statement 2017 - civil service pension · pdf filepage 4 what is an annual benefit statement?...

A guide to your Annual Benefit

Statement 2017

classic members

Contents

About this guide

What is your Annual Benefit Statement?

Updating your details

Your benefits at a glance

Your personal details

Your death benefit nominees

Your scheme membership

Your pension and tax

Your classic benefits

Your additional classic benefits

Your projected benefits

Glossary

Further information

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About this guide

This guide is for members of classic.

Your Annual Benefit Statement is an important document. It is a summary of your Civil Service pension benefits up to the 31 March.

It includes your current death benefit nominee(s) and how much death benefit they could receive in the event of your death in service.

You should ensure that your employer holds up-to-date personal details for you, for example, your current salary or home address. If you think you need to update your personal information, you should contact your employer.

This guide accompanies your Annual Benefit Statement and we hope it helps you to get the most out of it. If you have any further queries that are not covered in this guide, further resources are available on the dedicated Annual Benefit Statement pages on our website: www.civilservicepensionscheme.org.uk/annual-benefit-statement

What is an Annual Benefit Statement?

Your Annual Benefit Statement is a summary of your Civil Service pension benefits up to 31 March 2017.

We produce your Annual Benefit Statement using information provided by your employer.Your statement includes your current death benefit nominee(s) and how much death benefit they could receive in the event of your death in service.

It contains your personal details and important information about tax rules that could affect your benefits. You should ensure that your employer holds up-to-date personal details for you, for example, your current home address.

Who receives an Annual Benefit Statement?

To receive an Annual Benefit Statement, you must meet the following eligibility criteria:

1. You are an active member or an active pensioner member; or

2. You were an active member or active pensioner member of either the Principal Civil Service Pension Scheme or alpha on 31 March 2017.

Your employer must also have provided a record of pension contributions (or pensionable earnings for members of alpha or nuvos) for the 2016/17 scheme year.

We will issue all statements (excluding those for secure members) directly to members’ home addresses. This complies with the Disclosure of Information Regulations for Occupational and Personal Pension Schemes, which requires that information is sent to your last known postal address.

Important: All of the figures shown on your Annual Benefit Statement are subject to rounding.

What is your Annual Benefit Statement?

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PERSONAL From: MyCSP Ltd PO Box 2017 Liverpool L69 2BU UK Tel: xxxx xxx xxxx Tel (Intl): +xxxxx xxxxxx Opening hours: xxxx xxx xxxx

Our ref: <Member No.> Date:

Your Annual Benefit Statement Dear Mrs Other Every year, we’ll send you a statement that shows the pension benefits you’ve built up so far in the Civil Service Pension arrangements, based on the latest information supplied by your employer. Reading your statement is an important step in understanding your pension benefits and how they are calculated. It is key that you read it in conjunction with the Important notes section at the end. But please remember, this statement is an illustration and not a guaranteed statement of entitlement. More information is available online – visit www.civilservicepensionscheme.org.uk/absfaq The Civil Service Pensions website is full of information to help you understand your benefits and make the most of the options available to you. There’s a section dedicated to Annual Benefit Statements where you’ll find the answers to frequently asked questions and a step-by-step guide that walks you through your statement. Do you have a query? Please read your statement carefully and check the information against your own records to make sure it’s correct. We have produced this statement using the latest information that we hold. If you have a query about or have recently changed your personal details (eg date of birth, National Insurance number, pensionable earnings, address, marital status) or if you think you’re in the wrong pension scheme please contact your employer through the normal route. If something needs changing, they will update your HR records and provide details to update your pension record. If your query is about pension information such as reckonable service, date joined, transfer-in history or additional benefits you have purchased, please email your query to [email protected] or post it to the above address. Don’t forget to include your name, date of birth and ‘Our ref’ from the start of this letter. Please note: If you’ve sent back a query or correction on your last statement, it may not have been possible to make your changes before this statement was produced. We have to work with your employer to confirm your information and any changes that you’ve asked us to make, and this can take some time. Once they have confirmed your details, we’ll send you a corrected statement, or a response to your query. Yours sincerely,

Debra Soper

For and on behalf of Civil Service Pensions www.civilservicepensionscheme.org.uk

Civil Service PensionsPO Box 2017LiverpoolL69 2BU

Your Annual Benefit Statement (ABS) gives you an opportunity to check your pension information.

