1. Thinking about retirement?
A presentation for Civil Service pension scheme members thinking about retirement
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2. Presentation topics
We have separate slides covering the following areas:
When can I claim my Civil Service and State pensions?
When to retire: can I afford it?
Can I retire early?
What are my choices at pension age?
How much pension will I get?
How do I claim my pension?
This presentation will give you a brief overview and answer some of the questions you may have.
The handouts you have been given contain much more detailed information than I will be covering.
If you need more information you can visit the civil service website at or contact HR or your pensions administrator. There is a list of sources of information in your handouts
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3. Presentation topics What options do I have? How is my pension paid?
Will my pension change?
What happens if I get another job?
What happens to my pension after my death?
Useful sources of information
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4. When can I claim my State pension?
Date of birth
State Pension Age
Women
Men
57+ 60 66
48 + 65 67
Under 30 68
This slide is give you an overview of the State pension. You will get more details from the session run by Department for works and pensions.
In his Autumn Statement, on 29 November 2011, the Chancellor announced that the State Pension age will now increase to 67 between 2026 and The government said it took this decision because of increasing life expectancy, to help manage the cost of State Pensions
Your handouts give details of how to get a State Pension forecast – you will need to contact the Pension Service
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5. When can I claim my Civil Service pension?
Pension age
Earliest age at which you can choose to leave and receive immediate payment of scheme pension without it being reduced
Age 60 years for classic, classic plus and premium
Age 65 years for nuvos
The earliest age that you can claim your pension without it being reduced depends on which scheme you are in.
Note: it could be earlier for pre-fresh start prison officers and some with overseas service
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6. When to retire: can I afford it?
Civil Service pension
Could be reduced
Tested against Lifetime allowance
Basic State pension
No State Second Pension
Civil service pension
Your Civil Service Pension could be reduced. If you decided to take partial retirement or allocate some of your pension to your dependents your pension will be affected. In these 2 cases you must make these decisions before you retire
Your pension will be tested against your lifetime allowance (LTA) by you’re My CSP PSC – see booklet ‘Your pensions and tax’.
Basic State pension
To find out about State Pension benefits and Pension Credit visit the Pensions Service website at or ring
No State Second Pension
The Civil Service Pension Scheme is contracted out, so on retirement you will not receive a state second pension but you may be eligible for a top-up payment
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7. When to retire: can I afford it?
Top ups:
Civil Service Schemes
added pension
Civil Service Additional Voluntary Contributions (CSAVC)
Added Years
Designated stakeholder
Other:
Pension Credit
If you have bought AVCs you will need to contact the provider you invested with. Any Added years or added pension will be shown on your annual benefit statement and paid with your pension.
Standard Life is the designated stakeholder provider for the Civil Service and you will need to contact their helpline on
To find out about pension credit visit the pension service website or telephone
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8. Can I leave and take my pension early?
Actuarially Reduced Retirement
You can apply to take your pension any time after age 50
Not until 55 if you joined on or after 6 April 2006
It will be reduced by 5.25% for each year before pension age
Actuarial reduced retirement allows you to leave and take your pension early. You can apply to take this any time after age 50, if you joined the Civil Service before 6 April 2006 or 55 if you joined after this date.
You need to understand that this will affect the amount of pension that you would have received if you had left at pension age.
Members of partnership can take their pension any time after 50(55) whether they leave or not.
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9. What are my choices at pension age?
Carry on working
Leave and take my pension
Leave and not take my pension
Partial retirement
You may work past your pension age of 60 (classic, classic plus, premium) or 65 in nuvos but you will need to discuss this with your employer.
Partial retirement is discussed on the next slide
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10. What are my choices at pension age?
Partial retirement
You can only take partial retirement with the approval of your employer
You need to understand that there will be an impact on your income now and in the future
Read member booklet on partial retirement
Use calculator on the Civil Service pensions website
Discuss with line manager/HR
Partial retirement is a scheme that allows members in certain circumstances to draw part of their pension while remaining in the Civil Service
Your pensionable pay mustl be reduced by 20% at least
There must be a business need – at employers discretion.
