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civil service pension

Hello
really need some help my partner retires in may
we have had the pension quotes from civil service and it says choose A or B for the remedy period
we have read a lot about that, but still on the modeller B has the highest lump sum at £51000 ? and higher pension so do we believe the figures on the first page? also is classic during the remedy period better than Alpha

but seperate paperwork included in the quote gives A as the better pension and higher lump sum so we are confused
as quote A states maximum lump sum £33000 and £6000 pension B states maximum lump sum £23000 pension £3600 are these figures on the seperate paperwork just to do with the McCloud remedy period? really confused? also is there a difference between maximum lump sum and
maximum lump sum allowed by HMRC ? and do you automaticaly get a lump sum sorry to ramble
but its all very hard to understand,I mean choose A or  B ? thats all what we understand,
Any help greatly appreciated


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Comments

  • DE_612183
    DE_612183 Posts: 3,619 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Which CSP does your husband have - there are a couple of schemes
  • steveblue10
    steveblue10 Posts: 8 Forumite
    Part of the Furniture First Post
    was in classic  2015 10 2002 now in Alpha
    thanks for the reply
  • steveblue10
    steveblue10 Posts: 8 Forumite
    Part of the Furniture First Post
    sorry that was wrong in Alpha now but was in classic for the remedy period i put the dates wrong

  • hugheskevi
    hugheskevi Posts: 4,471 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 24 March at 2:31PM
    we have had the pension quotes from civil service and it says choose A or B for the remedy period
    we have read a lot about that, but still on the modeller B has the highest lump sum at £51000 ? and higher pension so do we believe the figures on the first page?
    The modeler is an approximation based on simplified calculations of pension. Your retirement quote is a detailed calculation applying all scheme rules to calculate amount due for a specific retirement date. You should work with the retirement quote and ignore the modeller, past ABS, etc, unless you think an error has been made.
    Do you not have an expectation of the pension and lump sum you thought your partner would receive? Ideally calculated from your own records of service and salary, or if not, then based on past Annual Benefit Statements?
    also is classic during the remedy period better than Alpha
    This will be different for all members, sometimes classic will be better and sometimes alpha. 
    Usually there is very little difference unless there are unusual circumstances, eg, ill-health, paid exit with actuarial reduction to pension bought-out, etc.
    If a member only takes standard lump sum that will tend to favour alpha, a higher lump sum will favour classic.
    but seperate paperwork included in the quote gives A as the better pension and higher lump sum so we are confused as quote A states maximum lump sum £33000 and £6000 pension B states maximum lump sum £23000 pension £3600 are these figures on the seperate paperwork just to do with the McCloud remedy period?
    The figures are for whole service, not just Remedy period. There should not be such a large difference between the options. Either something has gone awry, you are reading the quote incorrectly, or your partner had a huge promotion sometime after 2015.
    I suspect you are only looking at one of the pension schemes in isolation, rather than the combined outcome from both schemes under the relevant option.
    also is there a difference between maximum lump sum and maximum lump sum allowed by HMRC ? and do you automaticaly get a lump sum
    The maximum lump sum shown on the quote is the maximum lump sum permitted under HRMC rules.
    Classic has an automatic lump sum, alpha does not.
  • steveblue10
    steveblue10 Posts: 8 Forumite
    Part of the Furniture First Post
    Thanks for the reply
    this is where we are confused  option A 20years 66 days service pension £6,604 pa, £20,000 total lump sum says this is your classic pension
    option B 13 years 66 days service £4,313 pa pension £12.941 this is your classic lump sum both are classic A and B ?
  • steveblue10
    steveblue10 Posts: 8 Forumite
    Part of the Furniture First Post
    Also on quote B you can commute some of your pension total sum availiable £21,183.00
    on A quote you can commute some of your pension totall sum availiable £32,270.00 ?
    its so hard to understand
  • steveblue10
    steveblue10 Posts: 8 Forumite
    Part of the Furniture First Post
    We have to choose A or B and have to return the forms by this friday they only give you 10 days from getting the quotes, ?
  • hugheskevi
    hugheskevi Posts: 4,471 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 24 March at 2:55PM
    Option A: Classic service to 2022, alpha thereafter
    Option B: Classic service to 2015, alpha thereafter
    Obviously under Option A the amount due from Classic is signficantly greater than under Option B. Equally, the amount of alpha due under Option A will be significantly less than the amount of alpha due under Option B.
    Work out the combined classic and alpha amounts due under each option and make your choice accordingly.
  • steveblue10
    steveblue10 Posts: 8 Forumite
    Part of the Furniture First Post
    Thanks for your help DWP do not help at all they just say you need to choose for the remedy period so are we
    choosing the final pension from these quotes, as a work mate said it is just for the McCloud remedy period
    that was as clear as mud,The modeller is rubbish as it points to option B with a maximum lump sum of £51000
    option A  now quoting maximum lump sum £47,000 i give up
    but thanks for your help
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