3.5.19 The limit to reckonable service under classic is 45 years in total. Prior to 1 March 2008, the limits were:
40 years by the scheme pension age (age 60 for most members), or
if a member was re-employed after the scheme pension age, re-employed reckonable service was limited to 5 years (45 years in total).
Although the service limit for all was increased to 45 years from 1 March 2008, service accrued before 1 March 2008 remained limited as described in the above two bullets.
3.5.20 Members of classic must contribute a percentage of their pay towards the cost of providing benefits for their widow, widower or surviving civil partner after their death (the Widow(er)s’ Pension Scheme (WPS)). In addition they will pay a percentage of their pensionable earnings towards their personal benefits.
If a member completes 45 years’ service, they will continue to pay the WPS contribution at a rate of 1.5% until they leave service or reach age 75, whichever is earlier. The employer contributions must also continue to be paid. However, the contributions that the member pays in addition to the 1.5% WPS contributions will cease when the service limit is reached. You will need to liaise with the Scheme Administrator (MyCSP) to confirm how they will inform you of those members who are approaching the service limit to ensure that you cease their additional contributions at the right time.
Effect on classic plus & premium members
3.5.21 The reckonable service limit in classic plus and premium is also 45 years (prior to 1 March 2008 the limit was 40 years). Member contributions should stop when the member reaches the 45 year service limit. Employer contributions should continue to be paid. You will need to liaise with the Scheme Administrator to confirm how they will inform you of those members who are approaching the service limit to ensure that you cease their contributions at the right time.
Effect on partnership members
3.5.22 Member contributions should cease at age 75; however employer contributions should continue to be paid.
Effect on nuvos and alpha members
3.5.23 Reckonable service is not applicable to alpha or nuvos. A nuvos member’s pension will be restricted to 75% of their final pay. This limit does not apply to alpha.