Civil service pension transfer or not ?

alanco1515 · 20 May 2018 at 10:37PM

Hi All, thanks for reading my post
I have just left my Civil service job t join the fireservice , I now have final statement from civil service pension stating value and an offer from the new firefighters pension scheme 2015 if i transfered it to them, but am totally lost with what to do any advice would be much appreciated
figures as follows
civil service 2 parts
part 1( Premium pension ) value 17 years = £128,839 or £9697 PA paid at age 60
part 2 ( Alpha pension ) value 2 years = £17,923 or £1889 PA paid age 65
offer from fire service
total above = 16 years 223 days paying £10,586 PA payable at 60
I am currently 44 potential 16 more years
Hopefully this is enough info for some advice , or just where I should be looking , think i need to decide this month or offers expire,
Thanks in advance

Brynsam · 20 May 2018 at 11:57PM

Give TPAS a ring - they don't give financial advice but will be able to talk you through your options/help you to understand the heap of paperwork confronting you. Free, impartial and expert: https://www.pensionsadvisoryservice.org.uk/ask-us

Good luck in your new career!

hyubh · 21 May 2018 at 8:24AM

alanco1515 wrote: »

Hi All, thanks for reading my post
I have just left my Civil service job t join the fireservice

Support/back office role or firefighter...?

I now have final statement from civil service pension stating value and an offer from the new firefighters pension scheme 2015 if i transfered it to them

In general terms, assuming the gap between leaving the civil service and starting your new job is less than five years, the transfer would be on 'Club' terms. This means the final salary part of your civil service pension (i.e. the Premium part) would purchase a final salary service credit in your new scheme, without prejudice to whether you are now on a higher rate of pay or not. So, if you are earning more (if part time, look at whole-time equivalent pay), or are likely to have pay increases that beat inflation, transferring would seem a sensible thing to do.

The precise terms of the final salary benefits would be per the last final salary version of the FPS (= NFPS 2006). In a nutshell, the normal pension age is 60 for active members like Premium, but 65 for early leavers. The accrual rate is the same though (1/60 pension, no automatic lump sum).

The CARE benefits (i.e. the Alpha part) would likewise purchase a CARE benefit in the new scheme, though the 'revaluation rate' (i.e. the measure by which existing CARE benefits increase each year before retirement) would remain that of the old scheme (so, straight CPI in your case). Anything else would be per the new scheme, in particular the normal pension age, which for the FPS is 60 not state pension age for active members (if you left the FPS before retirement age, then the normal pension age would be the same as Alpha).

However... from what you've reported of the transfer-in quote, the final salary/CARE split is unclear - are you able to clarify...?

alanco1515 · 21 May 2018 at 10:41AM

Hi, thanks for your replies So far,
To answer a couple of questions,
I'll joined the fire service operational as a
Firefighter,
There was no gap, actually overlapped by 2 weeks,
The wage will be pretty much the same,
The new offer doesn't break down how the total figure was calculated, I assume it will be roughly the same as my civil service breakdown, as both final figures are similar,
Another thought is, is the civil service frozen as is therefore protected so not likely to change, or if I transfer into new fire fighter scheme , the government could decide to mess around with it some more ?
Thanks all

Silvertabby · 21 May 2018 at 12:20PM

alanco1515 wrote: »

Hi, thanks for your replies So far,
To answer a couple of questions,
I'll joined the fire service operational as a
Firefighter,
There was no gap, actually overlapped by 2 weeks,
The wage will be pretty much the same,
The new offer doesn't break down how the total figure was calculated, I assume it will be roughly the same as my civil service breakdown, as both final figures are similar,
Another thought is, is the civil service frozen as is therefore protected so not likely to change, or if I transfer into new fire fighter scheme , the government could decide to mess around with it some more ?
Thanks all

If you leave your Civil Service pension where it is (deferred, not frozen) it will increase in value each year in line with CPI inflation. I'm not going to stick my neck out and say that any further changes to the Civil Service pension scheme won't be made retrospective, but it's highly unlikely.

If you transfer, then the final salary part of your combined pension will increase in line with your salary - which may or may not be CPI.

Will you definitely retire at 60 - or might you transfer to a less active role within the Fire Service? If so, then leaving your Civil Service pension where it is would mean that you could draw those benefits while still working and contributing to the Fire Service pension scheme.

It's real crystal ball stuff, I'm afraid.

My very best wishes to you in your new career.

alanco1515 · 21 May 2018 at 12:41PM

Thank you, I'm not sure when I will actually retire , guess I wont know till nearer the time, you can actually stay after 60 providing your still fit for duty !! pass medical each year, But im dont ruling out retiring a bit early, mortgage should be paid at age 53, so should be ok on that front.
I have asked the fire service for a break down of the final offer
Maybe it would be worth just transfering in the Alpha element if that is possible ? as this is age 65, then it would all end at the same time, is that an option do you think ?
thanks you guys are awesome :-)

hyubh · 21 May 2018 at 1:38PM

alanco1515 wrote: »

I have asked the fire service for a break down of the final offer

Good, because the split between final salary and CARE credits on the incoming scheme side is important. To be honest, I'm surprised the new administrators haven't quoted it, and if they really haven't, then they may well have made a mistake and not calculated the transfer correctly.

Maybe it would be worth just transfering in the Alpha element if that is possible ?

No, it's all or nothing unfortunately.

Civil service pension transfer or not ?

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