Civil service premium pension

hugheskevi

Sliceoflemon said:

Thank you Hugheskevi.
So putting things very simply,  it looks to me like taking 100% proportion of the legacy classic plus pension at 60 (option A) gives me the best outcome (assuming I don't get an unlikely salary hike) as it is already fixed. Even with the possibility of greater abatement under option A, I will be no worse off (in terms of money in pocket) than if I were to choose option B, and I may benefit if I decided to fully retire sooner rather than later.. is that more or less correct? 
Many thanks - honestly - I am so grateful for all this guidance!! ☺️ 

I suspect Option B would be better from the figures you posted if abatement applies. Under Option A all of your 2015-22 accrual in classic plus counts toward abatement, whereas under Option B none of it does. Given the amounts payable under Option A and B are essentially the same bar c£100 p/a then if abatement applies it will be much higher under Option A than it is under B.

Sliceoflemon

Thanks, but if I take abatement out of the equation and decide to fully retire sooner than later, would option A be better in that scenario? I didn't appreciate the benefit of having classic plus, though all those years ago ticked that box vaguely assuming that paying more towards pension would benefit me in the long run - so in terms of the retirement figures has it made alot of difference?

hugheskevi

Sliceoflemon said:

Thanks, but if I take abatement out of the equation and decide to fully retire sooner than later, would option A be better in that scenario? I didn't appreciate the benefit of having classic plus, though all those years ago ticked that box vaguely assuming that paying more towards pension would benefit me in the long run - so in terms of the retirement figures has it made alot of difference?

Marginally, but only by £100 p/a.

In terms of retirement figures, it is hard to say how much better classic plus is compared to classic for the period 2002-22. We know classic plus and alpha are very similar values for 2015-22. It may well have been quite a lot better than classic, particularly if you have not been promoted much. With the benefit of hindsight, a full switch of both past and future service to premium may have been best, but probably not by very much if the main benefit came from the much better final pensionable earnings definition used in premium and classic plus.