nuvos scheme guide

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Nuvos Scheme Guide 1

Note: Where we have had to use technical terms, we show them in bold and explain them below.

This guide contains useful details about nuvos. nuvos  is one of the pension schemes in the Civil Service pension arrangements. 

The arrangements cover all civil servants and certain groups of non-civil servants, subject to eligibility.

nuvos was closed to new entrants from 1 April 2015. After 31 March 2015, with the introduction of alpha, no person is in or is eligible to be in pensionable service under nuvos unless the person is a protected member. This is because all other members would have transitioned into the alpha scheme from 1 April 2015.

A protected member means a full protection member, a tapered protection member or an ill-health protection member.

If you have transitioned into alpha and you want to find out more about how this affects your pension, you should read the alpha scheme guide found here: https://www.civilservicepensionscheme.org.uk/members/alpha-guide/

Introduction

This is your guide to the valuable range of benefits to which you may be entitled as a member of nuvos.

Pensions are important to us all, no matter how far off your retirement may be. Even if you are now in your teens or twenties, you will appreciate having made an early start on your pension when

you come to collect it! Our pension arrangements give you the opportunity to build up a retirement income at fairly low cost. The earlier you start the better!

This booklet provides a guide to the main conditions and provisions of nuvos. It does not cover every aspect – the full details are contained in the rules, which are the legal basis of the scheme. Nothing in this booklet can replace the rules, and if there is any difference, the rules will apply.

The rules of nuvos are set out in section III (the 2007 section) of the Principal Civil Service Pension Scheme (PCSPS). This is a statutory scheme made under the Superannuation Act 1972. You can find the rules on our website, or get a copy from the Scheme Administrator (MyCSP). This booklet is based on the rules current at the time of writing and there is no guarantee that any part of the rules will not change in the future.

nuvos is a registered scheme under the Finance Act 2004, and is governed by UK legislation. This booklet is based on the law current at the time of writing. You should be aware that tax rates and limits may change in the future. We have tried to

use as little jargon as possible but we have defined some technical terms when they appear in the text. These are shown in bold, you can find an explanation of these terms in the technical terms at the end of this booklet.

Membership

1. What is nuvos?

nuvos is an occupational defined benefit pension scheme. It provides a way of saving for your retirement. Over the years, you and your employer both make contributions to the scheme. When you retire we pay you the pension you have built up each year while you have been in the scheme. nuvos provides:

  • a pension linked to your pensionable earnings and increased each year in line with inflation;
  • an option to take a tax free lump sum in exchange for part of your pension;
  • special early retirement terms, subject to certain conditions, if you are forced to retire early because of ill health;
  • a death benefit of twice your final pay if you die in service;
  • a pension for your husband, wife, civil partner or partner after your death;
  • a pension for your dependent children after your death;
  • a number of options to increase your pension if you wish.

2. Who can join?

Most people who were employed in the Civil Service on a permanent or fixed-term contract, and joined between 30 July 2007 and 31 March 2015,  will have joined nuvos.

After 31 March 2015, with the introduction of alpha, no person is in or is eligible to be in pensionable service under nuvos unless the person is a protected member.

This is because all other members would have transitioned into the alpha scheme from 1 April 2015.

A protected member means a full protection member, a tapered protection member or an ill- health protection member.

If you have transitioned into alpha and you want to find out more about how this affects your pension, you should read the alpha scheme guide found here: https://www.civilservicepensionscheme.org.uk/members/alpha-guide/

3. I opted out of the Civil Service pension arrangements. Can I join nuvos now?

You will only be able to rejoin nuvos if you had opted out of nuvos and are a protected member of nuvos. If, had you not opted out, you would have transitioned into alpha then you will only be able to opt in to alpha or join partnership.

A protected member means either a full protection member, or a tapered protection member.

4. I don’t work for the Civil Service, but for an organisation called a “Schedule"

Throughout this booklet, “Civil Service” includes not only UK Government departments and agencies but also some other organisations that are able to take part in the Civil Service pension arrangements. These organisations are sometimes referred to as “Schedule 1 bodies” because they are listed in Schedule 1 to the Superannuation Act 1972, which governs the Civil Service pension arrangements.

5. I no longer want to be a member of nuvos. Can I opt out of the scheme?

If, having joined nuvos, you wish to ‘opt out’, you can do so at the next available pay period.

We advise you to think very carefully about what you are giving up. Before you make a decision, please look at our ‘Opting out’ fact sheet found here: https://www.civilservicepensionscheme.org.uk/members/member-forms/

You may also wish to consult an Independent Financial Adviser (IFA).

If you decide to opt out you can download the latest version of the Opt-Out here: https://www.civilservicepensionscheme.org.uk/members/member-forms/ or you can ask the Scheme Administrator (MyCSP) for a copy. You should send the completed Opt Out form to your employer.

