Consolidating into Civil Service Pension

Andersoncouncil

I’m due to start a role with the Civil Service soon and am looking for advice on whether it would be prudent to consolidate all of my current DC pensions into theirs or keep them where they are.

I have 5, currently worth around £80k and my hope is that I can work there for 12 years which will take me to 62.

First post on here, so apologies if I’m asking anything too obvious.  

Brie

It will depend on what those pensions are. 

Defined benefit - I'd suggest you leave it where it is even assuming you might be allowed to move it.  Defined contribution - may be a good idea to consolidate just to make life easy, assuming the DC doesn't have any nice perks like a retirement age of 60 or something.  

Brie

oh - and keeping them separate gives you more flexibility.  you can take some earlier than others etc.

hugheskevi

Brie said:

It will depend on what those pensions are. 

Defined benefit - I'd suggest you leave it where it is even assuming you might be allowed to move it.  Defined contribution - may be a good idea to consolidate just to make life easy, assuming the DC doesn't have any nice perks like a retirement age of 60 or something.  

Why would you not move a DB scheme? Often the transfer out factor from a private DB scheme is double the transfer in factor, so by moving it you can significantly increase the annual pension, make it secured by the Exchequer and it doesn't even produce a pension input as it is a transfer rather than a contribution.

I would suggest immediately applying for transfer quotes for all the arrangements, as this does not commit you to anything and the transfer process takes a very long time usually.

Once you know the offer available you will be in a better position to consider transfer.

Marcon

Brie said:

It will depend on what those pensions are. 

Defined benefit - I'd suggest you leave it where it is even assuming you might be allowed to move it.  

Unlikely to 'depend on what those pensions are'.

Won't be any issue in terms of 'being allowed' to move it, assuming OP is joining a civil service DB scheme - but as OP has already said they have DC schemes, the issue doesn't arise unless OP is mistaken in what they've already got! If they do have DB benefits elsewhere, on what basis are you 'suggesting' they leave it where it is? At least investigating what the transfer value would buy makes sense, rather than just taking advice from a stranger on the internet who possibly isn't familiar with public sector transfer in factors.

Brie said:

IDefined contribution - may be a good idea to consolidate just to make life easy, assuming the DC doesn't have any nice perks like a retirement age of 60 or something.  

A retirement age of 60 in a DC scheme isn't a 'nice perk', since the fund built up will (normally) be smaller at age 60 than at a later date. Even with the forthcoming rise in minimum pension age, OP could still take a DC pension at any time from age 57. A Guaranteed Annuity Rate, assuming OP wants to take an annuity, would be a rather nicer proposition!

MX5huggy

Get your transfer value offers from the CSPS. Then decide, no point speculating without the info but you might well be pleased with the offer. DB plus DC is a good combination but you can rebuild up your DC after.  

Andersoncouncil

Thanks everyone, wee bit to chew on there.

I’m quite sure that the Civil Service Pension is now DC, which is why I thought adding my current, DC’s would be good for me. All of mine are currently in a deferred state.

Couple of other things about myself, I was born before April 73 and I also have two DB’s. At the moment I intend to leave these where they are for now. Both are showing over the £30000 mark to transfer out and I’d rather look at my options with them the closer I come to 55. 

ewaste

The Civil Service offer a DC Scheme called 'Partnership' however they also offer 'Alpha' which is a CARE DB scheme.

https://www.civilservicepensionscheme.org.uk/joining-the-pension-scheme/alpha-or-partnership/

You can of course choose whichever you prefer, although you just have to look through this board to realise how valuable Alpha is. 

As suggested by others I'd get transfer quotes for the whole lot to then consider your options. Normally you have to transfer in within a year of beginning employment with the Civil Service so there is a hard deadline. Even if you decide not to transfer a penny it's worth making a properly informed decision.

Remember to also compare the detail for your existing DB schemes e.g. revaluation in deferment and payment. Although they likely have a lower retirement age so it's all a balancing act as part of a wider retirement strategy.

Dazed_and_C0nfused

Andersoncouncil said:

Thanks everyone, wee bit to chew on there.

I’m quite sure that the Civil Service Pension is now DC, which is why I thought adding my current, DC’s would be good for me. All of mine are currently in a deferred state.

Couple of other things about myself, I was born before April 73 and I also have two DB’s. At the moment I intend to leave these where they are for now. Both are showing over the £30000 mark to transfer out and I’d rather look at my options with them the closer I come to 55. 

Why have you opted for that and not the Alpha DB scheme 😳

ewaste

Dazed_and_C0nfused said:
Why have you opted for that and not the Alpha DB scheme 😳

They may wish to help the struggling taxpayer 🤷‍♂️ I'd certainly thank them because the actual cost to the taxpayer for benefits accrued by an older member must be eyewatering compared to contributions. 

Andersoncouncil

Dazed_and_C0nfused said:

Andersoncouncil 

I’m quite sure that the Civil Service Pension is now DC, 

Why have you opted for that and not the Alpha DB scheme 😳

I haven’t yet, my employment is due to start with them in the next couple of months. Really just starting to line things up before then. This all helps, enormously. Thanks