Civil Service Pension - EPA

Dazed_and_C0nfused

HouseMartin567 said:

michaels said:

Avcs are effectively just a sipp so might be worth shopping around for providers rather than just using the cs scheme

Being purely lazy (and possibly not in alignment with a money saving website), I’m attracted to AVCs because, as far as I understand, it will be deducted by PAYE and I won’t need to fill out s self assessment to claim back the extra tax (I’m in the 40% tax bracket). However, I will look into the options available.

You don't need to complete a tax return to claim higher rate relief on pension contributions (assuming you don't meet any other criteria for Self Assessment).

But irrespective of that net pay contributions like the normal Alpha ones are far simpler as, unless you don't earn enough to pay tax, you get the maximum tax saving straight away each pay day.

HouseMartin567

Thanks @Dazed_and_C0nfused I was under the misconception that claiming back would be through self assessment but after searching the forum I see you can just write to HMRC to let them know.

Universidad

HouseMartin567 said:

Being purely lazy (and possibly not in alignment with a money saving website), I’m attracted to AVCs because, as far as I understand, it will be deducted by PAYE and I won’t need to fill out s self assessment to claim back the extra tax (I’m in the 40% tax bracket). However, I will look into the options available.

You're spot on that PAYE makes it effortless for HR tax payers, and that is certainly why I did it that way. 

However, claiming HR tax back for DC pension payments doesn't actually require a full self assessment and can be done much more easily. So the AVCs are even more of a lazy solution than you may have assumed. But I am that lazy, and so...

IAMIAM

I thought NHS/Civil EPA is similar to my teachers AAB Buyout. My rate of 2.19% has been fixed since 2015 and not changed? Even though my salary has....should I be worried?

Yorkie1

Universidad said:

HouseMartin567 said:

Are you able to purchase both Added Pension and AVCs at the same time? At the moment I just buy Added Pension but I’m wondering whether to split between the two options.

Yes, I was purchasing both AVCs and EPA earlier this year. I stopped the AVCs when I had to drop my hours for family reasons.

Worth noting that Added Pension and EPA as monthly payments have to be in place from April-April and you can't opt in or out mid-year. AVCs you can take and leave as you like.

I think the deadline for applying (for the first time) for Added pension and EPA may be sometime before April - possibly even this month for at least one of them. Best to double check, rather than assume you can leave any decisions until mid-March.

I do EPA and AVCs, with the intention of retiring at 60-ish on my Classic scheme, using the AVCs to help fund the gap until I can take Alpha at 65 (EPA-2 / actuarial reduction for other years). I do have other savings too.

AVCs are dead easy, so I'm happy to take the likelihood of a lower return with them than I would in SIPPs.

My thought process started 18 months ago (where has the time gone?!) 
https://forums.moneysavingexpert.com/discussion/6453715/civil-service-avcs-and-amounts/ 

hugheskevi

IAMIAM said:

I thought NHS/Civil EPA is similar to my teachers AAB Buyout. My rate of 2.19% has been fixed since 2015 and not changed? Even though my salary has....should I be worried?

No need to be worried. Some schemes operate the arrangements like a contract with the price fixed at the outset, whereas the Civil Service operates EPA more like an arrangement to pay, with the price changing every year.

IAMIAM

hugheskevi said:

IAMIAM said:

I thought NHS/Civil EPA is similar to my teachers AAB Buyout. My rate of 2.19% has been fixed since 2015 and not changed? Even though my salary has....should I be worried?

No need to be worried. Some schemes operate the arrangements like a contract with the price fixed at the outset, whereas the Civil Service operates EPA more like an arrangement to pay, with the price changing every year.

Thats good to know, although I have read in the terms it could change but its not done in 10 years. I am hoping to take all my career average pension age 65 with no reduction because of paying this extra amount every year.

HouseMartin567

Yorkie1 said:

Universidad said:

HouseMartin567 said:

Are you able to purchase both Added Pension and AVCs at the same time? At the moment I just buy Added Pension but I’m wondering whether to split between the two options.