Please note: The Pensions Act 2011 requires all employers to automatically re-enrol most workers who are not in a qualifying pension scheme periodically (usually every three years), from the employer’s automatic enrolment staging date. The Civil Service applies this to all workers who are not currently in a qualifying pension scheme. Your employer will be able to tell you when this is.

6. Can I change my pension arrangements?

7. I already have a pension from a previous employer

If you were previously in an occupational pension scheme, you may be able to transfer your pension into nuvos (see questions 38-40). If you were previously in a personal pension, you may be able to transfer it into nuvos or you may want to continue to pay into it as well as being in nuvos. You may want to take independent financial advice about your options. You should note, though, that if you want to transfer a previous pension into nuvos you must apply to do so within your first 12 months of employment.

38. I have a pension from another scheme. Can I bring this into nuvos?

What does nuvos cost?

8. How much will I pay?

9. Do I get tax relief?

Your employer takes your contributions from your pay before working out the tax, so you will automatically receive full income tax relief. This is subject to HMRC limits.

10. How much will my employer pay?

11. Are all my earnings pensionable?

As a general rule, only permanent items of pay are pensionable. This will include any allowances that your employer tells you are pensionable, but will not include payments such as overtime.

Bonus payments do not normally count as pensionable earnings.

You may also have some non-cash pensionable earnings. For example, some people’s pensions will take account of a uniform allowance, and others may have an allowance for accommodation. In these circumstances you and your employer will also pay contributions based on the equivalent cash value of this non-cash pensionable earnings. If you are on reduced pay during maternity leave (and in certain other circumstances) your employer will make contributions based on the pay that you would have expected if you were not off work.

You will usually make your contributions based on your reduced pay.

There is no limit on pensionable earnings in nuvos. However, if you have any linked benefits calculated on a final salary basis (see questions 41 - 43) then the earnings cap will normally apply to those benefits.

41. I have a preserved pension from the previous Civil Service pension arrangements – what happens to that?

12. What about National Insurance and State pension?

The new State Pension was introduced on 6 April 2016, for people reaching State Pension age from that point onwards, replacing the previous two part state pension arrangements – Basic Pension and earnings related *State Second Pension (S2P).

Members of the scheme were contracted-out of S2P between 6 April 1978 and 5 April 2016, when contracting out ceased.

Due to the contracted out status between 1978 and 2016, members of the scheme paid lower rates of National Insurance contributions and did not build up entitlement to the S2P element of the previous two part state pension.

Your new State Pension amount will take into account any period you were contracted out of S2P, plus your National Insurance record between 6 April 2016 and your State Pension age.

* The State Second Pension (S2P) was previously known as the State Earnings-Related Pension (SERPS).

What benefits will I get?

13. When do I get my pension?

The pension age for most members of nuvos is 65. This is the earliest that you can usually take your pension without it being reduced for early payment. You can apply to draw your pension at any time from the age of 55 but because your pension will be paid for more years, it will be reduced if you take it before pension age (see question 61). It will be increased if you draw it after pension age.

61. If I retire early what happens to my pension benefits?

14. Are there any conditions for receiving a pension?

You will only be able to have a nuvos pension if you meet the qualifying conditions in the scheme rules. As a general rule, this means that you have to work for a Civil Service Pensions employer for a minimum of two years. Any service you have transferred in from an occupational pension scheme (see question 38-40) counts towards the two year requirement.

If you have transferred a personal pension into nuvos, or if you leave at or after pension age, there is no minimum (“qualifying”) period needed before you are entitled to a nuvos pension.

See the section on Leaving before pension age (questions 59-65) for more information about leaving early.

59. What options do I have if I resign after a few months?

15. How do you work out my pension?

Your pension will build up each year whilst you are a scheme member. Each scheme year (1 April to 31 March) your pension will build up at the rate of 2.3% of your pensionable earnings. (Note that this rate could be changed in the future, but no changes will happen without full consultation with the Civil Service unions.) From 1 April 2014 your pensionable earnings are the pensionable pay you earn during the scheme year. Prior to this, we used the pensionable pay that you received during the scheme year, irrespective of when you earned that pay.

16. Will the pension I have built up increase in value?

The Scheme Administrator (MyCSP) will calculate the balance of your nuvos pension every March, and then increase it in April. This increase reflects the rises in the cost of living. This increase applies every year, whether you are in service, have left with a preserved pension, or your pension is in payment.