If you have a query about your ABS, please read the Frequently Asked Questions in the dedicated ABS section on our website. www.civilservicepensionscheme.org.uk/annual-benefit-statement

If you still have a question about your ABS, you can do the following.

If your query is about your personal details, (for example marital status, date of birth, National Insurance, salary or address) contact your employer, who will update your pension record

If your query is about your pension scheme information (for example your employment history, reckonable service, date joined, transfer-in history, extra benefits) please let us know, by either:

Emailing your query to [email protected]

Writing to us at:


(Please include copies of any supporting documentation when contacting us.)

Calling us on: 0300 123 6666

Updating your details

@


Pension benefits can only be paid in line with the rules of the scheme. Your statement doesn’toverride them. You can read the rules of the scheme on the Civil Service Pensions website:www.civilservicepensionscheme.org.uk/about-us/scheme-rules

Your annual classic pensionThis is calculated based on your latest full-time equivalent salary and any pensionable allowances,bonuses and reckonable service we hold at the date of the statement. This also includes anytransferred in service, any Added Years and any Added Pension you’ve bought. It does notinclude any separate, preserved benefits you may have in the scheme from an earlier period ofemployment. Your classic benefits are payable unreduced from your classic Normal Pension Age,usually age 60. The figure shown also takes into account any pension debits that apply to you asa result of a Pension Sharing Order or Scheme Pays request if this has been fully implemented.

How your pension is worked outYour reckonable service is multiplied by your pensionable earnings and then divided by 80. Thisgives your pension amount. You will also get a standard lump sum of 3 x your pension.

Your standard lump sumThis shows your standard lump sum to which you are entitled when you retire. You may be ableto choose to exchange some pension for an additional lump sum. We will advise you of theadditional lump sum you can take at the time you claim your benefits. For each £12 of additionallump sum you take, your pension will be reduced by £1.

You can estimate your lump sum by using the calculator on the Civil Service Pensions website:www.civilservicepensionscheme.org.uk/members/member-calculators

The classic scheme guide (on the Civil Service Pensions website) contains information on howclassic survivor benefits are worked out.www.civilservicepensionscheme.org.uk/members/classic

Your death in service lump sumThis is the amount that may be payable to your nominee or personal representatives if you die inservice. This is worked out as 2 x your final pay on the date of your death.

Your total survivor’s pensionYour classic survivor’s annual pension can only be paid to your spouse or civil partner.

For more information about classic, please read the following guide on our website:www.civilservicepensionscheme.org.uk/members/publications

Your personal details Name:

Date of birth:

National Insurance number:


Statement as at: 31 March 2017 The value of your benefits in this statement are worked out up to the statement date shown above.

Your annual classic pension: £16,132

You’ll be able to claim your full classic pension from your normal pension age, usually age 60.

Your standard classic lump sum: £48,394 These amounts include any:

Transferred in service or pension. Previous periods of service you have opted to aggregate on re-joining. Added pension you’ve bought. Added years you’ve bought. Pension debits that have been applied from pension sharing orders.

These amounts do not include any:

Benefits from previous periods of service, unless you opted to aggregate your previous benefits on re-joining.

Additional Voluntary Contributions (AVCs). Your AVC provider will send you details of these separately.

Pension earmarking orders. These are applied when you take your benefits.

You can see a detailed breakdown of what is included in these figures in the ‘Your benefits’ section at the back of this statement.

Your death in service lump sum: £ XX This amount has been worked out as 2.0 times £ XX which is the actual pensionable earnings we held for you

at the date of the statement. If you are part-time, the figure shown will be the actual rate of pensionable earnings, not your full-time equivalent. The actual lump sum amount your nominee or estate could receive will be based on your final pay on the date of your death.

Your total survivor's annual pension: £ XX

Every effort has been made to ensure that this statement is accurate. It is based on the latest data that is held, but it is not a guarantee of your entitlement.

