Partial retirement and impact on Alpha Pension

indiasign

Hi everyone, hopefully a quick question.

I’m a 59 yr old Civil Servant, currently in the Alpha scheme. I’m  thinking of taking partial retirement when I hit 60, dropping down to 4 days a week, as I have an element of Premium pension that I can take that will pretty much offset the drop in wages.

But I’m not sure what impact going part time will have on my Alpha pension - is there any way to calculate that?

I emailed MyCSP a few weeks ago, but have heard nothing back

westv

Presumably the only impact will be a lower amount accumulated due to less days being worked?

Billy-no-Money

Alpha simply adds 2.32% of your gross pensionable pay to your pension each year, so if you earn £25000 full time that would add £580. Dropping to 4 days takes gross pay to £20,000, meaning £464 would be added.

If you look at your latest annual benefit statement you’ll see that calculation for the year just ended.

edit: are you actually taking partial retirement (I.e. taking some or all of your pension accrued to date) or simply going part time because the difference is made up by Premium? 

indiasign

Thanks for the replies, and particularly the calculation, that helps a lot. 

And yes, it’s partial retirement, as that’s a requirement of taking the Premium element - I have to drop my hours by at least 20%

r6mile

Is your Premium pension more or less than 20% of your FTE salary? As if it’s more then presumably you will be affected by abatement?

indiasign

r6mile said:

Is your Premium pension more or less than 20% of your FTE salary? As if it’s more then presumably you will be affected by abatement?

It’s a little less than 20%, so no abatement issues