Civil Service Pension Switching

mitch_gordon

Hi,

After reading through many posts I figured I would post my own question rather than trying to find answers in other's situations that might be similar.

I am currently 47 years old and have been employed in the Civil Service for 9 years. When I joined, I had previously been part of a Stakeholder Pension with a previous employer and decided that transferring my pot was the best option, especially given it was Standard Life (the same provider) at the time. The provider has now been transferred to Legal and General. I am therefor in the defined contributions pension.

I currently, pay 3% of my salary (which gets a 20% top up), CS matched is another 3% and then an age related 14.75%. So 20.75% is paid in at a 3% cost to me.

I have built a pension pot of £260,000 as of today. I have had a pension of some sort since I was around 20 years old and joined a large company who offered something.

I was considering switching to CS Alpha defined benefits, where the pension contributions would cost 5.45% (almost double what I pay now) where I would accrue a final salary with potentially 20 years service, If I work until 67. At that point I'll be eligible for a full State Pension.

Given my current annual salary and the 2.32% accrual, that would give me 20 years and approx £20k a year (not including payrises and promotion).

I have done some research of my own and it would appear that my current pot is in a good position with regards to value.

My question is should I consider stopping with the defined contribution pension where I would maintain that pot of money and starting the defined benefits pension. Meaning I would have £260,000 plus around £20k a year and a State Pension.

I'd be interested to hear your thoughts/opinions/ideas. Thanks.

DE_612183

If it was me - I'd got for alpha - there are other benefits as well if you have to retire early etc.

have you any dependants at all?

Dazed_and_C0nfused

Personally I would be moving to Alpha asap.

At today's rates you would have a guaranteed pension income of £31.5k at 67.

And a large DC pot to plunder as you wish.

You could also consider using the DC pot as a bridge between early retirement and getting the Alpha and State Pension at 67.

sammyjammy

Just to be clear its not a final salary pension its average salary but yes from what you've said if you intend to continue your career in CS it makes sense, then at retirement you have the flexibility of both DC and DB.

Universidad

To echo what others have said, CS Alpha becomes proportionately more valuable the older you are, because it accrues at the same rate no matter what age you are and then tracks inflation, where a DC scheme has less time in the market to get ahead.

There's also the value of certainty about your finances, which is hard to put a figure on, but I value it a lot.

I, personally, would have moved to alpha long before now because of that, but it is true that a good mix of DB and DC will be a lovely position to be in for the combination of security and flexibility

Fringegirl

I am 61 soon and have a deferred civil service pension. I am not very happy with the lump sum after 33 years of service it was only at £33,000 in October 2024. I have not been able to get an up to date statement from them despite numerous emails and telephone calls.

I raised an official complaint in May 2025 as I was unable to access the online portal or to get a statement from them. Months later they dismissed my complaint as they said Capita were taking over the website portal and this should address my issues? Having been aware of Capita I was not convinced and although I can access the new portal there is nothing on there - no statements or anything. Every time I ring up I am at least caller number 38 and have to wait at least 2 hours on hold. I tried contacting them via the portal but sent a message on 14/01/26 which has had no response. When I finally got through to an advisor on the phone yesterday I was told that there have been problems with the new portal and that Capita have not been able to deliver what was promised - statements might be on there at the end of March!!!!

I no longer work for the Civil Service and ironically work for another company as a Pensions Administrator and if our customers had these issues they would be livid.

I am thinking of moving my pension pot but don't know where to move it to for my last few years of working.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81889954#Comment_81889954

Surely as a pension administrator you realise you almost certainly don't have a "pot" to move?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81889954#Comment_81889954

Chances are you don't have a pension pot to move if you were in any of the CS DB legacy schemes such as Classic/Premium etc.

Not sure how you could be 'unhappy' with the lump sum as it's based on scheme and accrued pension, e.g. for classic the default lump sum is 3 x standard pension.

hugheskevi

I am 61 soon and have a deferred civil service pension.

You can calculate the current value of your deferred award using the multipliers at this page.

I am not very happy with the lump sum after 33 years of service it was only at £33,000 in October 2024

There has only been one revaluation date since then, of 1.7% in April 2025. So your lump sum will only be slightly higher than it was as at October 2024.

I have not been able to get an up to date statement from them despite numerous emails and telephone calls. I raised an official complaint in May 2025 as I was unable to access the online portal or to get a statement from them.

You are only entitled to 1 deferred member statement each 12 months.

I was told that there have been problems with the new portal and that Capita have not been able to deliver what was promised - statements might be on there at the end of March!!!!

I rather doubt deferred statements will be on the portal, and the phone operator was talking about active members' past statements.

I am thinking of moving my pension pot but don't know where to move it to for my last few years of working.

You are only able to move it to a scheme offering Defined Benefit pensions, which in practice almost certainly means elsewhere in the public sector.