Example

Simon joined the scheme on 1st April, on pensionable pay of £17,750. His pensionable pay went up to £18,250 on 1st October, so his pensionable earnings in his first year were £18,000. He earns £414 (2.3% of £18,000) of pension. The following October his pensionable pay went up to £18,500, so his pensionable earnings in his second year were £18,375. In that year he earns pension of £422.63. The pension earned in the previous year has been increased by 2.5% in line with rises in the cost of living, so by the end of year 2 he has earned a total of £846.98 of annual pension. Each year he continues as a nuvos member he will build up further pension this way.

17. What happens if I join or leave part way through a scheme year?

You will earn pension that year based on the pensionable earnings you actually earn.

Example

Sophia has pensionable pay of £24,000. As at 31st March she had earned nuvos pension of £7,500. Sophia leaves on the 31st July. In the four months from April to July her pensionable earnings are £8,000, so she will be credited with a further £184 of nuvos pension (2.3% of £8,000), bringing her total entitlement to £7,684 of annual pension.

18. What happens if my pay is adjusted after the end of the scheme year?

From 1 April 2014 , any adjustment to your pay will be reflected in your pension earned in the year the pay was due, not the year it was actually received.

Example

Alan receives arrears of pay in May, from a pay settlement backdated to the previous 1 January.

His nuvos pension for the previous year ending 31 March, will be increased to reflect his higher rate of pay from 1 January.

19. Is there any limit to the size of my pension?

There is a limit, but it is unlikely to affect you unless you have very long service. Your pension (excluding any added pension that you have bought) cannot be more than 75% of your highest scheme earnings. For this purpose, highest scheme earnings will be the highest of:

  • your pensionable earnings in your final year;

or

  • your highest pensionable earnings in any of the last 10 scheme years; or
  • your highest average of three consecutive years’ pensionable earnings.

In order to make this comparison, your pensionable earnings from previous years will be increased in line with rises in the cost of living.

Any pension you already have from the Civil Service pension arrangements will also count against the 75% limit (see question 45).

Example

a. Fred’s earnings dropped as he approached retirement because he stopped doing shift working. His final year’s pensionable earnings were £24,000. But two years earlier, his pensionable earnings had been £30,000. So Fred’s pension cannot be more than 75% of £31,518 (£30,000 uprated by inflation of 2.5% a year), i.e. £23,639 a year.

45. How does my preserved pension, linked pension or transferred in service affect the maximum pension I can get from nuvos?

20. Can I have a tax-free lump sum?

At the time you draw your pension you can choose to give up part of your pension for a tax-free lump sum. This is called “commuting” pension for lump sum and is subject to limits set by HMRC.

Your pension will be reduced by £1 a year for every £12 you take as a lump sum.

You can find a calculator here:

https://www.civilservicepensionscheme.org.uk/members/member-calculators/

This shows the maximum lump sum for a given amount of pension and the effect that taking a lump sum would have on your remaining pension.

You can find out how much lump sum you can take, and the effect it will have on your pension by using the calculator here: https://www.civilservicepensionscheme.org.uk/members/member-calculators/

Examples

a. Jane retires with a pension of £10,000 a year. She decides to take a lump sum of £36,000. So her pension will be reduced by £3,000 a year (£36,000/12), giving her a pension of £7,000 a year.

b. Tom retires with a pension of £18,000 a year. He uses the online calculator to work out that he could take £77,143 as tax free cash, (£18,000 x 30/7), but if he does, his pension will be reduced to £11,571 a year (£18,000 - £77,143/12).

21. What if I work part time?

Your pension will build up exactly the same way, based on your pensionable earnings each year.

Example

Marjorie has worked 20 years full time but decides to change to part time working. She had built up nuvos pension of £9,000. In her last year of full time working her pensionable earnings were £42,000 so her pension earned that year was £966. In her first year of part time working her pensionable earnings were £30,000 so her pension earned that year was £690. Her pension earned in previous years would continue to go up each year in line with rises in the cost of living, just as it did when she was working full time.

22. What if I have periods off work?

You can usually only pay contributions and build up pension in the scheme if you are actually working or if you are on paid leave. If you are on unpaid leave of any sort, then you will generally not receive pensionable earnings for that period. However, there are some exceptions.

If you are on certain types of maternity, paternity or adoption leave on reduced pay or no pay, you will only pay contributions based on the pay you are actually receiving, but you will build up nuvos pension as if your pensionable earnings were at the usual level.

If you are on paid sick leave, you will build up nuvos pension as usual. If your pay reduces to half rate, you will still build up pension as if your pensionable earnings were at the full rate.

However, sick pay at pension rate does not count as pensionable earnings.

If you are on a career break, or any other form of special unpaid leave, you will not build up any nuvos pension during that period, but you would count as being “in service” if you were to die (see questions 46 and 49).

