Understand a CS ABS

monaebrook

So, I am in the hideous position of having to rethink everything because of the law change in 2028. OH and I are both CS, he is 5 years older than me and we planned to retire at the same time - him at 60 me at 55. 
The law changes 6 months before I turn 55 so I'm not able to get my pension for another 2 years..   Both of us are now weighing it all up to see if we can just push the button in April. 
To know if that's a goer, can someone help explain the ABS. Do the figures I have on my latest statement show what I would get if I stopped paying now? Or is there something else I need to take into account? Would still want to take it ASAP, so 57.
Thanks in advance, need to unpick the level of risk.

hara____

Which type of civil service pension do you have?

The change in pension age to 57 is for defined contribution pensions, not defined benefit civil service pensions like Classic, Premium, Alpha

Marcon

hara____ said:

Which type of civil service pension do you have?

The change in pension age to 57 is for defined contribution pensions, not defined benefit civil service pensions like Classic, Premium, Alpha

The minimum age of 57 applies from April 2028 to all types of pension scheme, not just defined contribution.  Earlier access may be possible where a scheme has a 'protected pension age' below 57.

xylophone

The change in pension age to 57 is for defined contribution pensions, not defined benefit civil service pensions like Classic, Premium, Alpha

https://commonslibrary.parliament.uk/research-briefings/sn05847/#:~:text=Since April 2010, the NMPA,from the state pension age.

https://www.gov.uk/government/publications/increasing-normal-minimum-pension-age/increasing-normal-minimum-pension-age

Who is likely to be affected

Individual members of registered pension schemes who do not have a protected pension age but take scheme benefits before age 57 after 5 April 2028 or those who would like to have taken a benefit but will not be able to. However, members of the firefighters, police and armed forces public service schemes will not be affected by this increase.

Scheme administrators of registered pension schemes will need to modify their systems to accommodate for these changes.

https://commonslibrary.parliament.uk/research-briefings/sn05847/#:~:text=Since April 2010, the NMPA,from the state pension age.

Increase to age 57

From 6 April 2028, the NMPA will increase to 57. This change, made by the Finance Act 2022, will not apply to the public service pension schemes for the armed forces, police, and firefighters.

People who were members of a scheme on 3 November 2021 with an unqualified right to take a pension before age 57 will keep this right. Additionally, those who previously had a protected pension age below 55 will keep it.

monaebrook

Thanks for replies but I still don't understand. I'm an MOD CS in Alpha, pre 2021. Does that mean I have an unqualified right to take my pension at 55? I do know it would be reduced. This is such a crucial piece of information for my planning, I need to get it right!

Marcon

monaebrook said:

So, I am in the hideous position of having to rethink everything because of the law change in 2028. OH and I are both CS, he is 5 years older than me and we planned to retire at the same time - him at 60 me at 55. 
The law changes 6 months before I turn 55 so I'm not able to get my pension for another 2 years..   Both of us are now weighing it all up to see if we can just push the button in April. 
To know if that's a goer, can someone help explain the ABS. Do the figures I have on my latest statement show what I would get if I stopped paying now? Or is there something else I need to take into account? Would still want to take it ASAP, so 57.
Thanks in advance, need to unpick the level of risk.

'Hideous position'? Really? This planned change was first announced in 2014, so you've had plenty of time to prepare...

xylophone

To know if that's a goer, can someone help explain the ABS.

https://www.civilservicepensionscheme.org.uk/news/podcast-a-guide-to-your-annual-benefit-statement/ might help.

monaebrook

Agreed, and I thought I was prepared. It only became an issue recently when I need to look at going even earlier to look after elderly parents and need to plug the gap for longer. That's why it matters now.

hugheskevi

I'm an MOD CS in Alpha, pre 2021. Does that mean I have an unqualified right to take my pension at 55? 

As you joined before November 2021 and had an unqualified right to take your pension at age 55 as at November 2021, you will have a protected pension age and will be able to draw your alpha pension from age 55 if you wish.

To know if that's a goer, can someone help explain the ABS. Do the figures I have on my latest statement show what I would get if I stopped paying now? Or is there something else I need to take into account? 

The figures on your ABS, which is as at 31st March 2025 and include revaluation for 2025, can be read as what you would receive in real terms if you had left service on 31st March 2025, left your alpha pension deferred, and then commenced your alpha pension at your State Pension age of 67

hara____

Thanks Marcon, xylophone for the correction/details. I was assuming the OP had been a civil servant long enough not to be affected but agree that was assuming too much.

hara____

@monaebrook can you confirm that you have only ever been a member of Alpha, i.e. you weren't a civil servant before 2015? Only because the statements get more complicated if you also have past service under schemes like Premium