10.1.20 If you want to make an allowance or a non-consolidated element of pay pensionable, you must first contact the Scheme Manager, Cabinet Office (cspsemployerenquiries@cabinetoffice.gov.uk) with a business case (see standard template at Annex 10D) giving details of the allowance and the date from which you want it to become pensionable. They will either give you the go ahead or tell you the reasons why they cannot approve your request.

10.1.21 Tell the Scheme Administrator (interfaceteam@mycsp.co.uk) of your intentions and agree with them how they will handle the administration and payroll interface implications.

10.1.22 If the Scheme Manager, Cabinet Office agrees to you making the pay element pensionable, GAD must then be commissioned to assess the past service costs.  You can commission GAD direct for this service or you can request that the Scheme Manager, Cabinet Office commission this work from GAD on your behalf.

10.1.23 You will have to pay GAD for their services.  GAD’s fees for this work can be significant.  To minimise the costs to employers, GAD will initially calculate a ‘broad brush’ assessment of the past service costs.  If you consider the cost not to be prohibitive, you need to confirm to GAD that you wish them to proceed with the full past service costs assessment.

10.1.24 You must give GAD the following information: 

  • details of the proposed change and the number of members who will benefit; 
  • whether you plan to make it available to new staff and, if so, how many –  if you are not making it available to new staff make sure you are not legally obliged to do this; 
  • effective date for the pay element to become pensionable – GAD will calculate the past service costs as at that date – from that date contributions will be payable on the total new pensionable pay; 
  • details of where to send the invoice. 

10.1.25 You will also need to provide GAD with an Excel spreadsheet (using the standard template at Annex 10E) on which you will need to include the following information on each member you are applying for: 

  • member number; 
  • gender; 
  • date of birth; 
  • date joined scheme; 
  • current member section (classic, premium, classic plus, nuvos or alpha – see Note 1 below); 
  • member section prior to 1 April 2015 (classic, premium, classic plus, nuvos - only required for members in service before 1 April 2015); 
  • linked service (nuvos members) indicator [Y/N]; 
  • Full-time equivalent (FTE) pensionable pay at the extract date (see Note 2 below); 
  • Actual pensionable pay at the extract date (see Note 2 below); 
  • Increase to (FTE) pensionable pay (due to making a new element of pay pensionable or due to proposed increase to current pensionable pay); 
  • total 80ths reckonable service for member’s benefits (include all elements in Note 3 below); 
  • total 60ths reckonable service for member’s benefits (include all elements in Note 2 below); 
  • earnings cap indicator [Y/N]. 

Note 1: You do not have to provide any information about members who are in partnership, or members in nuvos and/or alpha who do not have either Club transferred in service, linked final salary service, or in alpha, banked service. This is because there are no past service costs to consider in stakeholder or career average pension arrangements. 

Note 2: Pay amounts should be the annualised amounts over the extract year, i.e. assuming members are in employment for the whole year. Full-time equivalent pay means the annualised pay the member would have received for full-time hours. Actual pay means the annualised pay for working the member’s own part-time or full-time hours.  

Note 3: This should be the total reckonable service. The reckonable service recorded should be reduced for any pension that is already in payment under partial retirement provisions.  Service should be specified in years, with part-years counting proportionately.  It will include:

a. service credited on receipt of transfer value (including bulk transfers, Club transfers in where relevant and nuvos linked service);

b. added years of service already bought by lump sum, or where the regular contributions have ceased;

c. the proportional credit purchased as at the extract date for added years contracts still in force.  For example, if a member chooses to purchase 6 years of added service between 31 March 1998 and 31 March 2018 (over a period of 20 years) then the added years of service included in the data for an extract date of 31 March 2016 would be 5.4 years (i.e. 18/20 x 6);

d. any periods of service relating to previous employment, where the service is still reckonable for a benefit in the scheme and linked to the member’s final salary;

e. any periods of part-time service needs to be reflected, e.g. reckonable service for part-time service pro-rata based on actual hours worked / standard hours;

classic members will have reckonable service in the 80ths data field.

premium members and linked service nuvos members will have service in the 60ths data field

classic plus members will have reckonable service in both the 80ths data field and the 60ths data field.

10.1.26 You will need to ask the Scheme Administrator for some of this information. They may charge you for this service. Any request for information from the Scheme Administrator should be sent to your Employer Relationship Manager (ERM).

10.1.27 You do not have to provide any information about members who are in partnership, or members in nuvos or alpha who do not have either Club transferred in service, linked final salary service, or in alpha, banked PCSPS service. This is because there are no past service costs to consider in stakeholder-type or career average pension arrangements.

10.1.28 If you are happy with GAD’s assessment, you will then need to contact the Scheme Manager, Cabinet Office (through the CSPS Employer Enquiries mailbox - cspsemployerenquiries@cabinetoffice.gov.uk) confirming that you wish to accept it. You must enclose a copy of GAD’s assessment and details of how you will be paying the past service costs to the Cabinet Office Civil Superannuation Vote.

10.1.29 Once the Scheme Manager, Cabinet Office have received payment for the past service costs they will then write to you to confirm that the allowance is pensionable.

10.1.30 You will need to make sure that your payroll and the Scheme Administrator understand the status of the pay element. Your payroll must understand that it has to calculate both ASLCs and employee contributions on the new pensionable element.

10.1.31 There is a flowchart (at Annex 10C) setting out the process for making an allowance or non-consolidated payment pensionable.

Published:
5 January 2022
Last updated:
28 January 2022