Pensions Circular/xx - The Civil Service
Pensions Circular/xx - The Civil Service
Pensions Circular/xx - The Civil Service
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<strong>Pensions</strong> <strong>Circular</strong>/270Principal <strong>Civil</strong> <strong>Service</strong> Pension SchemeRelaxation of transfer time limits – additional factors for membersover age 60ISSUEThis PC:• Gives further details of the revised time limits that apply fortransfers into and out of the PCSPS (classic, classic plus andpremium).Annexed to this circular are:• Additional factors for transfers into and out of the PCSPSwhere the member is over age 60; and• List of revised Pension Manual pages.ACTION<strong>The</strong> content of the circular should be brought to the attention of allstaff involved in transfers into and out of the PCSPS.TIMING<strong>The</strong> new time limits were included in the last amendment scheme,which came into force from 26 July 2006.Background1. Prior to the July 2006 Amendment Scheme, there was an age limit for transferring intoand out of the PCSPS. For non-Club transfers the member had to apply before reaching age 59.With effect from 26 July 2006 the age limits that apply to these transfer arrangements have beenrelaxed.Transfers in2. Active members of premium, classic or classic plus may transfer in benefits fromanother occupational pension scheme at any age. Members may now apply for a transfer in atany time up to when they start the administrative process of claiming their pension (i.e. whenthey complete and return their personal details form). However, the transfer must be completedbefore the member leaves pensionable service (and in all cases before their pension comes intopayment).
3. ‘Club’ and non-occupational pension schemes – <strong>The</strong> additional time limits that applyto transfers in under the Public Sector Transfer Club (the Club), or from a non-occupationalpension scheme, have not changed. In both circumstances, the member must apply for thetransfer within 12 months of becoming eligible to join premium, classic or classic plus.Additionally, a member cannot take a Club transfer if they are above the pension age of thesending scheme.Transfers out4. Preserved (deferred) members may transfer out their premium, classic or classic plusbenefits at any age provided they have not started the administrative process of claiming theirpension (i.e. when they complete and return their personal details form).5. <strong>The</strong> age limit for transfers out has also been lifted in respect of those who leave withoutqualifying for a preserved award. However, the additional time limits that apply in such caseshave not changed (i.e. the member must normally apply for a transfer within 3 months of leavingservice).6. ‘Club’ transfers - <strong>The</strong> additional time limits that apply to transfers out under the Clubhave also not changed. Members must apply for a Club transfer out within 12 months ofbecoming eligible to join their new Club scheme, and before reaching the premium, classic orclassic plus pension age.Transfer value factors7. Annex A to this <strong>Pensions</strong> <strong>Circular</strong> contains additional transfer value factors coveringmembers between ages 60 and 65 (inclusive). Inward and outward transfer calculations formembers over age 59 should be calculated in the same way as for other members, using theseadditional factors. If you are asked to calculate a transfer (inward or outward) for a member overage 65, you should request specific factors via the APAC Helpdesk.Penserver8. <strong>The</strong> PenServer system has not yet been amended to cater for these changes. Factors havenot been added and the systems own checks will still try to prevent TV’s for members over age60. <strong>The</strong> software will be amended by Claybrook at the next release but in the meantime you willneed to calculate such transfers manually using the factors provided.<strong>Pensions</strong> Manual9. <strong>The</strong> <strong>Pensions</strong> Manual and APAC Guidance Notes have been updated to incorporate theabove changes, as well as revised guidance relating to overseas transfers – previously circulatedunder cover of APAC (54) letter on 28 July 2006. At Annex B to this <strong>Pensions</strong> <strong>Circular</strong> is a listof the revised pages that are now available from the CSP website.
