Civil Service Pension - Leaving Early

DE_612183

Hi, wonder if anyone know the answer to this, the CSP site is a bit vague.

I know that if I leave the scheme with less than two years service I can get a refund or transfer out, and that if I leave with more than two years the sute says 

"As you have qualified for a pension, you cannot have a refund of your contributions. However, you may be able to transfer out your preserved pension (to a qualifying scheme) at a later date. We are unable to transfer benefits to a defined contribution arrangement if you have qualified for a pension."

I presume that means that I can transfer it into a stakeholder pension - something like Nest ( or is Nest a DC scheme? ).

QrizB

DE_612183 said:

I presume that means that I can transfer it into a stakeholder pension - something like Nest ( or is Nest a DC scheme? ).

Nest is a DC scheme.

It isn't a stakeholder pension.

Dazed_and_C0nfused

DE_612183 said:

Hi, wonder if anyone know the answer to this, the CSP site is a bit vague.

I know that if I leave the scheme with less than two years service I can get a refund or transfer out, and that if I leave with more than two years the sute says 

"As you have qualified for a pension, you cannot have a refund of your contributions. However, you may be able to transfer out your preserved pension (to a qualifying scheme) at a later date. We are unable to transfer benefits to a defined contribution arrangement if you have qualified for a pension."

I presume that means that I can transfer it into a stakeholder pension - something like Nest ( or is Nest a DC scheme? ).

Nest, and stakeholder pensions, are DC schemes.

I suspect it means transfer to another public sector DB scheme.

If you were to leave before 2 years try everything you can to avoid a refund.  For 3 reasons, the refund is taxed and the tax isn't repayable (in any circumstances).  The refund is only of your contributions.  The employer contributions are lost.

A transfer out is the better option (financially) as you get to keep the employer contributions and there is no tax deducted from your contributions.

DE_612183

Thanks @Dazed_and_C0nfused - I'm 60 now and have worked for CS for jsut over a year - I was planning on leaving at about 2 years and taking the transfer -however it looks like now i will be there for possibly 2 and a half years - so when I'm about 62 - what I don't want is to the have to wait another 5 years to get the CSP - I'd much prefer to get a CETV and then take as draw down as and when I want.

I just want to make sure that's possible - if not I'll have to leave on 1 year 364 days!

hugheskevi

I was planning on leaving at about 2 years and taking the transfer -however it looks like now i will be there for possibly 2 and a half years - so when I'm about 62 - what I don't want is to the have to wait another 5 years to get the CSP - I'd much prefer to get a CETV and then take as draw down as and when I want.

I just want to make sure that's possible - if not I'll have to leave on 1 year 364 days!

You could switch to the Partnership scheme before you have 2 years in alpha to achieve this.

DE_612183

Ok, thanks for that - but what does the statement "However, you may be able to transfer out your preserved pension (to a qualifying scheme) at a later date. " - what qualifies as a qualifing scheme.

I've had a look at partnership and this says "If you have been a member of the Civil Service pension scheme for more than one month, you can switch to partnership (subject to eligibility) but your contributions will not be backdated."

So does that mean, that before ywo years I transfer - then take the CSTV from Alpha and move to Partnership, then carry on paying into partnership? 

Silvertabby

DE_612183 said:

Ok, thanks for that - but what does the statement "However, you may be able to transfer out your preserved pension (to a qualifying scheme) at a later date. " - what qualifies as a qualifing scheme.

I've had a look at partnership and this says "If you have been a member of the Civil Service pension scheme for more than one month, you can switch to partnership (subject to eligibility) but your contributions will not be backdated."

So does that mean, that before ywo years I transfer - then take the CSTV from Alpha and move to Partnership, then carry on paying into partnership? 

A 'qualifying scheme' is another DB (defined benefit) pension scheme.  There may be some private sector employers out there who still offer DB pensions to new joiners, but they must be as rare as hen's teeth.  So, realistically, you will only be able to transfer your vested CS pension to another public sector fund (Local Government, NHS, etc).

I'm not an expert on the CS scheme,  but what you are proposing sounds like a lot of faff for not much gain. Even if it is possible.  Over to those with more knowledge of the CS scheme........

hugheskevi

DE_612183 said:

I've had a look at partnership and this says "If you have been a member of the Civil Service pension scheme for more than one month, you can switch to partnership (subject to eligibility) but your contributions will not be backdated."

So does that mean, that before ywo years I transfer - then take the CSTV from Alpha and move to Partnership, then carry on paying into partnership? 

Yes, noting the notice period for switching is 2-3 months so take that into account. 

The sequencing would be switch to Partnership before 2 years, after which you will be offered a CETV. 

DE_612183

Silvertabby said:

DE_612183 said:

Ok, thanks for that - but what does the statement "However, you may be able to transfer out your preserved pension (to a qualifying scheme) at a later date. " - what qualifies as a qualifing scheme.

I've had a look at partnership and this says "If you have been a member of the Civil Service pension scheme for more than one month, you can switch to partnership (subject to eligibility) but your contributions will not be backdated."

So does that mean, that before ywo years I transfer - then take the CSTV from Alpha and move to Partnership, then carry on paying into partnership? 

A 'qualifying scheme' is another DB (defined benefit) pension scheme.  There may be some private sector employers out there who still offer DB pensions to new joiners, but they must be as rare as hen's teeth.  So, realistically, you will only be able to transfer your vested CS pension to another public sector fund (Local Government, NHS, etc).

I'm not an expert on the CS scheme,  but what you are proposing sounds like a lot of faff for not much gain. Even if it is possible.  Over to those with more knowledge of the CS scheme........

The gain is not having the pension locked in to when I'm 67 - as it's only a couple of years contributions I'd prefer to take it as a draw down now rather than wait and have a monthly amount which is not worth much until I die. 

DE_612183

hugheskevi said:

DE_612183 said:

I've had a look at partnership and this says "If you have been a member of the Civil Service pension scheme for more than one month, you can switch to partnership (subject to eligibility) but your contributions will not be backdated."

So does that mean, that before ywo years I transfer - then take the CSTV from Alpha and move to Partnership, then carry on paying into partnership? 

Yes, noting the notice period for switching is 2-3 months so take that into account. 

The sequencing would be switch to Partnership before 2 years, after which you will be offered a CETV. 

Thats great - thanks@hugheskevi

marky_b_2

DE_612183 said:

Thanks @Dazed_and_C0nfused - I'm 60 now and have worked for CS for jsut over a year - I was planning on leaving at about 2 years and taking the transfer -however it looks like now i will be there for possibly 2 and a half years - so when I'm about 62 - what I don't want is to the have to wait another 5 years to get the CSP - I'd much prefer to get a CETV and then take as draw down as and when I want.

I just want to make sure that's possible - if not I'll have to leave on 1 year 364 days!

You can take Alpha before State pension age but it will be reduced for taking it early