Abatement

Les1867

Dear all,

I hope someone can provide some advice regarding avoiding abatement.

I am a civil servant and took partial retirement om 01/06/24.

I took my full lump due to health issues.

My Salary of reference is £37,012.70

My Pension, actuarially is £24,192.53

Total pension payable from 01/06/24 is £17,030.17 as I took the maximum lump sum.

In order to avoid abatement which figure do I use?

Is it £24,192.53 + £12,820.17

or £17,030.17 + £19,982.53?

Thanks in advance.

Phoenix72

If Classic scheme then commuting pension to lump sum does not affect abatement so it would be the full £24;192.

german_keeper

If you took partial retirement on 1 June I'm not sure there is anything you can do to avoid abatement if it applies. The die is already cast isn't it?

Andy_L

Les1867 said:

Dear all,

I hope someone can provide some advice regarding avoiding abatement.

I am a civil servant and took partial retirement om 01/06/24.

I took my full lump due to health issues.

My Salary of reference is £37,012.70

My Pension, actuarially is £24,192.53

Total pension payable from 01/06/24 is £17,030.17 as I took the maximum lump sum.

In order to avoid abatement which figure do I use?

Is it £24,192.53 + £12,820.17

or £17,030.17 + £19,982.53?

Thanks in advance.

oddly its neither

"If you were in classic, we’ll apply abatement as if you had taken a standard lump sum.

If you were in classic plus, premium or nuvos, we’ll work out the abatement as if you had exchanged some of your pension to take a standard lump sum. We multiply your initial pension by 0.8125 (if you were in classic plus, we assume you took the standard lump sum for service before 1 October 2002; the post October 2002 pension is multiplied by 0.8125). This ensures abatement applies consistently regardless of how much lump sum you choose to take."

ie they will assume a pension of 0.8125 x £24,192.53 = £19,656

https://www.civilservicepensionscheme.org.uk/planning-for-retirement/what-are-my-options/partial-retirement/abatement/#:~:text=If you retire taking your,than you earned before retirement.

Les1867

Thanks for your comments.

I was in Classic Plus.