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Civil Service Pension

I work for the Met Police as a member of civil staff. I'm thinking of resigning at 54 but not claiming my classic pension until I'm 60. Does anybody know if my final salary will be based on my final year or the best year of my final three years. Is it based on the last 12 months of work or the last tax year?? I was temporarily promoted last year so had a good year but my salary for the next two years will be lower?? Thank you.

Comments

  • Brynsam
    Brynsam Posts: 3,643 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Combo Breaker
    See https://www.civilservicepensionscheme.org.uk/media/181386/ycppbe_apr16v1.pdf

    (relevant info is at the bottom of page 20/top of page 21).
  • hugheskevi
    hugheskevi Posts: 4,758 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The link above is to classic plus, which has a different final pay definition to classic.

    Unless your pensionable pay has actually fallen within the last 3 years, it will be based on last 12 calendar months.

    The 3 year test is (from memory, so may be slightly wrong) based on 3 month step-backs, ie, going back 3 months and looking at pay in the 12 months to that date, and repeating until the last 3 years are covered. Whatever the highest result from the step-backs is determines the final pay figure, which is then revalued by CPI to the current date.
  • capital0ne
    capital0ne Posts: 872 Forumite
    500 Posts Second Anniversary
    hugheskevi wrote: »
    The link above is to classic plus, which has a different final pay definition to classic.

    Unless your pensionable pay has actually fallen within the last 3 years, it will be based on last 12 calendar months.

    The 3 year test is (from memory, so may be slightly wrong) based on 3 month step-backs, ie, going back 3 months and looking at pay in the 12 months to that date, and repeating until the last 3 years are covered. Whatever the highest result from the step-backs is determines the final pay figure, which is then revalued by CPI to the current date.
    This is correct, I was in the Classic scheme, had temp promotion for a few months and that was used to calculate my FS pension amount - the temp promotion made a big difference. Good luck
  • jamesperrett
    jamesperrett Posts: 1,013 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    hugheskevi wrote: »
    The 3 year test is (from memory, so may be slightly wrong) based on 3 month step-backs, ie, going back 3 months and looking at pay in the 12 months to that date, and repeating until the last 3 years are covered. Whatever the highest result from the step-backs is determines the final pay figure, which is then revalued by CPI to the current date.

    That's pretty much right - one other thing to remember is that they count it from when the money was earned rather than when it was paid. You need to make sure that your proposed leaving date doesn't cause some of your temporary promotion period to be ignored thanks to the 3 month steps that hugheskevi mentions.
  • Shabbycat
    Shabbycat Posts: 75 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    Thanks very much. It will make big difference to my final salary. I just need to make that
    leap of faith, jump and start my own little business.
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