4.1.51 Blank

4.1.52 If a new entrant who has been enrolled in the CSP arrangements confirms that they wish to opt out within three months of being enrolled or being told that they have been enrolled (if later), you should take the following action, depending on the circumstances stated:

a) If the new entrant has opted out within one month of being enrolled or being told that they have been enrolled (if later) you must tell your payroll to:

  • give the employee a refund of any alpha, nuvos or premium pension contributions they have paid for that period, less income tax; and
  • recover any overpaid alpha, nuvos or premium scheme ASLCs from the Cabinet Office Civil Superannuation Vote.

You do not need to wait for the Scheme Administrator to tell you to process the refund. However, you should send a copy of the completed Opt Out form so that they are aware of the member’s choice and can ensure that the member’s pension record correctly reflects the choice.

b) If the new entrant has opted out after one month of being enrolled or being told they have been enrolled (if later), you should send a copy of the completed Opt Out form to the Scheme Administrator and wait for them to tell you if a refund is to be paid through payroll. If the Scheme Administrator tells you to refund the employee contributions, you must tell your payroll to refund the contributions as instructed in a) above.

The opt out process and resulting action required is also set out in Annex 5D.

Please note: The different approaches to handling refunds that must be taken are to ensure that any new starters who may in fact be rejoiners with a previous preserved pension, are identified and that their contributions are dealt with appropriately under the relevant scheme or automatic enrolment rules. Most rejoiners with a previous preserved pension in a Civil Service scheme do not receive a refund for any further pension contributions made under the current scheme rules if they opt out after one month of being enrolled or being told they have been enrolled (if later).

A refund may be due in some circumstances, for example, where a rejoiner with a preserved PCSPS award is enrolled into alpha on rejoining and the break between their previous and their current Civil Service employment is over 5 years (and they have had no service in another public service pension scheme in between). The Scheme Administrator can provide further advice on this if required.

Published:
23 December 2021
Last updated:
23 December 2021