Civil Service Alpha - CETV Value for less than 2 years service.

DE_612183

Ok, so bit of a niche question, but my understanding is that if you leave the CS before 2 years service - you either get a refund of YOUR contributions or a CETV which can be transferred into another scheme.

So Question 1 - would another scheme be something like NEST or does it have to be another CS job?

Question 2 - I believe that the calculation is based on the pensionable earnings multiplied by two factors to arrive at a transfer value - I'm sure I've seen some tables somewhere but can't for the life of me find tham.

Any help gratefully recieved!

hugheskevi

DE_612183 said:

So Question 1 - would another scheme be something like NEST or does it have to be another CS job?

Any UK registered pension scheme, which would include NEST.

DE_612183 said:

Question 2 - I believe that the calculation is based on the pensionable earnings multiplied by two factors to arrive at a transfer value - I'm sure I've seen some tables somewhere but can't for the life of me find tham.

All factors are in this linked spreadsheet. Guidance for use is at this link. It is based on alpha accrual and age, not pensionable earnings (although alpha entitlement is derived from pensionable earnings).

Marcon

DE_612183 said:

Ok, so bit of a niche question, but my understanding is that if you leave the CS before 2 years service - you either get a refund of YOUR contributions or a CETV which can be transferred into another scheme.

So Question 1 - would another scheme be something like NEST or does it have to be another CS job?

Question 2 - I believe that the calculation is based on the pensionable earnings multiplied by two factors to arrive at a transfer value - I'm sure I've seen some tables somewhere but can't for the life of me find tham.

Any help gratefully recieved!

Easier by far to ask the scheme for a transfer value - which will be vastly better in cash terms than simply taking a refund of your own contributions (which would be minus tax, so even smaller). 

DE_612183

Marcon said:

DE_612183 said:

Ok, so bit of a niche question, but my understanding is that if you leave the CS before 2 years service - you either get a refund of YOUR contributions or a CETV which can be transferred into another scheme.

So Question 1 - would another scheme be something like NEST or does it have to be another CS job?

Question 2 - I believe that the calculation is based on the pensionable earnings multiplied by two factors to arrive at a transfer value - I'm sure I've seen some tables somewhere but can't for the life of me find tham.

Any help gratefully recieved!

Easier by far to ask the scheme for a transfer value - which will be vastly better in cash terms than simply taking a refund of your own contributions (which would be minus tax, so even smaller). 

Hi Marcon - yes I assumed that - although in the literature it wasn't obvious that there was a choice!

DE_612183

hugheskevi said:

DE_612183 said:

So Question 1 - would another scheme be something like NEST or does it have to be another CS job?

Any UK registered pension scheme, which would include NEST.

DE_612183 said:

Question 2 - I believe that the calculation is based on the pensionable earnings multiplied by two factors to arrive at a transfer value - I'm sure I've seen some tables somewhere but can't for the life of me find tham.

All factors are in this linked spreadsheet. Guidance for use is at this link. It is based on alpha accrual and age, not pensionable earnings (although alpha entitlement is derived from pensionable earnings).

Thanks @hugheskevi - the guidance talks about "deferred" pension, and I see that you talk about alpha accrual - in their  example - see below what does the £5600 represent?

If I have been there 12 months, then my pensionable earnings (£52k ) * 2.32% gives me £1,206 - so is that the figure I would use?

hugheskevi

£5,600 is the accrued alpha pension of the deferred member.

If you had been there 12 months there would be revaluation of some or all of the pension to also take into account, along with the £1,206.