Civil Service pension - Classic & Alpha

Tufty199

I started in the Civil service in 1985 and have a Classic pension which is payable from age 60. I also have an Alpha pension which I need to contribute into until I am 67 in order to receive my maximum benefits. Each pension will pay-out about 50:50 of my total pension by the time I am 67. 
However from what I can see the only way to receive my Classic pension benefits at 60 (£10 000 p.a.) is by taking partial retirement. However by reducing my hours/earnings, surely that means I am being forced to make lower contributions into my Alpha pension, for the remaining 7 years.

Is that right or am I missing something? 

Dazed_and_C0nfused

Correct.  For the basic Alpha scheme.

But you could buy additional pension if it was a particular issue.

https://www.civilservicepensionscheme.org.uk/your-pension/managing-your-pension/increase-your-pension/added-pension

Tufty199

Thanks for your reply.
But that would mean the CS have forced employees onto a new pension scheme but then prevented them from being able to make full contributions into the new scheme, simply because they are claiming a pension to which they are entitled. I can't believe that is allowed as it is wrong. If I was allowed to defer my Classic pension and see it increase that would be fine but that doesn't seem to be an option. 

westv

It might be just as easy to take both Classic and Alpha at 60.
I did some very rough calculations for my wife a while ago and there was very little difference between doing that and the Classic pension she would have received at 60 if Alpha had never started.

Tufty199

Thanks for taking the time to reply. 
Without receiving the state pension, I couldn't afford to retire at 60, as my daughter is planning to be at university still. 

Golactico

OP - Your circumstances are very similar to mine (started in Civil Service a year later than you). For what it's worth, I intend leaving the Civil Service and taking my Classic at Age 60. The Classic pension and lump sum will mean that I can work part-time elsewhere until the Alpha portion of my pension and state pension become payable at 67. Partial retirement in the Civil Service sounds like a very complicated business that I very quickly decided it wouldn't be for me when I looked at that option.

There's nothing to say you have to contribute to Alpha until you're 67. you've probably accrued a tidy sum in Alpha to this point that will be inflation protected for you to draw at 67 regardless of when you leave the CS (along with a £10K+ state pension that probably, like me, you've already paid enough NI conts to get in full).

indiasign

OP, since you seem to intend to carry on working to 67, you can defer taking your Classic Pension, up to the age of 75.

The pension won’t “increase” as such, to reflect the deferment, but it will be uprated in line with usual cost of living increases.

https://www.civilservicepensionscheme.org.uk/media/k4xjysld/classic-plus-retirement-benefits-february-2018.pdf

sammyjammy

indiasign said:

OP, since you seem to intend to carry on working to 67, you can defer taking your Classic Pension, up to the age of 75.

The pension won’t “increase” as such, to reflect the deferment, but it will be uprated in line with usual cost of living increases.

https://www.civilservicepensionscheme.org.uk/media/k4xjysld/classic-plus-retirement-benefits-february-2018.pdf

That would be madness, OP would be giving up 7 years of pension so that they can still pay in full time contributions to Alpha.

OP are you sure the £10k for your Classic pension is correct?  For 37 years it seems low unless you took a carer break/worked mostly part-time.

I agree with OP that it seems unfair that you are forced to go part-time at 60 when its two different pensions, I think they should have varied the rules for this scenario for anyone taking some Classic pension.

westv

I don't doubt £10k is correct. My wife's Classic will be £9,700 and she has worked full time since she started there mid 80s.

indiasign

“ That would be madness, OP would be giving up 7 years of pension so that they can still pay in full time contributions to Alpha.”

But Civil Service Abatement rules mean that the OP has to drop their wages by the amount of pension they are taking, because their combined wages + pension can’t be higher than their current wages.

So, ultimately they would be no better off by taking their Classic pension and, as they have identified, would be making lower contributions to their Alpha pension

sammyjammy

westv said:

I don't doubt £10k is correct. My wife's Classic will be £9,700 and she has worked full time since she started there mid 80s.

Are you taking the additional time for the McCloud judgement into consideration?