early retirement reduction factors CS pension scheme - different for active/deferred members?

pensionpickle

I have a mix of Alpha and Nuvos pension - thinking of leaving the CS next year after 17 years.  Checking my account and MyCSP doesn't have the retirement modeller on it any more?  From memory it would be more advantageous for me to take Nuvos/Option A but I am still working things through. 

Are there any differences in the early retirement reduction factors in Nuvos/Alpha when starting to claim from active service, as opposed to leaving work then claiming does anyone know?  I'd be looking to claim from 57/58. I have another DB pension already in payment for immediate spending too. Thanks! 

hugheskevi

The same factors are used regardless of active or deferred. The factors themselves may change between leaving work and commencing pension.

Unless you leave on ill-health or death, nuvos will be better than alpha for you.

pensionpickle

hugheskevi said:

The same factors are used regardless of active or deferred. The factors themselves may change between leaving work and commencing pension.

Unless you leave on ill-health or death, nuvos will be better than alpha for you.

thanks v much for your quick answer - I was just now looking at some of your advice re factors on another thread, apologies as you have already answered the above as my advance search skills are not great!  One other thing, I am currently off sick due to a major op which may impact how I can perform in my role, I am not sure if ill health retirement is a possibility though as my line manager has not mentioned and my sick note runs out soon. Would alpha be better in this scenario?  (After 6 months my pay reduces to 50%, as both schemes are career average not final salary I assume there is no difference?)

hugheskevi

If you exit under ill-health, alpha will be better than nuvos. 

However, if the exit was under lower-tier ill-health the difference would be very small (maybe tens of pounds a year). Whereas if it is was upper-tier ill-health the difference would be more significant.

pensionpickle

I've now got my ABS which has raised one more query for me too!  I am currently on sick leave after a few operations and thinking of my options -  could leave CS (if I don't apply for ill health retirement) either by simply resigning and claiming my pension at a later date (maybe next year or two, presumably the early payment reduction factor would be less then), or by formally going through the retirement process and putting pension into payment straight away afterwards.  I've been told the latter would take over 4 months but if I resign i only have to give 1 month notice.  However it looks as if the survivor's death benefits are worse if I leave without putting pension into payment for Alpha?  Maybe for Nuvos too - the ABS is a bit unclear on this? Does anyone have any info on this?

hugheskevi

it looks as if the survivor's death benefits are worse if I leave without putting pension into payment for Alpha?  Maybe for Nuvos too - the ABS is a bit unclear on this? Does anyone have any info on this?

Death benefits for non-active members consist of a lump sum reflecting 5 years of pension payments less any monies received and an on-going survivor pension.

The survivor pension is unaffected by date of pension commencement and lump sum decision.

pensionpickle

hugheskevi said:

it looks as if the survivor's death benefits are worse if I leave without putting pension into payment for Alpha?  Maybe for Nuvos too - the ABS is a bit unclear on this? Does anyone have any info on this?

Death benefits for non-active members consist of a lump sum reflecting 5 years of pension payments less any monies received and an on-going survivor pension.

The survivor pension is unaffected by date of pension commencement and lump sum decision.

Thanks for your (as always) knowledgeable and helpful response!  Am tempted to go after my next birthday now

pensionpickle

pensionpickle said:

hugheskevi said:

it looks as if the survivor's death benefits are worse if I leave without putting pension into payment for Alpha?  Maybe for Nuvos too - the ABS is a bit unclear on this? Does anyone have any info on this?

Death benefits for non-active members consist of a lump sum reflecting 5 years of pension payments less any monies received and an on-going survivor pension.

The survivor pension is unaffected by date of pension commencement and lump sum decision.

Thanks for your (as always) knowledgeable and helpful response!  Am tempted to go after my next birthday now

Still looking into this - one question I have tried to get an answer through MyCSP before potentially notifying my retirement (with little success getting though as ever!):
how do the  CSP age reduction factors work  for leaving as the modeller seems to only deal in whole years?  For example, say my next birthday was 25/12, if I left on 24/12 would that make a huge difference compared to final leaving date of  26/12, or is the final pension calculation more nuanced than that. taking account of days/months of age rather than full years?  

hugheskevi

pensionpickle said:

pensionpickle said:

hugheskevi said:

it looks as if the survivor's death benefits are worse if I leave without putting pension into payment for Alpha?  Maybe for Nuvos too - the ABS is a bit unclear on this? Does anyone have any info on this?

Death benefits for non-active members consist of a lump sum reflecting 5 years of pension payments less any monies received and an on-going survivor pension.

The survivor pension is unaffected by date of pension commencement and lump sum decision.

Thanks for your (as always) knowledgeable and helpful response!  Am tempted to go after my next birthday now

how do the  CSP age reduction factors work  for leaving as the modeller seems to only deal in whole years?  For example, say my next birthday was 25/12, if I left on 24/12 would that make a huge difference compared to final leaving date of  26/12, or is the final pension calculation more nuanced than that. taking account of days/months of age rather than full years?  

Reductions are based on the number of years and months left to Normal Pension age.

Full details are available in the documents on this page.

pensionpickle

hugheskevi said:

pensionpickle said:

pensionpickle said:

hugheskevi said:

it looks as if the survivor's death benefits are worse if I leave without putting pension into payment for Alpha?  Maybe for Nuvos too - the ABS is a bit unclear on this? Does anyone have any info on this?

Death benefits for non-active members consist of a lump sum reflecting 5 years of pension payments less any monies received and an on-going survivor pension.

The survivor pension is unaffected by date of pension commencement and lump sum decision.

Thanks for your (as always) knowledgeable and helpful response!  Am tempted to go after my next birthday now

how do the  CSP age reduction factors work  for leaving as the modeller seems to only deal in whole years?  For example, say my next birthday was 25/12, if I left on 24/12 would that make a huge difference compared to final leaving date of  26/12, or is the final pension calculation more nuanced than that. taking account of days/months of age rather than full years?  

Reductions are based on the number of years and months left to Normal Pension age.

Full details are available in the documents on this page.

thanks for the link and your helpful comments as always - that makes it a lot clearer with no cliff edge changes to be wary of. Nuvos seems to have a slightly more straightforward reduction factor calculation than some of the other schemes!

SimonSeys

pensionpickle said:

I've now got my ABS which has raised one more query for me too!  I am currently on sick leave after a few operations and thinking of my options -  could leave CS (if I don't apply for ill health retirement) either by simply resigning and claiming my pension at a later date (maybe next year or two, presumably the early payment reduction factor would be less then), or by formally going through the retirement process and putting pension into payment straight away afterwards.  I've been told the latter would take over 4 months but if I resign i only have to give 1 month notice.  However it looks as if the survivor's death benefits are worse if I leave without putting pension into payment for Alpha?  Maybe for Nuvos too - the ABS is a bit unclear on this? Does anyone have any info on this?

I don’t wish to pry.  But worth checking whether should be on sick leave or (paid) disability leave.  Had a case where someone with a cancer diagnosis was on sick leave when it should have been disability leave.