EPN665 - Changes to the partial retirement process
Audience
Pension leads
HR Managers
Payroll Managers
Summary
Further to EPN221, this EPN provides new information about the process of taking partial retirement.
From Wednesday 1 June, the CSP16 form is no longer in use. The purpose of this change is to prevent any unnecessary delays when making payment of a member’s benefits.
Actions
To note the change in the partial retirement process
To ensure that everyone who handles partial retirement applications receives this information
Partial retirement was introduced from 1 March 2008, enabling members who permanently reshape their job and reduce their pensionable earnings by at least 20%, to take some or all of the pension they have built up while continuing to work.
EPN204 explained Employers’ responsibilities in the partial retirement application process.
Previously, the Scheme Administrator (MyCSP) would send employers a CSP16 form, before final payment was made, to confirm that the member’s partial retirement was going ahead. You were required to confirm that the details on the CSP15 form remained correct.
From Wednesday 1 June, the CSP16 form will no longer be issued. Instead, the Scheme Administrator will send you a notification that partial retirement has been finalised once the member’s benefits have been put into payment. If at any time you become aware that the member’s partial retirement is not going ahead, please inform the Scheme Administrator immediately.
Please note: Before Wednesday 1 June, any partial retirement applications where a CSP16 form has been requested or is outstanding, must be submitted in line with the current process.
A revised partial retirement process chart is set out in Annex A (attached to this EPN). Please make sure that everyone who handles partial retirement applications receives this information.
The following points explain your other responsibilities within the process:
Timing of applications
When advising the Scheme Administrator of the start date of the reshaped job, please provide the exact date.
You must send the completed Scheme Administrator around four months before the member’s partial retirement date (or as soon as possible). This will enable us to process the paperwork, otherwise the member may be placed onto a reduced salary before the lump sum and pension has been awarded.
20% salary reduction
When working out the reduced salary, please ensure that the criteria for the 20% reduction are met, and that all data provided by you or your payroll provider is accurate.
A 20% reduction in hours does not always equal the required 20% reduction in salary, so please ensure you include additional allowances or shift pay in your calculations.
CSP15 Form
You must ensure that the CSP15 form is completed in full so the Scheme Administrator has all the information they need to process the award.
You must agree and authorise all partial retirement applications before sending them to the Scheme Administrator. They cannot provide the quotation without confirmation that you agree to the job reshaping, and that the member’s earnings will reduce by at least 20%.
Members must not send the form directly to the Scheme Administrator, as this will delay the implementation of the partial retirement.
Revision or cancellation of applications
You must remind the member to consider partial retirement carefully, paying particular attention to the calculator and quote before making their final decision. If the partial retirement does not go ahead, it is your responsibility to inform the Scheme Administrator.
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
