introduced in 2016 does not have contracting-out

But that can easily be corrected by paying for an extra - (in my case) 7 years of NI contributions.....??

I should receive the full amount when I claim my SP in 2030 ??

Depends on circumstances and whether there are past years that can be turned into qualifying years through voluntary contributions, and if there are whether they would improve State Pension position if the years available are prior to 2016. So I wouldn't say easily. 

A contracted-out year is still a qualifying year, so you would need other years to pay voluntary contributions toward. In any event, many who were contracted-out at some point prior to 2016 and have had qualifying years in all years since 2016 should now be at or close to a full new State Pension.

Dazed_and_C0nfused

MouldyOldDough said:

hugheskevi said:

andr12 said:

Question I have partially retired in 2020 and have taken my civil service pension after 30 year’s service. I am still working part time in the civil service. I am due to fully retire next year 2025  Will my state pension be deducted from my civil service pension ? Is this something they did if you retired prior to 2016?

Your Civil Service pension and State Pension are separate, there is no deduction.

The State Pension system prior to 2016 consisted of two tiers - the Basic State Pension, and State Second Pension. The Civil Service pension was contracted-out of the State Second Pension, meaning members paid less National Insurance and did not receive State Second Pension. The new State Pension introduced in 2016 does not have contracting-out

But that can easily be corrected by paying for an extra - (in my case) 7 years of NI contributions.....??

I should receive the full amount when I claim my SP in 2030 ??

Plenty of people can do that (or will get extra years from working or getting credits after 2016).

But for some people reaching State Pension age in the first few years after 2016 there was insufficient time for them to make up the difference between their starting amount and the standard new State Pension.

As each year passes there will be less and less people who have that problem.

molerat

Everyone retiring after April 2025 with a full NI history should be able to receive the full new pension. (£221.20 - £169.50 = £51.70 / £6.32 = 8.2 so 9 years maximum post 2016 contributions needed)

MouldyOldDough

molerat said:

Everyone retiring after April 2025 with a full NI history should be able to receive the full new pension. (£221.20 - £169.50 = £51.70 / £6.32 = 8.2 so 9 years maximum post 2016 contributions needed)

But what is the definition of "a full NI history" ?

ie) How many years in TOTAL ?

Dazed_and_C0nfused

MouldyOldDough said:

molerat said:

Everyone retiring after April 2025 with a full NI history should be able to receive the full new pension. (£221.20 - £169.50 = £51.70 / £6.32 = 8.2 so 9 years maximum post 2016 contributions needed)

But what is the definition of "a full NI history" ?

ie) How many years in TOTAL ?

It would take anywhere from 28 to over 50 based on previous posters on here.