XX

XX

To find out what happens to your pension if you are getting divorced, read thefollowing guide: www.civilservicepensionscheme.org.uk/members/what-to-expect/if-you-are-getting-divorced

Your benefits at a glanceStatement as at: DD MMM YYY.

The value of your benefits in this statement are worked out up to the statement date shown above. There is a separate section ‘Your projected benefits’, that shows an estimate of what your benefits might be at ages 55, 60 and 65 assuming your working pattern does not change.

Your annual classic pension: £

You’ll be able to claim your full classic pension from your normal pension age, usually age 60.

Your standard classic lump sum: £

These amounts include any: Transferred in service or pension. Added pension you’ve bought. Added years you’ve bought. Pension debits that have been applied.

These amounts do not include any:

Benefits from previous separate periods of service. Additional Voluntary Contributions (AVCs). Your AVC provider

will send you details of these separately. Pension earmarking orders. These are applied when you take

your benefits.

You can see a detailed breakdown of what is included in these figures in the ‘Your benefits’ section further on in this statement.

Your death in service lump sum: £

This amount has been worked out as XX times £ which is your pensionable earnings we held on the statement date. The actual amount your nominee / estate would get would be based on your final pay on the date of your death.

Your total survivor’s annual pension: £

Every effort has been made to ensure that this statement is accurate. It is based on the latest data that is held, but it is not a guarantee of your entitlement.


Name: Anne N Other

Date of birth: 25 January 1975

National Insurance number: AB123456D


This section provides a summary of your personal details.

If you think anything is wrong with these details, please tell your employer in the usual way so they can amend your HR and pension record. We cannot update your personal details on your pension record as any updates must be supplied by your employer.

For guidance on how to update your personal information, see the ‘Updating yourdetails’ page in this guide.

This section of your statement shows your current nominations. If this section is blank, it means we don’t hold any death benefit nominees for you.

If we don’t hold any nominees for you, your lump sum will be paid to your personal representative. You can nominate more than one beneficiary and choose how to divide your lump sum between them.

To make a new death benefit nomination or to change your current nomination, you will need to complete a new Death Benefit Nomination form. You can find the form on the Member forms page of the Civil Service Pensions website: www.civilservicepensionscheme.org.uk/members/member-formsPlease complete your form in black ink and in block letters and return it to:


You can find more information about death benefits in this guide:www.civilservicepensionscheme.org.uk/members/quick-start/peace-of-mind

Your death benefit nominees

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Your death benefit nominee Name: Anne N Other

Address: Address line 1, Address line 2 Address line 3

If this section is blank, we don’t have a death benefit nominee on your record.

As a member of classic you can only have one nominee.

If you want to add a nominee, or change your nominee details you can find a nomination form on the Member forms page of the Civil Service Pensions website: www.civilservicepensionscheme.org.uk/members/member-forms

More information about your death benefit nominee is available in the Important notes at the end of this statement.

Your scheme membership

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Your scheme membership classic: You’ve been a member of classic since DD Month YYYY


Your pension is subject to certain tax limits. Lifetime Allowance (LTA) is the limit on the amount of pension benefit you can build up in your lifetime before you have to pay a tax charge. From 6 April 2016, the standard Lifetime Allowance is £1m.

Percentage of standard Lifetime Allowance used by benefits as at the statement date: XXX%

There is also an annual limit on the amount of pension savings you make in any tax year before you have to pay a tax charge; this is known as the Annual Allowance (AA). If the growth in the value of your pension in the Civil Service Pension arrangements exceeds this limit in any tax year, you’ll receive a Pension Savings Statement by 6 October which will tell you about the action you need to take. If you have other pension savings, including Civil Service Additional Voluntary Contributions, you need to consider all of them against the AA limit each year.

More information on your pension and tax is available in the Important notes section. You can find further information here:http://www.civilservicepensionscheme.org.uk/members/pensions-and-tax/

This section shows the date you joined classic and began building up benefits.If you think the details of your scheme membership are wrong, please contact us by either:

Emailing your query to [email protected]

Writing to us at:


(Please include copies of any supporting documentation when contacting us.)

