Classic CS Pension & Abatement

Lucy3289

Would be grateful for any advice re abatement from the very knowledgeable people on here. I can't seem to find the answers elsewhere.  

I have been a member of Classic since 1988, then transferred to Alpha. 

I am in the rare situation of my highest earnings being in the past (the highest being November 2016). From December 16, i had a break in service (1 year  mat leave followed by a 5 year career break).

I returned to the CS in November 22 part time on a much reduced salary. 

Classic i think uses a '91 day step back' rule to calculate the pensionable earnings to find the best of the last 3 years. 

If the 2016 higher salary is the salary of reference, would abatement therefore not be applied? 

In theory, I would be earning more once partially retired than I am now. 

hugheskevi

I have been a member of Classic since 1988, then transferred to Alpha. 

I am in the rare situation of my highest earnings being in the past (the highest being November 2016). From December 16, i had a break in service (1 year  mat leave followed by a 5 year career break).

I returned to the CS in November 22 part time on a much reduced salary.

Classic final pensionable earnings are usually based only on last 3 years of FTE final pensionable earnings. This makes it essential that you are absolutely certain about how your final pensionable earnings will be calculated when you commence your classic benefits.

Maternity leave and a 5 year career break does not sound like a break of service. It sounds more like a period of active service possibly initially based on assumed pay (during the maternity period) and then based on zero earnings during the unpaid leave. It does not sound like a deferred award was created?

There is protection for downgrading in classic final pensionable earnings calculation - do you know if this applies to you?

For avoidance of doubt, when you say you returned on a much reduced salary, you do mean a much lower FTE salary? ie not just a lower take home salary due to working part-time, but at a similar salary level?

Lucy3289 said:

Classic i think uses a '91 day step back' rule to calculate the pensionable earnings to find the best of the last 3 years. 

If the 2016 higher salary is the salary of reference, would abatement therefore not be applied? 

In theory, I would be earning more once partially retired than I am now. 

The salary of reference is usually whatever the final pensionable earnings figure is, which is determined by the things mentioned above.

Lucy3289

hugheskevi said:

I have been a member of Classic since 1988, then transferred to Alpha. 

I am in the rare situation of my highest earnings being in the past (the highest being November 2016). From December 16, i had a break in service (1 year  mat leave followed by a 5 year career break).

I returned to the CS in November 22 part time on a much reduced salary.

Classic final pensionable earnings are usually based only on last 3 years of FTE final pensionable earnings. This makes it essential that you are absolutely certain about how your final pensionable earnings will be calculated when you commence your classic benefits.

Maternity leave and a 5 year career break does not sound like a break of service. It sounds more like a period of active service possibly initially based on assumed pay (during the maternity period) and then based on zero earnings during the unpaid leave. It does not sound like a deferred award was created?

There is protection for downgrading in classic final pensionable earnings calculation - do you know if this applies to you?

For avoidance of doubt, when you say you returned on a much reduced salary, you do mean a much lower FTE salary? ie not just a lower take home salary due to working part-time, but at a similar salary level?

Lucy3289 said:

Classic i think uses a '91 day step back' rule to calculate the pensionable earnings to find the best of the last 3 years. 

If the 2016 higher salary is the salary of reference, would abatement therefore not be applied? 

In theory, I would be earning more once partially retired than I am now. 

The salary of reference is usually whatever the final pensionable earnings figure is, which is determined by the things mentioned above.

Thanks so much for your reply and apologies for the long delay in responding. 

1. My pensionable earnings , as shown in the partial retirement quotation, are stated to be last 12 months of reckonable service. These seem to be the FTE. 

2. I returned to work in November 22, shortly before the end of 5 years,  so the career break didn't create a deferred award.

3. I returned on the same grade, just much lower hours as I reduced from 30 hours to 20 hours on a part year basis. As such I don't think protection from downgrading would apply?

4. My main concern is the issue of salary of reference for abatement.

The partial retirement calculator states if you are part time to enter last 12 months pensionable pay. However, there's also a drop down that states your highest pay may not be in the last 12 months.

My highest part time pensionable pay was October 2017, which is within 3 years of active service, if the 5 year career break is discounted. 

My CSP have said, for the abatement calculation,  the SoR is the pensionable earnings figure, as shown on the PR  quotation. 

When I called back they said its the last 12 months of part time pensionable pay. If I use this figure it results in an abatement of over £4000. It seems that until a finalisation statement is received,  there's no way of knowing if abatement will apply.