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EPN193 - Pension reform: introduction of added pension

Audience:

  • HR Managers and policy teams
  • HR staff who are responsible for pensions communications

Action: You must issue the attached Civil Service pension reform newsletter 2 to all staff

Timing: As soon as possible

Background

  1. EPN186 gave you details of amendments that we made to the rules of the Civil Service pension scheme in July, and provided you with a newsletter about Civil Service pension reform to issue to your staff. The newsletter provided information to staff about one change in particular - the introduction of an option for staff to give up some of their pension on retirement in exchange for a higher tax-free lump sum – and information about the timing of other changes planned for existing staff.
  2. We have now made further amendments to the rules of the Civil Service pension scheme to provide for the introduction of added pension, and you must therefore issue the attached newsletter to all staff to tell them about this and about the withdrawal of the added years facility. It is important that all staff are made aware of these changes.
  3. EPN177 gave you further details about the introduction of added pension and included some Q&A on the subject. As a result of consultation with stakeholders, we have made the following two changes in policy since that EPN was issued:
  • classic members have until 1 March 2008 to sign up for an added years contract starting from their next birthday (EPN177 said that classic members could only do this if their next birthday fell before 1 January 2009)
  • members who reach age 60 between 1 October 2007 and 1 March 2008 can buy added pension from their 60th birthday (EPN177 said that they would have to wait until 1 March 2008). These have been reflected in the new rules (and are reflected in the attached newsletter).
  1. The Q&A relating to the introduction of added pension and withdrawal of added years (and the other changes affecting existing staff) has now been updated and is available on our website under “Pension reform”. Members should contact their pensions administrator if they want to apply to buy added pension.

Reference

This document refers to EPN177 and EPN186.

Contacts

Enquiries about content, distribution or to receive in a different format

employerhelpdesk@cabinet-office.x.gsi.gov.uk
01256 846414
Employer Helpdesk
Civil Service Pensions
Grosvenor House
Basing View
Basingstoke
RG21 4HG