Calling us on: 0300 123 6666

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Your scheme membership classic: You’ve been a member of classic since DD MM YYYY






This section shows the percentage of standard Lifetime Allowance used by your benefits. This statement only shows the percentage of the Lifetime Allowance used up by your Civil Service pension.

For more information about the Lifetime Allowance, visit the HM Revenue & Customs website which contains information about the tax rules that apply to pensions in the UK.www.gov.uk/government/organisations/hm-revenue-customs

For more information about your Civil Service pension and tax visit: www.civilservicepensionscheme.org.uk/members/pensions-and-tax


Page 5

Your scheme membership classic: You’ve been a member of classic since DD Month YYYY






Please note: If the Lifetime Allowance percentage shown on your statement is 100% or more, then you should visit HM Revenue & Customs website for further guidance and action to take.

www.gov.uk/government/organisations/hm-revenue-customs

http://www.civilservicepensionscheme.org.uk/members/pensions-and-tax


Your qualifying service in classic This is the length of time you’ve been a member of the scheme and have been building up benefits in classic.

Your reckonable service in classic This is the amount of service, including transferred in service and any Added Years that you may have bought, that counts towards your classic benefits. Working part-time will reduce your pension by reducing your reckonable service. Your pension is based on your reckonable service and your full-time equivalent pensionable earnings.

Your classic Normal Pension AgeFor the majority of classic members this will be age 60, unless you have a personal pension age.

Your pensionable earningsNot all of your pay counts towards your Civil Service pension. Pensionable earnings is usually your basic pay and some types of allowances and bonuses. To find out more about which parts of your pay are pensionable, contact your employer in the usual way.

Your annual classic pensionThis is the amount of pension that can be claimed in full, from your Normal Pension Age, worked out using your current pensionable earnings that have been provided by your employer. Your pension will be reduced for early payment if you claim it before your Normal Pension Age. The figure shown here does not take into account any of these reductions.

The classic Normal Pension Age benefits shown, are made up of the pension you’ve built up, plus any pension you’ve transferred in from another pension scheme and any Added Pension that you may have bought. It also includes any pension debit that has been implemented.

Please note: If a Pension Sharing Order or Scheme Pays Debit is currently being processed, this will not be taken into account until your next statement.

Your standard lump sum This is your standard lump sum, calculated as 3 x your classic pension.

Your death benefits This is your survivor’s annual pension, that may be paid to your spouse, or civil partner. There may also be a pension payable to any eligible children. The classic scheme guide (on the Civil Service Pensions website) contains information on how classic survivor benefits are worked out. www.civilservicepensionscheme.org.uk/members/classic

http://www.civilservicepensionscheme.org.uk/members/classic

All of the figures shown on your Annual Benefit Statement are rounded to whole pounds.

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Your qualifying service in classic to statement date: XX

Your reckonable service in classic to statement date: XX

Your classic Normal Pension Age: 60

Your pensionable earnings: £

Not all service is necessarily included when we work out how much pension you will get. For more information on reckonable service, please refer to the Important notes section.

Your classic pension earned to the date of this statement

Your annual classic pension: £

Your standard lump sum: £

Normal Pension Age is the age at which you can take your full benefits without the amount you get being reduced for early payment. For most classic members this is age60. The amounts shown above include any transferred in service, added years or added pension benefit you have.

Your death benefits

Your death in service lump sum Your classic survivor’s annual pension:

Your classic survivor’s annual pension may be paid to your spouse or civil partner in the eventof your death. For more information, please refer to the Important notes section.

£

£

To find out how long you can expect things to take when you claim your Civil Service pension, read the following guide: www.civilservicepensionscheme.org.uk/members/what-to-expect/when-you-claim-your-civil-service-pension


This shows a breakdown of the additional classic benefits you have built up to the date of the statement. Your statement will only show those that apply to you.

Benefit type This shows the Added Pension you’ve bought in classic. Added Pension is a separate pension you’ve built up by either making additional regular monthly contributions or one-off lump sum payments. This Added Pension also provides a survivor’s pension in the event of your death.

Opening balanceThis is the opening balance of your Added Pension benefits at the start of the scheme year.

