Civil Service pensions? (Nuvos or partnership)

Porto_2

Hi, I have recently started working for the government and have been offered a pension plan, and I know nothing about pensions . So far looking through the infomation pack I seem to have two options being a nuvos or partnership pension, where I believe the nuvos scheme is a normal civil service pension and the partnership pension is linked to the 'market'. So I was wondering if any other civil servants has any experience with either of these options? and may have any suggestions, or sources of info that might help me in making a choice. Thanks.

jem16

I would say that the Nuvos scheme being final salary will be a better option that the Partnership scheme as the Partnership scheme is dependent on how well your funds do.

Andy_L

Nuvos is the new, retire at 65, career average scheme (ie still defined benefit but not final salary)
Partnership is the money purchase scheme.

How old are you? The older you are the higher the employers contributions to partnership. If it's high enough the flexibility of partnership might make up for the lack of certanity.

jem16

Andy_L wrote: »

Nuvos is the new, retire at 65, career average scheme (ie still defined benefit but not final salary).

So how is the pension worked out then?

EdInvestor

Instead of basing the pension on your final year's salary they take your average salary over your career (or a portion of it) and base it on that.

Porto_2

Andy_L wrote: »

Nuvos is the new, retire at 65, career average scheme (ie still defined benefit but not final salary)
Partnership is the money purchase scheme.

How old are you? The older you are the higher the employers contributions to partnership. If it's high enough the flexibility of partnership might make up for the lack of certanity.

hi, I am 29 so guess my employers contributions would be low currently. Also I am uncertain if I will continue to work in the civil service for the rest of my working life, so does that mean the partnership pension would be more suitable? Thanks.

Andy_L

jem16 wrote: »

So how is the pension worked out then?

[FONT=&quot]Each year you get 2.3% (~1/43rd) of that years pensonable pay as a pension which will be RPI'd every year till retirement.
The next year you get 2.3% of that years earnings & so on.

You can then commute (at 12:1) for a lump sum

The rate is supposed to be equivalent to the 1/60ths final salary rate but shares benefits more evenly between those who don't get full service & those who do and stops people maximising income in the last few years of service (eg lots of overtime, shift, last ditch promotion) to boost their pension. It also makes the costs/benefits more predictable.
[/FONT]

Andy_L

Porto wrote: »

hi, I am 29 so guess my employers contributions would be low currently.

The partnership contributions are:
Under 21 3%
21 to 25 4.5%
26 to 30 6.5%
31 to 35 8%
36 to 40 10%
41 to 45 11.5%
46 or over 12.5%
In addition you get a 3% matching contributions so you'd get 9.5%.

Porto wrote: »

Also I am uncertain if I will continue to work in the civil service for the rest of my working life, so does that mean the partnership pension would be more suitable? Thanks.

With Nuvos you don't lose out if you leave early as you did with the final salary scheme so it's down to you (or your IFA) whether you think investing 9.5% of this years salary over 36 years will give you more pension than 2.3% of this years salary with 36 years of RPI increase.

magsirl

Hi

I have read the thread but unfortunately I am unsure what it means in my case? I will be starting a 1 year fixed term contract with the civil service soon. I have to make a choice of which pension scheme to join. I am 50 this month and would love some advice on what would seem to be the best option in my case.I would love if a permanent job became available during my 1 year contract and I would certainly apply for a permanent post.

I have 5 years persion with my present employers and am not sure if this can be transfered or if this has to be left until I reach 65 to apply for it? Any advise much appreciated. Many thanks Margaret

mcchell

My boyfriend who is a civil servant says that if you contact the pensions department once you have started they will be able to tell you how many "added years" your current pension will be worth. You will of course need a final figure from your current pension scheme. You will then be able to decide if it is worth you transfering your existing pension over.

magsirl

Many thanks mcchell for your reply I will certainly ask this when I start!