Civil Service Pension retirement planning

borodave_65

Hi there,
I'm a 60 year old civil servant with 38 years service and I'm trying to understand when/if I should take retirement (either partial or full). My current salary is about £62k but I'm one of the 2% of members who didn't receive an Annual Benefit Statement for last year which makes decision making very difficult...particularly as I'm being told by many colleagues that there's no point continuing in full time employment after 60. I was originally in Classic and moved to Alpha but obviously impacted by the remedy.
Is anyone able to provide any advice (MyCSP haven't been much help to date)?
Many thanks

katejo

borodave_65 said:

Hi there,
I'm a 60 year old civil servant with 38 years service and I'm trying to understand when/if I should take retirement (either partial or full). My current salary is about £62k but I'm one of the 2% of members who didn't receive an Annual Benefit Statement for last year which makes decision making very difficult...particularly as I'm being told by many colleagues that there's no point continuing in full time employment after 60. I was originally in Classic and moved to Alpha but obviously impacted by the remedy.
Is anyone able to provide any advice (MyCSP haven't been much help to date)?
Many thanks

I can't answer your query but have a couple of questions because I am going through the process of deciding when to take my DB pension. Why didn't 2% get an Annual Benefit statement? Seems odd. I get one every year. Why are your colleagues telling you that there is no point in continuing full time after 60? I am almost 62 and have already dropped to 4 days a week but my pension can't be taken until I stop work completely. 

borodave_65

MyCSP haven't explained what the problem is regarding the 2% of members who haven't received an ABS but had to report themselves to Cabinet Office for not fulfilling their obligation. My HR team have tried to establish what the problem is but can't find a pattern.
I'm trying to establish what's my best course of action...carry on full time; take partial retirement; take full retirement

hugheskevi

Explanation of 2% is at this link.

Your classic pension is payable without reduction from age 60. Presumably you have not claimed it, are not being paid it, and the amount of pension you could be receiving is simply being forfeited, is that correct? If so, that is why colleagues are saying you should take pension rather than work full time, as you are foregoing the pension you could be receiving.

The likely best course of action is partial-retirement, make your 2015 Remedy choice, put all of classic benefits into payment taking a standard lump sum payment (do not commute pension into more lump sum) and set part-time hours so as to avoid abatement.

Personal circumstances vary, so what is likely to be best in general may not be best for you personally.

katejo

hugheskevi said:

Explanation of 2% is at this link.

Your classic pension is payable without reduction from age 60. Presumably you have not claimed it, are not being paid it, and the amount of pension you could be receiving is simply being forfeited, is that correct? If so, that is why colleagues are saying you should take pension rather than work full time, as you are foregoing the pension you could be receiving.

The likely best course of action is partial-retirement, make your 2015 Remedy choice, put all of classic benefits into payment taking a standard lump sum payment (do not commute pension into more lump sum) and set part-time hours so as to avoid abatement.

Personal circumstances vary, so what is likely to be best in general may not be best for you personally.

My original final salary is payable without penalty from 60 but my scheme doesn't allow me to actually take it until I fully retire (apart from a few casual hours if I want them). If I did fully retire now, I would lose out on the career average parts of my pension which I am still paying into until I retire.

borodave_65

hugheskevi said:

Explanation of 2% is at this link.

Your classic pension is payable without reduction from age 60. Presumably you have not claimed it, are not being paid it, and the amount of pension you could be receiving is simply being forfeited, is that correct? If so, that is why colleagues are saying you should take pension rather than work full time, as you are foregoing the pension you could be receiving.

The likely best course of action is partial-retirement, make your 2015 Remedy choice, put all of classic benefits into payment taking a standard lump sum payment (do not commute pension into more lump sum) and set part-time hours so as to avoid abatement.

Personal circumstances vary, so what is likely to be best in general may not be best for you personally.

That's correct. I haven't claimed it and I'm not receiving it. I think I'll investigate the partial retirement option. Many thanks

indiasign

Which scheme are you in, katejo?

I’m sure both Premium and Classic allow you to partially retire and take that part of your pension at 60, while still continuing to work and pay into Alpha.

katejo

indiasign said:

Which scheme are you in, katejo?

I’m sure both Premium and Classic allow you to partially retire and take that part of your pension at 60, while still continuing to work and pay into Alpha.

Mine isn't civil service. It is SAUL. USS allows flexible retirement but SAUL doesn't.