Added this year This shows the benefits you have added during the scheme year.

Annual adjustment This shows the annual adjustment that depends on the change in prices.

Closing balanceThis is the total closing balance as at the date of the statement and is the sum total of all elements shown.

TotalThis shows both the total opening balance and closing balance of all your benefit types.

Transfer inIf you have transferred benefits from another pension scheme into your Civil Service pension, any service that was credited into your classic pension will be shown here.

Added YearsIt was possible, up to 29 February 2008, to buy Added Years of service. If you’ve bought or have an existing Added Years contract, the Added Years you have purchased will be shown here.

For more information about Added Pension read the following Quick Start guide, available on the Quick Start page of the Civil Service Pensions website. www.civilservicepensionscheme.org.uk/media/95431/qsg-addedpens-jan16.pdf

http://www.civilservicepensionscheme.org.uk/media/95431/qsg-addedpens-jan16.pdf

All of the figures shown on your Annual Benefit Statement are rounded to whole pounds. Where any of the figures are under £1, your statement will show a £0 entry in its place.

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Benefit type Opening balance Added this year Annual

adjustment X.XX%

Closing balance

Added pension (self and

dependants) each year

£ pa £ x XX = £ pa

XX% £ pa

Total £ pa £ pa

If you bought added pension in classic, a standard lump sum will also be payable equal to three times the classic added pension. These benefits are included in the total classic pension on the previous page.

Annual adjustments for classic added pensions are set by HM Treasury and are based on changes to prices. You can read more about these in the Important notes section.

Your transferred in service credit: XX

Your added years purchased: XX

Any transferred in service credit and added years you have bought are included in your reckonable service shown on the previous page.

If you will remain in classic up to your Normal Pension Age, this section includes some illustrations of the pension benefits you might receive at ages 55, 60 and 65.

Your projected pension at 55, 60, 65These are the three separate ages that your pension is projected to. Age 55 is before the classic Normal Pension Age, so the figures at 55 have been reduced to take into account early payment. Age 60 is the classic Normal Pension Age, and age 65 is also provided.

Your reckonable service This shows the amount of reckonable service you could build up by the ages shown. Your service assumes that your working pattern will remain the same as at the statement date. Your total pensionThis is the amount of pension benefits you could build up at the ages shown. The amounts are worked out using your current salary and the projected reckonable service shown.

Your standard lump sumThis is the standard lump sum payable based on the pension shown.

Please note: The pension and lump sum amounts shown project your main scheme benefits and any transfer in and Added Years you have bought up to the statement date. Added Pension has not been included in the projection. You can see what you have bought to the statement date in the ‘Your additional classic benefits’ section of your statement.


If you are due to move into alpha with an individual taper date your statement will not include any projected benefits, as the way your benefits build up in alpha will change.

These figures are only illustrations and are not a guarantee of the benefits you will receive.

Page 8


This section shows an estimate of what your benefits might be at different retirement ages. The projected pensions and lump sums are based on your current salary and assume no change to your working pattern. This is only an illustration and is not a guarantee of the benefits you will receive.

Your projected pension at:

age 55 age 60 age 65

Your reckonable service XX years XX days XX years XX days XX years XX days

Your total pension (each year)

Your pension takes account of your pension sharing order

£ pa

Your standard lump sum £

The figures above include only the added pension you have bought to the date of the statement. The total added pension you receive at retirement will depend on any contributions for added pension that you pay in the future.

£ pa £ pa

£ £

AbatementIf you have a Civil Service pension, or have taken an Annual Compensation Payment (ACP) and subsequently take a job with an organisation that is covered by the CSP arrangements, you may not earn more, by way of ‘re-employed’ salary and pension, than you were earning before you retired. Where your new salary and pension exceed your previous salary, we deduct the excess from your pension. This is known as ‘abatement’. Abatement only applies to classic, classic plus, premium, and nuvos.

Added PensionAdded Pension is an amount of extra annual pension that you can buy by making additional contributions; it will be paid with your pension after you retire.

