EPN616 - Reminder: buying Added Pension before 1 April 2021 & the deadline for purchasing added pension and EPA during 2021/22

Audience

  • HR managers
  • Pension leads
  • All staff responsible for dealing with added pension and EPA contracts and enquiries from members

Summary

  • This notice provides information about the approaching deadline for purchasing added pension and EPA before 1 April 2021.
  • The deadline for purchasing added pension and EPA during 2021/22.
  • Guidance on how to apply for added pension and EPA.

Actions

  • Issue the attached notice “Information for Civil Service pension scheme members” to all staff by 21 December 2020
  • To notify your payroll provider of a possible increase in added pension and EPA instructions from the Scheme Administrator (MyCSP)

Timing

  • Immediate

Detail

1. Members of classic, classic plus, premium, nuvos or alpha can top-up their benefits by buying added pension. Added pension can be bought via a lump sum payment or monthly contributions. Members of alpha are also able to buy an EPA (by monthly contributions only). By contributing to an EPA, members of alpha are able to take part of their pension earlier than their Normal Pension Age (NPA) without any early payment reduction.

2. Members can choose to buy added pension via lump sum (through payroll, BACs or by cheque ) or monthly contributions (through payroll).

Please note that, in light of the continued closure of offices due to the COVID-19 pandemic, this year we are encouraging members to not pay by cheque. With this in mind, please note that members can pay via payroll or BACs, and only if these options are not available to them then they should pay by cheque. If you do need to pay by cheque, your cheque made payable to ‘CO Civil Superannuation’ and completed application form must be with the Scheme Administrator by 21 January 2021.

Please note: alpha members cannot buy added pension via lump sum in their first 12 months of alpha membership.

Members who wish to pay for their added pension by monthly contributions can only start from 1 April - or the date the member joins alpha, if different (see information about purchases for the 2020/21 scheme year, below).

3. If a member applies to buy added pension or EPA within three months of joining the scheme, their payment can be backdated to the date they joined.

4. Buying added pension before 1 April 2021

The table below shows the maximum amount of added pension that members are eligible to buy before 1 April 2021.

Membership Maximum amount of added pension
classic £5,800 (plus a lump sum amount of £17,400)
premium, classic plus or nuvos £7,200
alpha £7,200 (this limit may be reduced if the member is also buying EPA)

5. To ensure that the application can be processed, members must ensure that the Scheme Administrator (MyCSP) receives their application and cheque (if applicable) to purchase added pension by lump sum before the deadlines shown below.

Buying added pension Deadline
Lump sum through payroll & BACs 17 February 2021
Lump sum by cheque 21 January 2021

6. Purchasing added pension during 2021/22

Members of classic, classic plus, premium, nuvos and alpha will be able to buy added pension in those schemes in 2021/22 as long as they remain a member. The maximum amount of added pension that members can buy in 2021/22 is:

Membership Maximum amount of added pension
classic £5,900 (plus a lump sum amount of £17,700)
premium, classic plus or nuvos £7,300
alpha £7,300 (this limit may be reduced if the member is also buying EPA)

7. If a member of classic, classic plus, premium or nuvos moves into alpha, they will only be able to make an option to buy added pension and/or EPA in alpha from the date they move into alpha (but alpha members cannot buy added pension via lump sum in their first 12 months of alpha membership). Please note: for a transition member, the scheme in which added pension is bought is the scheme which they are an active member of when they make the option. The limit for alpha added pension and EPA is £7,300 and is separate from the limit for classic, classic plus, premium and nuvos. It will be possible for members to buy the maximum amount in alpha even if they have already bought the maximum amount in classic, classic plus, premium, or nuvos).

8. Purchasing EPA during 2021/22

alpha members cannot buy EPA if they have bought the maximum amount of added pension. There is no limit on how much EPA a member can buy, however it counts towards the limit of added pension allowed.

9. Members who wish to take out a contract to buy added pension or an EPA by monthly contributions for 2021/22 must send their completed application form to the Scheme Administrator (MyCSP) by 12 March 2021.

10. Information for members

You should signpost members to the following information about added pension and EPA on the Civil Service Pensions website. 

Website 

The dedicated Added Pension webpage provides information on all schemes and links to the support materials mentioned below.

The Added Pension leaflet contains information for members of classic, classic plus, premium and nuvos. Members of alpha should read section 2B of the alpha scheme guide

Taking Control of your Retirement Planning contains information about added pension and EPA for alpha members.

Calculators

The added pension calculators and EPA estimator enable members to see how much added pension and/or EPN can buy and how much it will cost.

Application forms

To apply for added pension or EPA, members must complete the relevant application form and return it to the address provided on the form.

Added pension application form

EPA application form

Contacts

If you have a question about the distribution of EPNs, or would like to receive them in a different format, please contact EPN@MyCSP.co.uk.

You can find electronic copies of the Employer Pension Guide, all current EPNs and forms in the Employer section of the Civil Service Pensions website.

This notice is for employers and should not be issued to scheme members.

Members can find information about their pension by visiting the member's section.

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