Classic Civil Service Pension - start date has passed, when can I expect them to pay it?

Jonx999

I worked for the civil service many years ago and have a "classic" Civil Service Pension which should've started last week.  After badgering them, I finally received the quotation confirming the lump sum and pension amounts and the start date a few weeks ago, and immediately completed and returned the forms providing bank account details etc.  I've heard nothing since.

Anyway, the pension start date has passed and nothing has been paid into my account yet.  I'll phone the Civil Service Pension Scheme tomorrow to discuss things, but wondered if anyone else has been in this situation.  In particular I'm concerned about the lump sum payment (a five-figure sum); I want to get this invested asap so it's frustrating to lose out on interest because of their delays.  If the CSPS fail to pay me this promptly then are they required to add interest to the amount? 

kassy64

In hindsight you should maybe have got on to them about 3-6 months ago, and filled the forms out then. I expect it will all get sorted but as you've not given them much notice expect things to be delayed slightly. It will all be backdated. When I was working in Civil Service up to retirement they asked for at least 6 months notice of expected retirement date.

hugheskevi

Jonx999 said:

In particular I'm concerned about the lump sum payment (a five-figure sum); I want to get this invested asap so it's frustrating to lose out on interest because of their delays.  If the CSPS fail to pay me this promptly then are they required to add interest to the amount? 

No, no requirement for interest, just back-dating to the date it should have commenced. The only feature where interest is paid is on WPS refund (if you do not have a partner).

Jonx999

kassy64 said:

In hindsight you should maybe have got on to them about 3-6 months ago, and filled the forms out then.

Actually they contacted me last year to confirm the pension start date, and said I should hear from their pension admin team by 26 January.  Perhaps my mistake was to trust them; it was only after that date had passed with zero contact that I started chasing them.

Unfortunately the old "classic" pension isn't supported by the CSP online portal; everything has to be done using old-fashioned paper forms and it isn't possible to monitor pension progress online.  Oh well.

kassy64

Unfortunately they still require a 'wet' signature on all the paperwork (and that includes the new Alpha pension, or they did last year) regarding your instructions on bank details, other pensions re. LTA,  how you want lump sum payment split etc etc. etc
The Portal does support the Classic pension, but not any that are deferred as sounds as though yours was.

ali_bear

Did you get your pension in the end? 

I have a small CS classic coming to me, in a couple of years time, from a brief stint as a CS back in the 90's. I am wondering what flexibility there is in giving up the tax-free amount for an increased income, or vice-versa (that's why I did a search). 

hugheskevi

ali_bear said:

Did you get your pension in the end? 

I have a small CS classic coming to me, in a couple of years time, from a brief stint as a CS back in the 90's. I am wondering what flexibility there is in giving up the tax-free amount for an increased income, or vice-versa (that's why I did a search). 

The term for converting Pension Commencement Lump Sum into pension is 'inverse commutation'

Normal commutation is exchanging pension for Pension Commencement Lump Sum at the rate of £1 of pension for £12 of lump sum.

Inverse commutation is a considerably higher rate, around £20 of lump sum for £1 of pension.

ali_bear

Ah OK thanks. Not forgetting that the pension is taxed as income. 

Suzycoll

hugheskevi said:

Jonx999 said:

In particular I'm concerned about the lump sum payment (a five-figure sum); I want to get this invested asap so it's frustrating to lose out on interest because of their delays.  If the CSPS fail to pay me this promptly then are they required to add interest to the amount? 

No, no requirement for interest, just back-dating to the date it should have commenced. The only feature where interest is paid is on WPS refund (if you do not have a partner).

hi hugheskevi

apologies for jumping on your answer to this question ! 

regarding WPS...I am part retired and already have my Classic pension in payment (18 years service). I am now paying into Alpha part time. I have been single all my civil service working life and they said i will be entitled to WPS refund when i finally retire (approx 10 years service by then)

By any chance do you know how much my WPS refund would be approximately ? or how it is worked out ? i have tried to find out but failed abysmally.

hugheskevi

Suzycoll said:

hugheskevi said:

Jonx999 said:

In particular I'm concerned about the lump sum payment (a five-figure sum); I want to get this invested asap so it's frustrating to lose out on interest because of their delays.  If the CSPS fail to pay me this promptly then are they required to add interest to the amount? 

No, no requirement for interest, just back-dating to the date it should have commenced. The only feature where interest is paid is on WPS refund (if you do not have a partner).

regarding WPS...I am part retired and already have my Classic pension in payment (18 years service). I am now paying into Alpha part time. I have been single all my civil service working life and they said i will be entitled to WPS refund when i finally retire (approx 10 years service by then)

By any chance do you know how much my WPS refund would be approximately ? or how it is worked out ? i have tried to find out but failed abysmally.

The WPS refund is the part of your contributions that relate to the WPS contribution, which is 1.5% of salary. That means that all your contributions to 2012 are refunded, as the only contribution was the WPS contribution. After  pension contribution increases from 2012 onwards, it remained at 1.5% but for the post 2012 period only part of the total contribution is refunded.

The refund for each year has interest based on average building society saving account applied, and then a deduction is applied to cover survivor benefits for post-pension commencement marriages. Often, the interest and the post pension commencement deduction largely offset each other.

I'm not sure how it is paid in cases of partial retirement. Under a normal retirement it would form part of the pension commencement lump sum and so be tax free, but if all of your classic benefits are in payment that cannot happen so presumably it will be taxable at marginal rate or maybe inversely commuted into extra classic pension.

Suzycoll

hugheskevi said:

Suzycoll said:

hugheskevi said:

Jonx999 said:

In particular I'm concerned about the lump sum payment (a five-figure sum); I want to get this invested asap so it's frustrating to lose out on interest because of their delays.  If the CSPS fail to pay me this promptly then are they required to add interest to the amount? 

No, no requirement for interest, just back-dating to the date it should have commenced. The only feature where interest is paid is on WPS refund (if you do not have a partner).

regarding WPS...I am part retired and already have my Classic pension in payment (18 years service). I am now paying into Alpha part time. I have been single all my civil service working life and they said i will be entitled to WPS refund when i finally retire (approx 10 years service by then)

By any chance do you know how much my WPS refund would be approximately ? or how it is worked out ? i have tried to find out but failed abysmally.

The WPS refund is the part of your contributions that relate to the WPS contribution, which is 1.5% of salary. That means that all your contributions to 2012 are refunded, as the only contribution was the WPS contribution. After  pension contribution increases from 2012 onwards, it remained at 1.5% but for the post 2012 period only part of the total contribution is refunded.

The refund for each year has interest based on average building society saving account applied, and then a deduction is applied to cover survivor benefits for post-pension commencement marriages. Often, the interest and the post pension commencement deduction largely offset each other.

I'm not sure how it is paid in cases of partial retirement. Under a normal retirement it would form part of the pension commencement lump sum and so be tax free, but if all of your classic benefits are in payment that cannot happen so presumably it will be taxable at marginal rate or maybe inversely commuted into extra classic pension.

this is so helpful . Thank You
The only bit I'm not happy with is some is kept back for post retirement marriages. I can ensure everybody I will never marry again !  ha