Civil Service Classic pension query

cledwyn958

Checking my wifes annual pension statement and the Classic benefits for 2022 are same as 2021, lump sum and annual pension both the same. The Alpha part has increased same as previous years. Any idea why the Classic part is the same as previous year?

Dazed_and_C0nfused

Static pay?

sammyjammy

Because they haven't updated the pension portal for the McCloud result, it assumes that we left that pension in 2015.  Ridiculous!

hugheskevi

sammyjammy said:

Because they haven't updated the pension portal for the McCloud result, it assumes that we left that pension in 2015.  Ridiculous!

The legal entitlement will not change until schemes commence the roll-back legislation, which they have until 1 October 2023 to do.

Hence the first Annual Benefit Statements (which are what the details in the pension portal are based on) to include the update will be the 31st March 2024 Annual Benefit Statements. Those are sent out by 31 August 2024, after which the Pension Portal should update.

kassy64

cledwyn958 said:

Checking my wifes annual pension statement and the Classic benefits for 2022 are same as 2021, lump sum and annual pension both the same. The Alpha part has increased same as previous years. Any idea why the Classic part is the same as previous year?

They wont necessarily increase as I presume she is no longer in Classic but has been switched to Alpha anytime since 2015. If her best 'years' salary wise were in previous years (and not last year) then mycsp will be using that year to determine her Classic benefits. 
The Classic benefits will only get linked to inflation once the pension is 'in payment' (i.e. she has retired and taken the pension)

cledwyn958

kassy64 said:

cledwyn958 said:

Checking my wifes annual pension statement and the Classic benefits for 2022 are same as 2021, lump sum and annual pension both the same. The Alpha part has increased same as previous years. Any idea why the Classic part is the same as previous year?

They wont necessarily increase as I presume she is no longer in Classic but has been switched to Alpha anytime since 2015. If her best 'years' salary wise were in previous years (and not last year) then mycsp will be using that year to determine her Classic benefits. 
The Classic benefits will only get linked to inflation once the pension is 'in payment' (i.e. she has retired and taken the pension)

She is still in Classic, her online statements go back a number of years and her benefits have increased each year. As Sammyjammy has said it must be to do with the McCloud ruling.

hugheskevi

cledwyn958 said:

She is still in Classic, her online statements go back a number of years and her benefits have increased each year. As Sammyjammy has said it must be to do with the McCloud ruling.

As she moved to alpha some time ago, it is only change in pensionable earnings which will cause a change to classic benefits shown on the statement (assuming she is not purchasing Added Years or Added Pension in classic). McCloud has not yet had any impact at all about what is shown on statements.

When your wife transitioned to alpha she ceased accruing qualifying years in classic. That, combined with a static salary would produce an unchanged classic pension on her Annual Benefit Statements in 2021 and 2022.

westv

My wife is in a similar situation. Minimal rises for several years so minimal increase in the Classic part of her pension.

kassy64

cledwyn958 said:

kassy64 said:

cledwyn958 said:

Checking my wifes annual pension statement and the Classic benefits for 2022 are same as 2021, lump sum and annual pension both the same. The Alpha part has increased same as previous years. Any idea why the Classic part is the same as previous year?

They wont necessarily increase as I presume she is no longer in Classic but has been switched to Alpha anytime since 2015. If her best 'years' salary wise were in previous years (and not last year) then mycsp will be using that year to determine her Classic benefits. 
The Classic benefits will only get linked to inflation once the pension is 'in payment' (i.e. she has retired and taken the pension)

She is still in Classic, her online statements go back a number of years and her benefits have increased each year. As Sammyjammy has said it must be to do with the McCloud ruling.

Are you sure its not a preserved/deferred pension? I just ask as I have recently retired from the Civil service and Classic was phased out from 2015 and everyone was moved on to the career average scheme Alpha by 2017/2018. The McLoud judgemnet will allow us to extend that to 31st March 2022 in due course (probably by late 2023). The CS dept. i worked for definitely stopped Classic in 2015 and had a tapered system for older workers hence why I was allowed to extend to 2017, and the McLoud judgement will allow me to go through to April 2022. If you check the last statement does it state the date she left Classic and does it say anything about Alpha?
Maybe different departments moved at different times.

kassy64

Reading your opening post again you mention that she is now in Alpha so definitely cant be in Classic as well.
I think you mean part of her 'whole' CS pension has an element of Classic, which will be her service from joining to the point of moving to Alpha and she will always have that 'in the bank' so to speak. The Classic element of the pension will be linked to her final salary (probably best of last 3 years) when she leaves the Civil service.

Suzycoll

kassy64 said:

Reading your opening post again you mention that she is now in Alpha so definitely cant be in Classic as well.
I think you mean part of her 'whole' CS pension has an element of Classic, which will be her service from joining to the point of moving to Alpha and she will always have that 'in the bank' so to speak. The Classic element of the pension will be linked to her final salary (probably best of last 3 years) when she leaves the Civil service.

great explanation by Kassy. Classic has been phased out and everyone is in Alpha now, The Classic part of the pension has not been updated as we are waiting for the Mc Cloud judgment to be sorted. It will e adjusted when the figures gave been calculated. There is a good explanation on the civil service website . If you give that a read it may become clearer for your wife ,