CSP Alpha 2023 Pension Statement with 2015 McCloud Remedy

CloesUnc

Good afternoon and happy new year all!

This morning I finally received my 2023 pension statement, which includes the effects of the 2015 Remedy (McCloud). Will I also receive a statement that does NOT include the effects of the remedy?

For retirement planning I have been working on the assumption that my choice will be pre-Remedy and that I would take Alpha actuarially reduced (possibly starting middle of this year). It's a bit disconcerting however to see the much reduced Alpha figure this time around (with of course the larger Premium pension figure). I know I will receive a quote from MyCSP when I apply, BUT the steps to applying for retirement mentions checking the estimate on the Pension Portal and m ine now only contains the remedy version!

Thanks all.

hugheskevi

This morning I finally received my 2023 pension statement, which includes the effects of the 2015 Remedy (McCloud). Will I also receive a statement that does NOT include the effects of the remedy?

For retirement planning I have been working on the assumption that my choice will be pre-Remedy and that I would take Alpha actuarially reduced (possibly starting middle of this year). It's a bit disconcerting however to see the much reduced Alpha figure this time around (with of course the larger Premium pension figure). I know I will receive a quote from MyCSP when I apply, BUT the steps to applying for retirement mentions checking the estimate on the Pension Portal and m ine now only contains the remedy version!

Your 2024 Annual Benefit Statement, due by 31st August 2024, will contain information about both options under the 2015 Remedy.

So it is likely that you will get your retirement quote under both options before this, when you apply to commence your pension.

CloesUnc

hugheskevi said:

This morning I finally received my 2023 pension statement, which includes the effects of the 2015 Remedy (McCloud). Will I also receive a statement that does NOT include the effects of the remedy?

For retirement planning I have been working on the assumption that my choice will be pre-Remedy and that I would take Alpha actuarially reduced (possibly starting middle of this year). It's a bit disconcerting however to see the much reduced Alpha figure this time around (with of course the larger Premium pension figure). I know I will receive a quote from MyCSP when I apply, BUT the steps to applying for retirement mentions checking the estimate on the Pension Portal and m ine now only contains the remedy version!

Your 2024 Annual Benefit Statement, due by 31st August 2024, will contain information about both options under the 2015 Remedy.

So it is likely that you will get your retirement quote under both options before this, when you apply to commence your pension.

Wow, thank you very much for your very quick reply. OK, thanks for the info. Upon re-reading the cover page of the statement there is the phrase "you will see both alpha and legacy benefits for the remedy period on your 2024

statement." I guess you mean that that should be interpreted as talking about "the options".

horsewithnoname

You will get the choice on your options form from MyCsp. This is the form you get when you apply to retire/partially retire to tell them which and how much pension you want to take. It shows both sets of figures, i.e., with the 7 years in your legacy scheme and also with the 7 years in alpha so you can choose whichever suits you best. 

The annual benefit statement for 2024 onwards should show both “McCloud” options. 

marky_b_2

You can edit your details on the retirement modeller on the Civil Service Pension website. The edit button is at the bottom of the retirement modeller page.


You can increase / decrease the previous Classic / Premium pensions amounts as well as doing the opposite to the Alpha pension to get both scenarios, you can also update your pensionable pay figure, if it isn’t accurate.


I have either 18.8 years or 11.8 years in Premium depending on what I do with Alpha and the McCloud remedy

If I have the correct formula, it’s the length of service divided by 60 (Premium in my case) (80 figure if Classic) then times by your pensionable pay 

ie. for Premium 

18.8 / 60 * pensionable pay (taking remedy)

11.8 / 60 * pensionable pay (leaving the 7 years in Alpha)

hugheskevi

If I have the correct formula, it’s the length of service divided by 60 (Premium in my case) (80 figure if Classic) then times by your pensionable pay 

ie. for Premium 

18.8 / 60 * pensionable pay (taking remedy)

11.8 / 60 * pensionable pay (leaving the 7 years in Alpha)

To note that when it comes to calculating pension (rather than just using the modeler) it isn't pensionable pay that is used, but final pensionable earnings. Final pensionable earnings is determined under the scheme rules, eg, for classic looking at pensionable pay over last 12 months then using 90 day step-backs to examine for past higher pensionable pay, and if identified then inflation-adjusting that past pensionable earnings to the present time.

For Premium, the use of inflation-adjusted earnings from up to 13 past years to calculate final pensionable earnings will often mean final pensionable earnings are much higher than pensionable pay (eg 10%+ higher). This rather undermines the use of comparisons, as final pensionable earnings are not provided to active members, even on Annual Benefit Statements.

german_keeper

hugheskevi said:

If I have the correct formula, it’s the length of service divided by 60 (Premium in my case) (80 figure if Classic) then times by your pensionable pay 

ie. for Premium 

18.8 / 60 * pensionable pay (taking remedy)

11.8 / 60 * pensionable pay (leaving the 7 years in Alpha)

To note that when it comes to calculating pension (rather than just using the modeler) it isn't pensionable pay that is used, but final pensionable earnings. Final pensionable earnings is determined under the scheme rules, eg, for classic looking at pensionable pay over last 12 months then using 90 day step-backs to examine for past higher pensionable pay, and if identified then inflation-adjusting that past pensionable earnings to the present time.

For Premium, the use of inflation-adjusted earnings from up to 13 past years to calculate final pensionable earnings will often mean final pensionable earnings are much higher than pensionable pay (eg 10%+ higher). This rather undermines the use of comparisons, as final pensionable earnings are not provided to active members, even on Annual Benefit Statements.

Very grateful to you my friend for your knowledge over the last few years but do you really need to keep reminding me of the Premium CPI protection!!!!