Civil Service pension - help!

ALIMHOLT

I'm a working Civil Servant and have been in the Civil Service for 32 years. I'm aged 55 and would like to consider partial retirement. I'm divorced and have no children. I believe I will receive a refund of some of my Widows Pension Scheme (WPS) when I retire fully. My question is, how will the refund affect me financially when I do fully retire?
I've contacted My Civil Service Pension (MyCSP) advisors, GOV.CO.UK, HMRC and the company who manage the Civil Service Pensions, but to no avail! 
Any help/advice will be very much appreciated.
Many thanks.

Dazed_and_C0nfused

How do you think it could potentially affect you other than having more money?

ALIMHOLT

I've heard (unsure how accurate this information is) that if I take partial retirement, the WPS refund payment is treated as a second payment and can wipe out my pension lump sum that I'll continue to accrue.

Suzycoll

Hi. I'm not sure but the information you have 'heard' seems to be incorrect. I part retired and took my civil service pension (Classic) and a lump sum. Nothing was taken away from the lump sum.

As you said the WPS refund will not be put in payment until you fully retire. Then the CS pension will refund some of the WPS you paid and your CS pension will increase ( they will keep some back should you marry again ).

I have taken the following from the civil service pension website..........

 If you are unmarried throughout your service you are entitled to a refund of WPS contributions when your pension comes into payment. If you partially retire and claim your pension then the refund of WPS contributions will not be paid until you take full retirement.

hope this helps

ALIMHOLT

Thanks Suzycoll. I hope you don't mind me asking, are you fully retired yet? I'd like to know how the WPS refund when I fully retire affects the pension lump sum I continue to accrue.

Suzycoll

ALIMHOLT said:

Thanks Suzycoll. I hope you don't mind me asking, are you fully retired yet? I'd like to know how the WPS refund when I fully retire affects the pension lump sum I continue to accrue.

hi
No i am not fully retired yet.

As far as I can work out the WPS part of it (minus some they keep back in case you re marry !) will be added to your 'pot' then when you come to fully retire your 'pot' will be put into payment as a monthly payment. Obviously the larger the lump sum you take the smaller your monthly payment.

That's my take on it. Although there doesn't seem to be a lot of info on it - bit sketchy. Cant say im 100% right on this though - sorry 

pinnks

Alimholt, are you a member of Classic?  If not, then the issue is not relevant as I understand it.  The website says,

"The refund of WPS contributions for those unmarried on their last day of service only applies to members of the classic scheme.  The same provision does not apply in any of the other schemes."

Subject to that, I cannot really see how a refund of contributions can affect entitlement to you main pension, via the lump sum but have you read the scheme rules? Scheme rules - Civil Service Pension Scheme

I have also had a little wander through the website and the only other thing I can find about refund of WPS contributions and your lump sum relates to commutation of your pension for additional lump sum.  As I read it, if you take a refund of your WPS contributions, it effectively counts as part of the maximum additional lump sum you can buy:

"If you are single and eligible for a partial or full refund of WPS contributions on full retirement, you will have less scope to give up pension for an additional lump sum. This is because the total of any WPS refund plus any additional lump sum you choose to take cannot exceed the maximum permitted lump sum."

Mr_Countdown

Hi all. My situation is I worked for the Civil Service for 35 years and left about 22 months. 

I was married for 30 of those years and then divorced the last 5 years. 

No idea about WPS but assume I will have paid into it during the 35 years. 

I was also in the Classic scheme until 2015 when I had to move over to Alpha. 

I’m 55 now but don’t plan to take my civil service pension for about 2-3 years. 

Does anyone know if I will get a partial WPS refund or how it works in my situation?
Many thanks. 

Suzycoll

Mr_Countdown said:

Hi all. My situation is I worked for the Civil Service for 35 years and left about 22 months. 

I was married for 30 of those years and then divorced the last 5 years. 

No idea about WPS but assume I will have paid into it during the 35 years. 

I was also in the Classic scheme until 2015 when I had to move over to Alpha. 

I’m 55 now but don’t plan to take my civil service pension for about 2-3 years. 

Does anyone know if I will get a partial WPS refund or how it works in my situation?
Many thanks. 

This may help ?

Getting your pension - Civil Service Pension Scheme

ALIMHOLT

Pinnks, thanks for the information. I have Classic and Alpha pensions. I'll have a read of the link posted.....I've read that much so far I'm struggling to keep track. It's a minefield and, as Suzycoll states, a bit sketchy! I'm obviouly thinking ahead financially and would prefer the WPS refund payment, which is treated as a second payment,  not to wipe out my pension lump sum that I'll continue to accrue. Apart from getting married again, I wonder if there's a way round it? I'll have to look into what the maximum permitted lump sum is but if anyone knows, please post on here.
Many thanks.

pinnks

Doesn't this explain your additional lump sum options and therefore the maximum? Choices on retirement - Civil Service Pension Scheme