Civil Service Final Salary Question

drummersdale

Hi 

I took partial retirement on 5th August so My CSP will have calculated my lump sum and monthly pension based on my latest available salary (of reference) - in my organisation our pay rise (2% I think) is applied on 1st August but when I took partial it still hadn’t been agreed - it has now so will be backdated and paid in January 23. 

The question I have is will it make any difference to what I received when I went partial both by way of lump sum and monthly amount?  

So if my salary was £53k on 1st August 2021 but then becomes £54k (uplifted by 2%) WEF 1st August 2022 would that be taken into account retrospectively by My CSP or does it need to have been paid for a certain length of time for it to be relevant? I know it wouldn’t be a fortune but even a couple of hundred pounds might pay for a few hours central heating lol 😆 

I will send an email to My CSP but wondered if anyone had a view.

Thanks 

GunJack

They should recalculate when they get the salary from the employer...I suspect you will need to chase up both parties to get it sorted...

drummersdale

Cheers for that - I think it’s par for the course when it comes to My CSP…

Dazed_and_C0nfused

drummersdale said:

Hi 

I took partial retirement on 5th August so My CSP will have calculated my lump sum and monthly pension based on my latest available salary (of reference) - in my organisation our pay rise (2% I think) is applied on 1st August but when I took partial it still hadn’t been agreed - it has now so will be backdated and paid in January 23. 

The question I have is will it make any difference to what I received when I went partial both by way of lump sum and monthly amount?  

So if my salary was £53k on 1st August 2021 but then becomes £54k (uplifted by 2%) WEF 1st August 2022 would that be taken into account retrospectively by My CSP or does it need to have been paid for a certain length of time for it to be relevant? I know it wouldn’t be a fortune but even a couple of hundred pounds might pay for a few hours central heating lol 😆 

I will send an email to My CSP but wondered if anyone had a view.

Thanks 

I think that might be a bit optimistic for 5 days of increased salary?

Could it be,

£53,000 x 360/365 = £52,273.97
£54,000 x 5/365 = £739.73

= final salary £53,013.70?

drummersdale

Thanks @Dazed_and_C0nfused that’s why I was asking the question - and I think you’re absolutely spot on - I’ll use anything I get to buy myself a nice coffee lol 😂 

GunJack

it depends on WHEN the rise is due from, and if it's true final salary or CARE... if CARE and due 1 Aug, I can see D&C being right, but if it was due from 1 April it'll change more, and if it's true FS then you should expect tye full inbackdated increase in pension.

drummersdale

Thanks @GunJack mine was/is a Classic CS pension final salary scheme so my "salary" WEF 1st August 2022 will be c£54k (as pay rises in my organisation are effective from 1st August) - that being my 2021/22 salary of £53k plus the 2% pay rise being imposed. 

However the higher amount will only have been in place for 5 days (as I partially retired on 5th August) so not sure if Final Salary in this instance would be that in the last 12 months prior to retirement - which would be the £53k as opposed to the £54k applicable from 01/08/22. 

It's a moot point and will no doubt pan out over coming months - I'm not complaining as the pension itself will rise by around 6% next April (the CPI increase pro rata).

GunJack

If it's CS Classic, then it's based on your best year of last 3 IIRC, so probably won't make much difference then  

drummersdale

Ahh well, you win some, you lose some 😀

OldBeanz

GunJack said:

If it's CS Classic, then it's based on your best year of last 3 IIRC, so probably won't make much difference then  

I retired in 2016 (should have been 2015) and mine was based on my 2007 salary so certainly was more than 3 years and shows that unions now quoting below inflation pay rises for public servants dating back to 2010 should actually go further back into the Brown years.