Civil Service Pension

A question about : Civil Service Pension

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Hello,

I am 28 yrs old, female and have just joined the Civil Service 'Premium' pension scheme, which no longer offers a lump sum on completion, and works on 1/60 contributions. I have about 5yrs worth of my old NHS pension scheme stored. I have the following questions:

:confused: Should I transfer my NHS contributions in to my new civil service pension, which I understand I can do as part of the Public Sector Transfer Club (I am tempted to do this as I feel that the benefits of leaving a 5yr pension are few...?)

:confused: What can I do to save / plan to get a lump sum for retirement - what are the best schemes or plans in order to achieve a little nest egg for retirement - which to be honest I was looking forward to from when I was in the NHS - drat the Civil Service for moving the goal posts!

:confused: What can I do to top up my Civil Sevice Pension - as I have no intention of working until I am 60 (or even 65 as it looks like it is going to be, yuk), and want a decent pension on which to retire.

Any advice would be most gratefully received,

Luis.

Best answers:

• The "premium" version still allows a tax free lump sum in the same way the "classic" version does.
  1 - Transferring depends on what you lose against what you gain. On similar "Govt" based schemes, there can still be differences so you need to find out what the old one will offer, then pass that info to the new scheme to see what they offer. Whichever is higher....
  2 & 3- added years within the scheme is almost certainly the best option now that you know lump sum is available.
  Remember that you do not get the state pension until age 65 and there is no SERPS/S2P or contracted in/out benefits either. So if you want to stop early, you will need to fund that gap.
• Luis,
  As DustonH said, but also bear in mind the changes to be inplimented in 2013, for current CS employees. You may gain more / less from this, so it is also worth considering.
• Further information on your options here:
  www.civilservice-pensions.gov.uk
• Thanks to everyone for their help.
  The Premium scheme does offer a lump sum facility, but at a cost of giving up part of your pension - they take Ј1 off for every Ј12 taken as lump sum. Is this still a good deal, or should I be looking to find another way to save for a lump sum in order to spare my pension?
  Also - what is the best way to 'fund the gap' if I do retire earlier than I can take my pension?
  Eeeek - only 28 and already panicking about my pension!
  Thanks.
• Anyone able to help with last post?
  Sorry to mither
  Luis.
• Thanks to everyone - especially the patient Dunstonh!
  Thefirs - If I cycle the 47 miles each way to work I shall last about a week
  I shall now set about implementing everyone's helpful advice - thankyou again,
  Luis.
• Actually an even cheaper option would be to force Luis to cycle to work every day. After a week we wouldn't have to pay anything!
• Actually Pal, I contributed to my Civil Service pension, as all Civil Servants do, whilst at the same time earning less money than I would have got in the equivalent job in the private sector. Swings and roundabouts come to mind here. Talk to Admin Assistants and the like in the Civil Service who live on a pittance and then begrudge them the pittance they'll also get as a Civil Service pension.
• Yes, but the salary that you use to pay your contributions are paid for by our taxes as well...
  Believe it or not I was joking. Hence the
  I wouldn't really want Luis to kill herself cycling to work. Not unless it was going to save me a lot of tax...
• I have just got in from cycling to work on Sunday - I now weigh three stone, and had to turn around halfway home in order to get to work in time for 07:15 start Monday I am not in work again until 07:15 tomorrow, so having ironed my kit and made my butties, I am about to start off again!
  Seriously though, thanks to everyone. I am going to have to keep digging on this one - it looks as if they are making us all work until we are 60 (NOT happening), so I wonder if that means I would not be able to draw my pension before then even with early retirement. It seems the more I find out, the less I know
  I think they are stopping the final salary thing, and it is going to be based on your contributions over the length of your service. Going on my experience with the Civil Service so far, I expect to be getting about Ј3.90 a year - they still haven't actioned my contributions, despite me starting this new post September last year!
  To whoever it was who wrote about Admin Assistants, you have my full sympathy - my friend is an AA and the pay is pathetic. Even EO pay is feeble too.
  Regards to all,
  Luis.
  Now where did I put those cycle clips.................
• You should still be able to retire early after 55, but your pension will be substantially reduced, however this isn't really any change from before.
  Be glad that civil servants are only being "forced" to work to 60. Out in the "real world" most people will not be able to retire until 65 at the latest. No doubt the civil service will follow suit in due course.
  Still, if you are wealthy enough to be able to retire earlier than 60, then I am obviously paying too much in tax to support the hedonistic lifestyles of our civil servants. Perhaps I should insist that you run to work instead of cycling to cut down on the expense of puncture repair kits?
  p.s. If I were you I would be kicking off big time about your pension contributions not being taken. It is possible you are not actually in the scheme, and if you died (say, got squished by a lorry cycling to work) your family might not get the valuable death benefits that would be payable. I suggest you actively start writing or e-mailing your pensions and payroll people every day until this is sorted out.
• Pal - trust me, I have been kicking off HUGELY about it - however I might as well save my breath (for cycling) for in an institution as big as the one I work in I am easily overlooked and passed from pillar to post! Suffice to say, I don't even have a contract yet. I am sure that anyone who has ever worked in the civil service, and in particular the branch I work in will be nodding in recognition at this.
  The way in which I fund my hedonistic lifestyle involves working from 07:15 to 21:00 each day (added on leaving the house at 06:00 and not getting in til 22:00) - therefore ensuring I am always in work and never out of work in shopping hours!
  I think I will look into AVCs as suggested - I am afraid I am a bit of a boring old Hector in that I would rather plan and economise now in order to enjoy the free time I may have when I retire and enjoy life - if I don't burn out before then
  Luis.
• Does anyone know what is happening to these pensions now? I hear plans have been shelved due to threatened industrial action........?
• The industrial action that was due to take place yesterday was called off after the government agreed to enter into negotiations over these pension changes.