Cabinet Office<strong>Civil</strong> <strong>Service</strong> <strong>Pensions</strong> Division8 th Floor, Grosvenor House, Basing View, Basingstoke, Hants, RG21 4HGEnquiries on content:e-mail: apachelpdesk@cabinet-office.x.gsi.gov.ukEnquiries on distribution: Geraldine Frolich GTN: 1439 6540STD: 01256 846540e-mail: geraldine.frolich@cabinet-office.x.gsi.gov.ukFile reference: 3CSP/19/1Date: October 2006
PC/270 Annex AFactors used in calculating the AMC for non-Club transfers(‘Transfer to the PCSPS’ – 5.2 Annex A, Table 3)(‘Transfer from the PCSPS’ – 4.5 Annex C, Table 3)Age last birthday atguarantee dateYield on index-linked stocks at guaranteedate1% 2% 3%60 1.13 1.00 0.9061 1.13 1.00 0.9162 1.12 1.00 0.9163 1.12 1.00 0.9164 1.12 1.00 0.9165 1.11 1.00 0.92
Non-Club transfers from the PCSPS: cash equivalent factors (men).(‘Transfers from the PCSPS’ – 4.5 Annex A, Table 1)Age lastbirthday atguaranteedateGross pension of£1 a yearRetirement age 60, or immediately if laterDeductionfor NImodificationof £1 a yearLump sumof £1Widow'spension of£1 a yearDeduction for GMP of £1 ayearpre-88 post-8860 18.40 12.33 1.00 3.31 2.18 -0.2661 17.93 12.94 1.00 3.38 2.43 -0.0462 17.45 13.61 1.00 3.46 2.71 0.1863 16.97 14.33 1.00 3.53 3.01 0.4264 16.48 15.12 1.00 3.60 3.33 0.6865 15.98 15.98 1.00 3.67 3.62 0.94
Non-Club transfers into the PCSPS: cash equivalent factors (men).(‘Transfers to the PCSPS’ – 5.2 Annex B, Table 1)Age lastbirthday atguaranteedateGross pensionof £1 a yearRetirement age 60, or immediate if laterLump sum of£1Widow'spension of £1a yearDeduction for GMP of £1 ayearpre-88 post-8860 18.40 1.00 3.31 3.30 0.8661 17.93 1.00 3.38 3.34 0.8762 17.45 1.00 3.46 3.41 0.8963 16.97 1.00 3.53 3.49 0.9164 16.48 1.00 3.60 3.58 0.9365 15.98 1.00 3.67 3.62 0.94
Non-Club transfers from the PCSPS: cash equivalent factors (women).(‘Transfers from the PCSPS’ – 4.5 Annex A, Table 2)Age lastbirthday atguaranteedateGrosspension of£1 a yearRetirement age 60, or immediately if laterDeduction forNImodificationof £1 a yearLumpsum of £1Widower'spension of£1 a yearDeduction for GMP of£1 a yearpre-88 post-8860 19.69 0.00 1.00 0.93 4.40 1.2061 19.26 0.00 1.00 0.94 4.50 1.2262 18.81 0.00 1.00 0.96 4.63 1.2663 18.36 0.00 1.00 0.97 4.73 1.2864 17.91 0.00 1.00 0.98 4.81 1.3165 17.44 0.00 1.00 0.99 4.81 1.30
Revised Pension Manual pages now available from the CSP websitePC/270 Annex BTransfers to the PCSPSSection 1 contentsChapter 1.1Chapter 1.2Chapter 1.2aChapter 1.2bChapter 1.3Chapter 2.1Chapter 2.1bChapter 2.3Chapter 2.4Chapter 2.4aChapter 3.1Chapter 3.6Chapter 4.1Chapter 4.2Chapter 4.2aChapter 4.2bChapter 4.3Chapter 4.3aChapter 5.1Chapter 5.2Chapter 5.2aChapter 5.2bChapter 5.3Transfers from the PCSPSChapter 1.1Chapter 1.3Chapter 1.3aChapter 1.5Chapter 1.6Chapter 2.2Chapter 2.4aChapter 2.4cChapter 2.4eChapter 2.4fChapter 2.4gChapter 3.1Chapter 3.1cChapter 4.1Chapter 4.2aChapter 4.3Chapter 4.4Chapter 4.4bChapter 4.5Chapter 4.5aChapter 4.5cChapter 4.7Chapter 4.9Chapter 5.1Chapter 5.2Chapter 5.2aChapter 5.3Chapter 5.4Chapter 6.1Chapter 6.3Chapter 6.5Chapter 7.1Chapter 7.2Chapter 7.4Chapter 7.5Chapter 7.6Chapter 7.7Section 8 contentsChapter 8.3Chapter 8.3cChapter 8.4Chapter 10.2Chapter 10.3Chapter 10.4Chapter 10.5cChapter 10.5dChapter 10.6Chapter 10.6aChapter 10.6cChapter 10.6dChapter 10.6eChapter 11.3APAC guidance notesChapter 11