Civil Service Pension - EPA

JoeCrystal

Its_all_Dinx said:

Back to question,   would it be worth paying for EPA?

And if yes, Could I pay EPA for 6 years to bring my age to claim to 62 from 68?

No, as you can only reduce it up to three years before SPA (You better need to do some more readings as the website clearly stated it. ) and even then, SPA will be subject to change (naturally upwards). As for paying for the EPA, do the math on that yourself, as only you can work it out in your situation. 

Dazed_and_C0nfused

Its_all_Dinx said:

Back to question,   would it be worth paying for EPA?

And if yes, Could I pay EPA for 6 years to bring my age to claim to 62 from 68?

No, @hugheskevi explained earlier.

You can reduce it by up to 3 years.. If in the future State Pension age increases, so would your EPA age - so you would be reducing it by 3 years, not changing it to 65.

Its_all_Dinx

@JoeCrystal & @Dazed_and_C0nfused. I did my maths and sure did alot of reading.

I think personally,  I will skip the EPA, as I will get more in return from investing the money instead of putting it into pension,  plus who knows, I may stay on and keep working and won't need EPA.

I have pension building up from my current part time job and also previous jobs.   I just need to be super smart when I come to claim them to avoid paying too much tax on them.

I saw on another thread just @hugheskevi explained it to a newbie who just joined the Alpha Pension about pros and cons.

Thanks everyone.   very useful info and alot for me to think about.

Universidad

Its_all_Dinx said:

who knows, I may stay on and keep working and won't need EPA.

Just one point on this: EPA doesn't force you to retire early. In fact in a sense there isn't a "retirement age" with any part of Alpha. There is a "normal pension age" which is based on the "state pension age". 

The NPA is the age on which the amounts quoted in your Annual Benefit Statement are based. But you can retire up to 10 years earlier than that, and you can also retire later than that.

If you do retire earlier than the NPA then the amount you get as pension each year is reduced, to account for the fact that it will be in payment longer. If you retire later than the NPA then the amount you get as pension each year is increased, because it will be in payment for less time.

The EPA bit of your pension is just a pension with a lower NPA, it doesn't commit you to anything.

michaels

Universidad said:

Its_all_Dinx said:

who knows, I may stay on and keep working and won't need EPA.

Just one point on this: EPA doesn't force you to retire early. In fact in a sense there isn't a "retirement age" with any part of Alpha. There is a "normal pension age" which is based on the "state pension age". 

The NPA is the age on which the amounts quoted in your Annual Benefit Statement are based. But you can retire up to 10 years earlier than that, and you can also retire later than that.

If you do retire earlier than the NPA then the amount you get as pension each year is reduced, to account for the fact that it will be in payment longer. If you retire later than the NPA then the amount you get as pension each year is increased, because it will be in payment for less time.

The EPA bit of your pension is just a pension with a lower NPA, it doesn't commit you to anything.

Is the max 10 years before SPA bit correct. I thought it was 55?

IAMIAM

I have paid for 3 Year EPA with my teachers pension. It is costing me about £90 per month age 40, about £1k per year.  I plan to retire at 60, so technically will have 5 years actuarial reduction as opposed to 8. I doubt my SPA will change from 68, it'll probably change for people now younger than me.

I also pay for an extra £250 APB every year too. I just want to see how I can claim this part without the 8 year reduction or leave it until age 63/65 and just claim my main benefits first....I dont think there is a way around this.

I think it is worth it.

Universidad

michaels said:

Is the max 10 years before SPA bit correct. I thought it was 55?

No, I think you're right, the scheme just says 55.

Not sure if there is any nuance to this with NMPA and unqualified rights, or if it will rise in line with SPA changes at some point.

hugheskevi

Universidad said:

michaels said:

Is the max 10 years before SPA bit correct. I thought it was 55?

No, I think you're right, the scheme just says 55.

Not sure if there is any nuance to this with NMPA and unqualified rights, or if it will rise in line with SPA changes at some point.

Minimum age of access to alpha is currently 55. 

It has not been publicised whether or not alpha has a protected minimum pension age or not (ie those in alpha as at 3 November 2021 may retain access from age 55 if it is protected).

On 6 April 2028 the standard minimum pension age increases to 57 - anyone who joined alpha after 4 November 2021 (and everyone, should alpha not be a protected scheme) will not be able to access alpha until age 57. The change is simply to age 57, there is not a link to State Pension age and future changes to State Pension age.

The previous government had a stated policy of thinking the minimum pension age should be 10 years lower then State Pension age, but did not legislate for that. The current government has not stated a position on minimum pension age thus far.