Date posted: 01/09/2008
Audience: This Notice will be of particular interest to:
- HR and Finance Managers who deal with the early departure of staff under Civil Service Compensation Scheme (CSCS) terms.
Action: Ensure that Civil Service Pensions Division (CSPD) receives written authority to recover benefits paid on behalf of the employer.
No action is required if you already pay early departure costs each month.
Timing: Before early departure benefits are awarded.
- We in CSPD act as your agent in the payment of CSCS benefits. You as employer decide who of your staff take early retirement/severance and arrange for your Authorised Pension Administration Centre (APAC) to send details of the awards (that is, the payments to be made) to Capita Hartshead. Capita is the pension payroll contractor paying out CSCS benefits. We manage this contract.
- You meet the full cost of early retirement/severance payments under the CSCS. However, Capita initially pays CSCS benefits from our bank account with HM Office of the Paymaster General (OPG). At the end of the month Capita recover benefits paid out on your behalf by debiting your bank account, either at OPG or with a commercial bank. Capita sends “bills” to you giving you details of CSCS benefits that they have recovered. The “bill” also itemises any charges for early payment of any superannuation lump sums or the capitalised cost of any enhanced service under Flexible or Compulsory terms.
- The same arrangements apply to any injury benefits paid under the PCSPS or the Civil Service Injury Benefit Scheme for injuries sustained on or after 1 April 1998.
- Future arrangements: If you currently receive a bill from Capita each month you do not need to take any action as we already have your authority to recover benefits paid on your behalf from either your OPG or commercial bank account.
- If you are considering releasing your staff under early retirement or early severance, under CSCS terms, you must contact us before you ask your APAC to send any awards to Capita. We will then arrange for you to complete the appropriate mandate authorising Capita to recover benefits paid on your behalf from either your OPG or commercial bank account. Failure to provide the mandate to us on time could lead to delays in the payment of benefits to your former staff.
This document refers to Employers’ Pension Guide, section 6
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