Civil service pension - deferred member - retirement quote

njtt

Hi, this is a further thread to questions I raised last year (thanks for those who replied - the responses were very helpfuI).

I am a civil servant who is now 60 (I was 60 in Dec 22). While I continue to be employed, in May 22 I opted out of the civil service pension altogether to benefit from index-linking of the deferred pension. I applied for my pension to be paid from 26 November 23.

I just got my retirement quote from mycsp. It includes a quote to Dec 22 with no index-linking. There is no further explanation. 

This is not what I expected because there is no provision for index-linking.

What I expected was a calcluation based on my pension at the date I opted out (31 May 22) which would then be index linked to April 23 (pro-rata at the 10.1% inflation, so around 8%), and then adjusted again (somehow) for the period after Apr 23. 

Clearly the latter adjustment cannot be made yet (since the relevant inflation figure has not yet been fixed) but the figures, as given, seem to assume that I am still in the pension scheme rather than having opted out (I only opted out to get the benefit of index linking since inflation was so much higher than pay rises and most of my pension was in the Classic scheme).

Does anyone know how the retirement quote is presented for deferred members?

kassy64

Have you requested annual pension statements on the deferred pension? These would show the index linking. I deferred my CS pension back in 2015 and although the benefit statements weren't sent out automatically they were provided on request (which I always did). These annual statements always showed the CPI pension increase in my case.
If not have you given them a call to query why there has been no uplift since you left the scheme?

njtt

Thanks for the reply. Yes, I did request a statement in Nov 22 (6 months after I opted out).

Looking at it now, they did not include it then. It says:

"Your classic preserved pension at the date you left the scheme

Your annual classic pension: £X Your standard lump sum: £Y

Your classic preserved pension at the date of this statement (Nov 22)

Your annual classic pension: £X[ie the same figure - no index linking] Your standard lump sum: £[also the same figure]"

It seems like they have not treated me as a deferred member (but rather just as someone who moved from Classic to Alpha) and so have not index-linked it.

I have queried it and so I'll let you know the reply.

What I didn't (and don't understand) is why, when I have asked for a quote in October 2023, they have given me a quote for December 2022 - almost a year ago. Presumably the quote should be to the date now, not 10 months ago?