Yes, I was purchasing both AVCs and EPA earlier this year. I stopped the AVCs when I had to drop my hours for family reasons.

Worth noting that Added Pension and EPA as monthly payments have to be in place from April-April and you can't opt in or out mid-year. AVCs you can take and leave as you like.

I think the deadline for applying (for the first time) for Added pension and EPA may be sometime before April - possibly even this month for at least one of them. Best to double check, rather than assume you can leave any decisions until mid-March.

I do EPA and AVCs, with the intention of retiring at 60-ish on my Classic scheme, using the AVCs to help fund the gap until I can take Alpha at 65 (EPA-2 / actuarial reduction for other years). I do have other savings too.

AVCs are dead easy, so I'm happy to take the likelihood of a lower return with them than I would in SIPPs.

My thought process started 18 months ago (where has the time gone?!) 
https://forums.moneysavingexpert.com/discussion/6453715/civil-service-avcs-and-amounts/ 

For monthly Added Pension contributions for 2025/2026 the deadline is 7th March.

Thanks for the link to your previous thread. I have been purely making extra contributions through Added Pension but I think I’m going to split this between Added Pension and AVCs. My rationale is that I can take the AVCs earlier without reduction to my DB pension (mine will be about 90% alpha at NPA, and 10% nuvos at 65). Secondly, my spouses pension situation isn’t as good, so although I have been including Dependents on my Added Pension, I like the fact that the AVC pot will pass on.

hugheskevi

HouseMartin567 said:

Yorkie1 said:

Universidad said:

HouseMartin567 said:

Are you able to purchase both Added Pension and AVCs at the same time? At the moment I just buy Added Pension but I’m wondering whether to split between the two options.

Yes, I was purchasing both AVCs and EPA earlier this year. I stopped the AVCs when I had to drop my hours for family reasons.

Worth noting that Added Pension and EPA as monthly payments have to be in place from April-April and you can't opt in or out mid-year. AVCs you can take and leave as you like.

I think the deadline for applying (for the first time) for Added pension and EPA may be sometime before April - possibly even this month for at least one of them. Best to double check, rather than assume you can leave any decisions until mid-March.

I do EPA and AVCs, with the intention of retiring at 60-ish on my Classic scheme, using the AVCs to help fund the gap until I can take Alpha at 65 (EPA-2 / actuarial reduction for other years). I do have other savings too.

AVCs are dead easy, so I'm happy to take the likelihood of a lower return with them than I would in SIPPs.

My thought process started 18 months ago (where has the time gone?!) 
https://forums.moneysavingexpert.com/discussion/6453715/civil-service-avcs-and-amounts/ 

For monthly Added Pension contributions for 2025/2026 the deadline is 7th March.

Thanks for the link to your previous thread. I have been purely making extra contributions through Added Pension but I think I’m going to split this between Added Pension and AVCs. My rationale is that I can take the AVCs earlier without reduction to my DB pension (mine will be about 90% alpha at NPA, and 10% nuvos at 65). Secondly, my spouses pension situation isn’t as good, so although I have been including Dependents on my Added Pension, I like the fact that the AVC pot will pass on.

Are you aware of the availability to 'allocate' some of your Civil Service pension? This enables you to choose when you commence the pension to apply a reduction to your pension in return for enhanced survivor benefits should you die before your spouse. Obviously, if they die before you do, you lose out as you have a lower pension without any gain for the survivor.

Option is described at this link.

Its_all_Dinx

Hello,   I hope its OK to piggy back of this thread,

I have just joined a civil service sector and was looking in EPA,  

Is it still worth it?

Ideally I wanted to stop working after I done my 35 years of state pension which will take me upto 50 years of age and then at 68 I get state pension.

I was reading I can only reduce my NPA to 65 by paying EPA.

I would like to take my civil service pension as soon as possible but not lose out too much by taking it too early.  if needed I can delay taking it.