Civil Service Classic Pension Scheme - Options on Retirement

JonathanPDavies

My wife has been a scheme member since 1987 and has a retained classic pension and a very small alpha pension. She retained her classic benefits in 2015 and has been purchasing additional classic years - does this mean she is not affected by the McLoud remedy?

As she works part-time already, it appears that the abatement policy means she gains little from continuing to work rather than retiring now at the age of 60. As she cannot partially retire,  she appears to lose the majority of her pension income if she doesn't take it. Are there any other options? 

Any thoughts or advice appreciated as the Pension Portal is hard to decipher and the contact points unresponsive.

Thanks

Dazed_and_C0nfused

Why do you think she might not be affected by McCLoud?

Part time doing 2 hours/week?  20 hours?  30 hours?

Why can't she take partial retirement?  Do you mean it's not actually possible.  Or it just doesn't seem a good option for her?

hugheskevi

JonathanPDavies said:

My wife has been a scheme member since 1987 and has a retained classic pension and a very small alpha pension. She retained her classic benefits in 2015 and has been purchasing additional classic years - does this mean she is not affected by the McLoud remedy?

She is subject to McCloud Remedy. Choosing alpha benefits for the 2015-22 period could make a material difference, as alpha-like benefits are not subject to abatement.

JonathanPDavies said:

As she works part-time already, it appears that the abatement policy means she gains little from continuing to work rather than retiring now at the age of 60. As she cannot partially retire,  she appears to lose the majority of her pension income if she doesn't take it. Are there any other options? 

She may have some options if she has not yet reached the age of 60. Otherwise, she could change employment, eg, to the LGPS or NHS.

JonathanPDavies

Dazed_and_Confused Thanks - she works two days a week at the moment and her department will not let her reduce further.

JonathanPDavies

Hugheskevi - thanks. She is just 60. Her Alpha benefits are minimal because she has only been contributing as a part time employee and she retained her Classic benefits.

hugheskevi

JonathanPDavies said:

Hugheskevi - thanks. She is just 60. Her Alpha benefits are minimal because she has only been contributing as a part time employee and she retained her Classic benefits.

I don't know what you mean by 'retained Classic benefits' - perhaps that she took tapered protection to remain in classic rather than moving to alpha on 1st April 20215. In due course she will be given an option to have classic or alpha-like service between 2015-22 (known as 'Deferred Choice Underpin') based on what you have said.

However, regardless of the above, her options do appear rather limited if her employer will not consent to Partial Retirement by reducing hours - perhaps she could agree changed job responsibilities to get a 20% salary reduction which would permit Partial Retirement? 

JonathanPDavies

Thanks - I will investigate Deferred Choice Underpin