You must read the booklet on partial retirement and complete the form in the booklet – partial retirement is detailed in your handouts
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11. How much pension will I get?
Annual benefit statements
How are they worked out?
Annual pension and possibly tax-free lump sum
Refund of classic and classic plus contributions if you remain single
Annual benefit statements
You should receive a regular annual benefit statement from your pensions administrator, contact them if you have not received one.
Your annual benefit statement will show your final pensionable earnings (pensionable earnings in classic) and your reckonable service. In nuvos this will show only your reckonable service.
Reckonable service is the number of years and days that count towards your pension. Pensionable earnings are all the earnings that count towards your pension.
Your handouts contain an example of how your benefits are worked out.
Refund of contributions
If you are in classic or classic plus and remain unmarried/not in a civil partnership during your career your widows/widowers/civil partners contributions (WPS) will be refunded.
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12. How do I claim my pension?
Decide when you want to retire
Give as much notice to line manager and HR as possible (minimum of 3 months)
MyCSP PSC will send personal details form (PDF) to you
Complete personal details form accurately
Return personal details form promptly to MyCSP PSC
It is important that you discuss your plans with your line manager, and give your HR and your MyCSP PSC as much warning as possible. .
It is very important that you complete the personal details form that is sent to you by your MyCSP PSC accurately and return as quickly as possible.
The payment of your lump sum and pension will be delayed if you don’t complete and return the personal details form. Your MyCSP PSC can not proceed with your award without this information.
Your pension is paid into your bank or building society as you direct on your pdf
You must put on your pdf any other pensions arrangements you have already taken or are about to take.
Your MyCSP PSC will check your figures to ensure that they fall within your LTA.
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13. What options do I have? Give up pension for tax-free lump sum
Note: more lump sum = less pension
Allocate some pension for dependants
Give up some of your automatic lump sum for more pension (classic only) for:
Self
Widow/widower/civil partner
Defer payment of pension (nuvos only)
You can talk to your MyCSP PSC about any of these options.
You will find booklets on the Civil Service pensions website at under publications rules and forms that cover these options.
Give up pension for tax-free lump sum
If you wish to give up some of your pension for a tax free lump sum you will need to make this decision before you retire.
Allocation
You need to be aware that time limits apply to allocation and there are also limits on how much you can allocate. The beneficiary must be financially wholly or mainly dependent on you, or you and the beneficiary must be financially interdependent.
You must apply for allocation before you reach full retirement.
Speak to your pensions administrator if you are interested in allocation.
Give up automatic lump sum for more pension
In classic you have the option of giving up some of your automatic lump sum to provide for more pension for yourself or your widow/widower/civil partner.
Defer payment
In nuvos you may defer taking your pension; however you must claim your pension before your 75th birthday, whether or not you are still working. If you draw your pension later than age 65 it will be increased to reflect the late payment.
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14. How is my pension paid? Pensioner payroll provider is Capita Hartshead
Newsletter and advice of payment sent annually
Capita Hartshead are your pensioner payroll provider and they will pay your lump sum as soon as possible after your last day of service.
They will send you a pay advice to let you know when they will start paying your monthly pension and which day of the month.
Once you retire Capita Hartshead will send you an annual newsletter along with a Certificate of Pay and Income Tax (P60) and advice of payment.
If you are over 55 and your are receiving benefits you will receive an increase to your pension. Which will be based on the retail price index.
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15. How is my pension paid?
Capita pay lump sum (if any) as soon as possible after last day of service.
Pension paid monthly in arrears on a date allocated by Capita
paid into your bank or building society nominated on your Personal Details Form
Can be an overseas bank if you will be living abroad
Your MyCSP PSC will instruct Capita to pay your pension and lump sum according to the information you provide on your PDF
You need to give plenty of notice and fill in and return your PDF promptly to your MyCSP PSC. This will help to ensure your pension and lump sum is paid promptly.
