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EPN421 - Buying added pension - reminder for 2014-15 and information about purchases for 2015-16

Audience:

This notice will be of interest to:

  • HR Managers;
  • Pension Leads; and
  • All staff responsible for dealing with added pension contracts and enquiries from members.

Action:

To:

  • Issue the attached notice "Information for Civil Service Pension Scheme members" to all staff by 12 February 2015.
  • Remind your payroll provider to expect a possible increase in the volume of added pension instructions from MyCSP.
  • Note the information about purchases from 2015-16 including the effect of the introduction of alpha.

Timing:

Immediate - to enable staff to apply within the deadlines

Detail

  1. Members who wish to pay extra to top up their benefits in any of the classic, classic plus, premium or nuvos sections of the Civil Service pension Scheme can buy added pension (EPNs 177 and 193 refer). The attached information notice advises members of the approaching deadlines for applying and tells them how to apply if they are interested.
  2. For purchases before 1 April 2015, the maximum amount of added pension that members can buy is as follows:

    classic                                                  £4,880 (plus lump sum of £14,640)
    premium, classic plus and nuvos      £6,100
  3. Added pension can be bought with a lump sum (either through payroll or by cheque) or by monthly contributions (through payroll). Members who wish to pay for their added pension by monthly contributions can only start from 1 April (see information about purchases for 2015-16 below).
  4. Members who wish to buy added pension with a lump sum through payroll before the end of the scheme year must ensure that their application is received by MyCSP by 23 February 2015, to enable them to check and process the application, and inform the relevant employer in time for deductions to be made in the March pay run.
  5. Members who wish to buy added pension with a lump sum with a cheque before the end of the scheme year must contact MyCSP for further details as soon as possible and then must ensure that their application and cheque are received by MyCSP by 27 February 2015, to enable them to check and process the application, and pass the cheque to Cabinet Office.
  6. This information applies to members who have been in service for more than 12 months; the rules vary for new entrants. This is highlighted in the attached message and new entrants are advised to contact MyCSP for advice on eligibility.
  7. Please issue the notice as soon as possible and remind your payroll provider to expect added pension instructions from MyCSP.
  8. Purchases for 2015-16

    Classic, classic plus, premium and nuvos members will be able to buy added pension in those schemes in 2015-16 for as long as they remain members. The maximum amount of added pension that members can buy will increase in 2015-16 as follows:

    classic                                               £5,200 (plus lump sum of £15,600)
    premium, classic plus and nuvos   £6,500
  9. If and when classic, classic plus, premium or nuvos members move into alpha, they will only be able to buy added pension and / or a new facility called EPA in alpha from that point on. The limit for alpha added pension and EPA will also be £6,500 and will be separate from the limit for classic, classic plus, premium or nuvos (so it will be possible for members to buy the maximum amount in alpha even if they have already bought the maximum amount in classic, classic plus, premium or nuvos).
  10. Guidance on purchases for 2015-16 in classic, classic plus, premium, nuvos and alpha will be issued in a separate EPN shortly.

Contact

If you have a question about the distribution of EPNs contact employerpensionnotice@cabinetoffice.gov.uk.

You can find electronic copies of the Employer Pension Guide, all current EPNs and forms on our website.

This notice is for employers and should not be issued to scheme members.

If members have a question about their pension they can find information on this website or by contacting MyCSP.