Added YearsIt was possible, up to 29 February 2008, to buy Added Years of service. If you have an existing Added Years contract, you will continue to add to your reckonable service as long as your Added Years contributions under your contract continue to be paid. If your working hours change your Added Years contract will change too.

Additional lump sumWhen you take your pension benefits, within the limits set by HM Revenue & Customs, you may be able to choose to exchange some of your pension for a lump sum. Taking this will reduce your pension amount.

Additional Voluntary Contributions (AVCs) You can make additional contributions to the CSAVC scheme to enhance your benefits. The CSAVC scheme is a separate scheme, provided by Scottish Widows and Standard Life. You can contact the relevant CSAVC provider using the contact details below.

Scottish Widows - 0800 0284419 or www.scottishwidows.co.uk/civilserviceStandard Life - 0800 333304 or www.standardlife.co.uk/civilservice

Annual AllowanceThe annual limit on the amount of pension savings you make in any tax year before you have to pay a tax charge. The level of allowance is set by HM Revenue & Customs.

Banked serviceAny service built up in classic, classic plus, premium or nuvos when a member moved into alpha.

Death benefit nomineesA person, people or an organisation that you have nominated to receive the lump sum payment when you die.

Final payThis is used to work out the lump sum payable if you die in service, if you are a member of alpha or nuvos when you die.

Final pensionable earningsYour pensionable earnings are used to calculate your benefits when you retire. The calculation is different for each scheme, so please refer to the relevant scheme guide for more information.

Glossary

Lifetime AllowanceThe maximum amount of pension savings you can build up over your life without incurring an additional tax charge.

Minimum pension ageMinimum pension age is the earliest you can claim your benefits. If you joined the PCSPS before 06 April 2006, your minimum pension age in that scheme is likely to be 50. All other members can take their benefits from age 55. The minimum pension age in alpha is currently age 55.

Normal Pension Age (NPA)The earliest age that you can take your full unreduced pension benefits.

Partial retirementPartial retirement is for members who want to start accessing their pension and move gradually from work to retirement. You have to agree this with your employer and reduce your earnings by at least 20% by reducing your working hours or grade. Abatement may apply to members of classic, classic plus, premium, and nuvos.

PCSPSThe Principal Civil Service Pension Scheme. This is the collective name for classic, classic plus, premium and nuvos.

Pensionable earningsAll the earnings that could count towards your pension which you receive during the scheme year.

Preserved benefitsIf you leave the scheme with more than two years’ service, under Normal Pension Age and do not transfer your pension to another scheme, the pension benefits that you have built up will be held in the scheme (preserved) until you claim them. Cost of living increases are applied each year.

Qualifying serviceThe time you have been a member of the scheme that qualifies you for certain benefits.

Reckonable serviceThis is the amount of service, including transferred in service and any Added Years that you may have bought, that counts towards your pension benefits. Working part-time will reduce your pension by reducing your reckonable service.

Transfer inPension benefits, from another pension arrangement, that you moved into the Civil Service Pensions arrangements.

Further information

We value your feedbackWe’re always looking for ways to improve the information we provide and to make sure we’ve got it right, we want to hear your feedback. To help us, please take a minute to tell us what you think about this guide, by going to the following address and completing the short survey: www.smartsurvey.co.uk/s/2017ABSguide

Further information about Annual Benefit StatementsThe Annual Benefit Statement page on the Civil Service Pensions website contains more information about Annual Benefit Statements including how statements are produced and issued, a set of frequently asked questions and answers and a distribution schedule. To find out more, click here: www.civilservicepensionscheme.org.uk/ABS

Check the web for more general pension informationRemember, if you’re looking for information about your Civil Service pension, you should first check the Civil Service Pensions website. We’ve created scheme guides, ‘What to expect’ guides, Quick Start guides and FAQs that cover key pension events and help you to better understand your pension benefits.

FeaturesWe also have a brand new section of the website, called ‘Members like me’. Inspired by members we met at events all over the country, ‘Members like me’ is available on the Civil Service Pensions website now to help you find the information you need, when you need it. Visit ‘Members like me’ now, at: www.civilservicepensionscheme.org.uk/members/members-like-me

http://www.civilservicepensionscheme.org.uk/members/members-like-me

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