In October 2013, the government reformed its Fair Deal policy. As a result of the change, staff whose employment was compulsorily transferred from the public sector would continue to have access to a public service pension rather than a broadly comparable pension scheme.
New Fair Deal FAQ for members
What is New Fair Deal?
What is a New Fair Deal first generation transfer?
This is a compulsory transfer of staff from the Civil Service to an independent provider of public services.
What is a New Fair Deal second generation transfer?
One of the features of New Fair Deal is that staff, whose employment was transferred to an independent contractor under old Fair Deal before October 2013, can now rejoin Civil Service Pensions when the contract is renewed or in certain circumstances before the contract ends (with the agreement of the contracting authority). The current or new employer will be admitted to Civil Service Pensions under Fair Deal and eligible employees will rejoin the scheme for future service.
Individuals that were previously a member of Civil Service Pensions will rejoin the scheme that they would have been in (depending on their protection status in 2015) had they not left Civil Service Pensions.
Is there a member eligibility assessment?
The Contracting Authority and new employer are responsible for determining if an individual is eligible to rejoin Civil Service Pensions under new Fair Deal. The assessment is based on a number of criteria. We have produced a Member Eligibility Factsheet for employers to use when making this decision.
Which section of Civil Service Pensions will I join?
Once your eligibility to rejoin Civil Service Pensions has been determined, your employer will establish which section within Civil Service Pensions you will rejoin.
You will need to evidence or confirm your original scheme membership and your age at 1 April 2012. In principle, you will rejoin the scheme you would have been in if you had not been compulsorily transferred out of the Civil Service.
Further details about how your employer will seek to establish your member eligibility can be found in this factsheet.
What communications can I expect to receive on rejoining Civil Service Pensions?
You will receive a welcome letter from your employer once you are re-admitted to Civil Service Pensions. This will confirm the section of Civil Service Pensions you are being admitted into, together with some other important information.
If I am already in receipt of Civil Service pension, will abatement apply?
Usually, when you rejoin Civil Service Pensions, if your current salary and combined pension in payment exceeds your previous salary (including inflation), we will deduct the excess from your pension (which could reduce the pension to zero). This is called abatement.
Under New Fair Deal, previous Civil Service pension benefits that are already in payment before you rejoin Civil Service Pensions are not subject to the normal abatement rules and will continue to be paid to you unreduced.
If you take your Civil Service pension benefits after rejoining the pension scheme, normal abatement rules will apply, and your pension may be reduced or suspended entirely whilst you are a member of the scheme.
Will there be an opportunity to aggregate (join up) my previous pension benefits?
If you left your Civil Service pension benefits preserved when you were compulsorily transferred from the Civil Service, you have the option of aggregating (joining up) your benefits, within 12 months of rejoining Civil Service Pensions. This only applies if you are returning to the classic or premium schemes and are not tapering into alpha.
If you are tapering into alpha, you have 12 months to aggregate your benefits from the effective date of rejoining or before your tapered enrolment end date, or leaving service, whichever is earlier.
If you are rejoining nuvos, any previously preserved nuvos benefits will be automatically aggregated unless you request that the benefits are kept separate.
If you are moving into alpha on day one, you will not be able to aggregate. However, if your original TUPE transfer occurred less than five years before the transfer effective date, your preserved benefits will be cancelled and a final salary link will be established. Any preserved nuvos benefit you have will be cancelled and benefits will be increased in line with prices.
Can I opt out of Civil Service Pensions?
Yes. However, you are advised to read the Opting Out Factsheet, found here, to understand what you will be giving up if you leave the scheme.
Can I waive my New Fair Deal eligibility?
As an eligible employee you can elect to waive your Fair Deal protection. You must give this serious consideration as you will lose your entitlement to Fair Deal protection permanently.
You can request further information and the form to waive protection from your employer.
Will I be offered a bulk transfer of the benefit which I have accrued within the Broadly Comparable Scheme.
HM Treasury has produced guidance for Staff Transfers in the Public Sector. It states that outsourced employees moving back into Civil Service Pensions from their current employer's broadly comparable pension scheme have the option to protect their accrued rights via a bulk transfer arrangement. The Contracting Authority should commission GAD for this purpose. It is usually the sending scheme that performs the bulk transfer option exercise.
How long do bulk transfer exercises take to complete?
Assuming that good quality data is received promptly from the ceding scheme administrators and all parties are well engaged with the process, a bulk transfer exercise should be completed in around 9 to 12 months (this expected timeframe allows for members having 3 months in which to make their decision whether or not to take a bulk transfer option).
Who is the Scheme Administrator?
MyCSP is a third-party pension administration company that carries out the day-to-day administration of Civil Service Pensions under contract to the Scheme Manager (Cabinet Office).
I have a question that is not covered by these FAQs. Who should I contact?
If you are a member, you can contact us in a number of ways. You will need to provide some personal information when you call or write to us. This will include your National Insurance number and/or member number along with some other personal information that you may be asked to confirm.
Contact us here.