New Capita-run Civil Service Pension Scheme - problems (what a surprise!)

antonic

https://forums.moneysavingexpert.com/discussion/comment/81987633#Comment_81987633

You should get your lump sum on or around 30th May and your first Pension Payment should be on or around 30th June.

I retired on 2nd November and got my lump sum on 5th November 2025 and my monthly Pension Payments on the 2nd of each month.

Hope this helps

indiasign

This may just be my ignorance of previous CSP schemes (I’ve only been in Premium and Alpha), but I’m surprised to see so many people referring to taking a lump sum.

I was always under the impression that the commutation rate was pretty poor, and the received wisdom was that you were better off opting for no lump sum, and maximising your monthly pension.

Just interested in whether there are schemes where the lump sum is non-negotiable, and you get it regardless, or is it that people have just earmarked the lump sum for immediate post-retirement expenses? 🙂

johnnyfreedosh

Classic pension scheme has an automatic lump sum built in.

indiasign

https://forums.moneysavingexpert.com/discussion/comment/81987967#Comment_81987967

Ah, that explains it! Thanks 🙂

hugheskevi

I was always under the impression that the commutation rate was pretty poor, and the received wisdom was that you were better off opting for no lump sum, and maximising your monthly pension.

That is all correct in the majority of cases, but scheme experience data (see slides 29-34 of the Scheme Valuation assumptions) is that 80% of the maximum possible lump sum is taken. I understand that most either take no lump sum or maximum lump sum with very little in between.

So 4 out of 5 members are choosing to take maximum lump sum, despite it being a financially questionable decision for many.

Note that many people retiring now will have classic pension, with Premium opening in 2002, so only those who joined after about the age of 35 will be retiring with pension other than Classic and a bit of alpha.

Just interested in whether there are schemes where the lump sum is non-negotiable, and you get it regardless, or is it that people have just earmarked the lump sum for immediate post-retirement expenses? 🙂

Even in classic the automatic lump sum can be inversely commuted into pension. However, that commutation rate is set on an actuarial basis, so is considerly higher than commuting pension into lump sum (proably something like 19:1 depending on age for inverse commutation, compared to 12:1 for normal commutation).

johnnyfreedosh

https://forums.moneysavingexpert.com/discussion/comment/81988070#Comment_81988070

Very interesting. I personally took the min lump sum and max pension but colleagues I worked with who retired before and just after me all opted for Max lump sum.

Obviously individual circumstances dictate

katejo

https://forums.moneysavingexpert.com/discussion/comment/81987828#Comment_81987828

That's not what I have been told. My pension is a different scheme, not Civil Service. I have actually received my lump sum today, just a month after requesting it. I really feel for everyone tied up in this. I read a comment from someone yesterday who is already 66 but is getting nowhere with her pension provider.

Diaz09

Absolutely agree this sounds like a typical Capita mess. One thing worth doing immediately is taking screenshots or printing off any correspondence you receive showing incorrect service records - I learned this the hard way with a previous pension transfer. If there are discrepancies now, they'll likely get worse before they get better, and having that paper trail becomes crucial when you're trying to prove what your actual entitlement should be later on.

katejo

https://forums.moneysavingexpert.com/discussion/comment/81988115#Comment_81988115

My letter from SAUL offered 3 different options namely zero lump sum, mid range figure and max figure but all members have the option to adjust it to the size of lump sum/monthly income wanted. I did an adjustment and reduced my lump sum to a figure between zero and mid range. I was very surprised to hear that hardly anyone actually does this! I had used the commutation factor of 18 to calculate the best option.

jamesh8

https://forums.moneysavingexpert.com/discussion/comment/81987215#Comment_81987215

Good stuff, particularly that things are finally happening. I’m hoping that means I will receive mine on 1 June.