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Partial retirement and impact on Alpha Pension

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

Comments

  • westv
    westv Posts: 6,320 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Presumably the only impact will be a lower amount accumulated due to less days being worked?
  • Billy-no-Money
    Billy-no-Money Posts: 332 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 9 August 2023 at 5:09PM
    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? 
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  • indiasign
    indiasign Posts: 57 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    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
    r6mile Posts: 258 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    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
    indiasign Posts: 57 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    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
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