Civil Service pension - help!

Jester60

Hello, this thread is helpful to my situation and have an additional and rather urgent question. This my first posting on MSE Forum.

I am a deferred member of the classic scheme and about to claim my pension at age 60.  I am never married/no kids. I will marry soon (after practicing for 20 years). Does it make much difference if I do it before or after I claim my pension.  Is my understanding of the following scenarios correct?

a. If I marry before being eligible for the pension - I do not get the WPS refund and have possibilities to pass some of my pension to the new low income wife (which would be a tax advantage for me). I can also max my lump sum at a reduced pension. My wife would get 50% of my pension if I die.

b If I marry after - I get the WPS refund which contributes to the total allowed lump sum payment. I cannot allocate some of my pension to the wife. MOST importantly, if I die,  the new wife still gets the 50% of my pension amount.

c, Also, it is the age of 60 which is decisive, not the date from which the pension is paid e.g. if I could defer payment a few months. 

Any help/experiences would be appreciated as this is now very urgent. Based on previous emails to the CSPS I might not expect a response for weeks. I am trying to phone but that is not easy to get through.

Thank you

Dazed_and_C0nfused

I can also max my lump sum at a reduced pension.

Unless you have a desperate need for additional lump sum that is generally considered a poor choice for civil service pensions.

You are only getting a one off payment of £12 in return for each £1 of pension you give up.  And that £1 would rise with the civil service inflation increase added each year so with your pension being paid for upto 40 years it's a very costly £12.

Silvertabby

Dazed_and_C0nfused said:

I can also max my lump sum at a reduced pension.

Unless you have a desperate need for additional lump sum that is generally considered a poor choice for civil service pensions.

You are only getting a one off payment of £12 in return for each £1 of pension you give up.  And that £1 would rise with the civil service inflation increase added each year so with your pension being paid for upto 40 years it's a very costly £12.

Ditto the LGPS and other public sector pensions.  Yet, In the LGPS,  well over 90% of retirees go for the maximum commutation option, and I believe the other PS pension schemes have similar stats.

I suppose one way of looking at it is that helps keep the overall costs of the schemes down!  

Jester60

Thank you for help. Agree, I guess it's down to individual circumstances.  I am thinking not to max the lump sum but I have other income/healthy cash savings but  there will be a small income tax benefit  for a few years if I lower my pension slightly.

Would anyone be able to confirm that my future wife will get the 50% of my pension if I marry after claiming the pension at 60?

WIltsboy

I have been having ongoing discussions with MyCSP trying to work out entitlement and whether or not I have a discrimination case around WPS contributions refunds.

Essentially widowed and no dependent children (too old) so effectively the same living status as someone who has been single since day 1.

RSS statement suggests I can only get refund from when partner passed until end of Classic which means almost 32 years of contibutions ignored purely becuase I was married during my service.

My view with no dependents I should be treated as per single person and receive full career refund (less deductions as in rest of this forum) but fear the rules dont seem to consider no dependents existing !

Dazed_and_C0nfused

WIltsboy said:

I have been having ongoing discussions with MyCSP trying to work out entitlement and whether or not I have a discrimination case around WPS contributions refunds.

Essentially widowed and no dependent children (too old) so effectively the same living status as someone who has been single since day 1.

RSS statement suggests I can only get refund from when partner passed until end of Classic which means almost 32 years of contibutions ignored purely becuase I was married during my service.

My view with no dependents I should be treated as per single person and receive full career refund (less deductions as in rest of this forum) but fear the rules dont seem to consider no dependents existing !

Weren't those contributions to cover the scenario where you could have died whilst in service?

You seem to want your cake and eat it too 

Suzycoll

WIltsboy said:

I have been having ongoing discussions with MyCSP trying to work out entitlement and whether or not I have a discrimination case around WPS contributions refunds.

Essentially widowed and no dependent children (too old) so effectively the same living status as someone who has been single since day 1.

RSS statement suggests I can only get refund from when partner passed until end of Classic which means almost 32 years of contibutions ignored purely becuase I was married during my service.

My view with no dependents I should be treated as per single person and receive full career refund (less deductions as in rest of this forum) but fear the rules dont seem to consider no dependents existing !

To be honest I think the CS rule is correct.
As your status (sadly) is not the same as being single since  day 1