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16. Will my pension change? Pension may be revised after retirement
Could go up or down
Late pay award (up)
Changes to reckonable service (down)
National Insurance modification from State Pension age
Revised pension
Your pension is worked out by your MyCSP PSC on a set day and will not take into account any payments made to you after that date until your last day of service. After your retirement Capita will write to you letting you know about any changes to your pension.
Any revisions to your pension after retirement could make it go up or down. It would go up if subject to a late pay award that the MyCSP PSC could not take into account before you retired and down if there was a reduction in reckonable service.
National Insurance modification
If your reckonable service includes a period of time before 1 April 1980, Capita will reduce your pension once you reach State Pension age. This reduction is known as National Insurance Modification. Your reduced pension is then increased in line with inflation from your last day of service
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17. Will my pension change? Guaranteed Minimum Pension (GMP)
Consumer Price Index
Earmarking order
GMP
If you have reckonable service before 6 April 1997 you will have built up a GMP which must be paid as part of your pension. Your Civil Service pension will include an amount, but once you reach State Pension age the DWP will pay this to your State Pension and it will not be paid with your Civil Service pension.
CPI
Your pension payments are increased annually in line with the Consumer Price Index (CPI). Capita Hartshead will write to you each year and let you know what the increase will be.
Earmarking order
If you are divorced and the courts granted your former husband, wife or civil partner an earmarking order, this will come into effect on your retirement and your pension will be reduced.
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18. What happens to my pension if I get another job?
If re-employed within the the Civil Service
Abatement will apply (unless in partnership)
If employed outside the Civil Service
Civil Service pension is not affected
Abatement
As soon as you start a new job in the Civil Service you must let your HR unit know that you have a Civil Service pension. If your re-employed salary and pension combined is more than your salary at retirement, Capita will recalculate your pension and it will be reduced (abated). Your handout contains an example of this.
Outside the Civil Service
If you are re-employed outside the Civil Service your pension will not be affected.
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19. What happens to my pension after my death?
Important to keep death benefit nominations up to date
Death shortly after retirement
Depending on which scheme you are in nominee will get a the balance of your pension in the form of a lump sum
Pension for husband, wife, civil partner and children/(nominated partner (except classic)
Death benefit nomination form
If you wish to change your death benefit nomination form you can either download a form off the csp website or contact your MyCSP PSC. If you wish to change your nomination form after you retire contact your Capita Hartshead.
Death shortly after retirement
In classic if you die within 2 years of retirement your nominee will receive payment of 5 times your pension less any pension or lump sum already received.
If you are in classic plus and die within 5 years of retiring the pension will be in 2 parts (please see the classic plus retirement benefits booklet)
In premium and nuvos if you die within 5 years of drawing your pension then the balance of 5 years will be paid.
Dependants pension
On your death your husband/wife/civil partner will need to inform Capita who will then sort out your dependants pensions. The civil service pensions website has details of how dependants pensions are calculated
Your nominated partner is eligible only in classic plus/premium/nuvos and you must have registered a partner declaration form with you’re MyCSP PSC. No declaration, no pension.
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20. What happens to my pension after my death?
classic members
Widow, widower’s and civil partners pension may be lower if marriage or civil partnership takes place after retirement
Husband/wife/civil partner’s pension stops on re-marriage or new civil partnership
Overpayment
In a marriage or civil partnership only the legal husband, wife or civil partner is entitled to any benefits.
After your death if they should remarry, enter in to a civil partnership or live together with someone as a husband, wife or civil partner, the pension will be stopped. If this subsequent marriage/civil partnership comes to a end they may apply to Capita for restoration of the pension.
Overpayment
On your death your husband, wife or civil partner will need to inform Capita. If there is an overpayment of pension this will need to be recovered.
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21. Useful sources of information
MyCSP Pension Service Centre
Pensioner Payroll provider
Civil Service Pensions website
Booklet/leaflets
The Pensions Service
Your handout includes the name of your MyCSP Pension Service Centre.
Your pensioner payroll provider is Capita Hartshead – details are found in your handouts.
You will find copies of all the booklets on the Civil Service website
The Pensions Service will give you information on your state pension and pension credit.
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22. Any Questions?