Examples

a. Brendan is on long-term sick leave after a car accident. He is on full pay until June, at his normal earnings of £36,000. Then he goes onto half pay until December, but he is on unpaid sick leave from January to March. His pensionable earnings that year will be counted as £27,000, i.e. 9 months at £36,000.

b. Janet is on contractual maternity leave until July, then starts a career break. She will build up nuvos pension that year based on her normal pensionable earnings from April to July. The nuvos pension she has built up will continue to increase each year in line with the rises in the cost of living while she is on her career break.

46. What happens if I die in service? 49. What happens if I die without having made a nomination?

23. How will I know how my pension is building up?

Each year the Scheme administrator (MyCSP) will send you an Annual Benefit Statement (ABS).

ABSs provide members with a summary of their Civil Service pension benefits, up to the date of the statement each year.

When you tell your employer that you are planning to retire and take your pension, the Scheme Administrator (MyCSP) will send you a statement of the benefits payable to you.

24. How do you pay my pension?

You will receive an annual pension and, if you choose to take one, a one-off lump sum. Your lump sum will be paid direct to your bank or building society account.

Your pension will be paid every month, in arrears, directly into your bank or building society account. Your pension will be treated as earned income for tax purposes; any tax that is due is taken off before the pension is paid.

25. Will you increase my pension?

Pensions in payment may increase every year in line with the cost of living. All pensioners aged 55 or over get these increases. Preserved benefits are also increased up to the date they become payable.

You will also receive the ‘cost of living’ increases if you are under 55 and if you are retired because of ill health.

Cost of living increases are also added if:

  • a pension is paid to a widow, widower, surviving civil partner or partner; or if
  • a pension is paid to, or in respect of, a child.

Working later in life

26. What if I want to work beyond pension age?

If you draw your pension later than age 65, your pension will be increased to reflect the late payment. Your annual benefit statement will show the “late retirement addition” each year. However, you cannot build up any further pension in nuvos from your 75th birthday, even if you are still working.

27. Can I carry on working after I draw my pension?

You cannot draw your pension and carry on working for a Civil Service pensions employer unless you meet the conditions for partial retirement (see question 29) or you are over age 75.

29. What is partial retirement?

28. What happens if I’m re-employed in the Civil Service after drawing my pension?

If you have any Civil Service pension in payment, whether from nuvos, classic, premium or classic plus, and you are re-employed by a Civil Service pensions employer, your pension may be abated (reduced), unless you are over age 75.

In general, your pension will be abated if your annual rate of re-employed pensionable earnings and your pension together come to more than your pensionable earnings in the twelve months immediately before your pension came into payment, although this may differ slightly depending on which scheme your pension is being paid from.

If you are re-employed, and have a preserved Civil Service pension from an earlier period of service, if you receive that pension while still working it may also be abated in the same way.

If you are considering re-employment after drawing your pension you should contact the Scheme Administrator (MyCSP) for further information about the impact on your pension.

You can also find out more from the leaflet “What is abatement?” which you can download here: https://www.civilservicepensionscheme.org.uk/members/publications/

29. What is partial retirement?

In some circumstances you may opt to draw all or part of your pension while remaining in service.

This is called “partial retirement”. You may only choose to do this if your annual rate of earning is reduced by at least 20%, for example because you have reduced your hours. Please note that there is no duty on your employer to provide a job that will enable you to take partial retirement. You should note, too, that your pension will be subject to abatement (see question 28).

28. What happens if I’m re-employed in the Civil Service after drawing my pension?

30. Can I take partial retirement before pension age?

If you meet the conditions referred to in question 28, you can take partial retirement at any time from your 55th birthday. However, if you take your pension before pension age it will be reduced because your pension will be paid for more years. It may also be subject to abatement.

You should note that once you have taken partial retirement, if you then have to retire on ill-health grounds before pension age (see question 63) your pension will not be enhanced. Similarly, if you were to die in service before pension age (see question 46), any pension payable to your family would not be enhanced.

46. What happens if I die in service? 63. What happens if I am too ill to work?

Boosting your pension

31. Can I pay more to boost my pension?

You have a number of options to increase your pension.

  • You can buy added pension in the scheme.
  • You can pay Additional Voluntary Contributions (AVCs).
  • You can contribute to personal pension outside of the Civil Service arrangements.

Tax relief is available on your contributions up to a maximum of your UK taxable earnings, or £3,600 if you earn less than that. However you will have to pay additional tax if all your pensions increase in value by more than the Annual Allowance, or if their total value is more than the Lifetime Allowance. You can find out more about these tax allowances on: www.hmrc.gov.uk and in our booklet “Your pension and tax”.

You should also note that you may not be able to use a lump sum from another pension arrangement to make additional pension contributions of any kind. This is due to tax rules on “recycling”; you can find more information on the HMRC website.

32. What is added pension?

Added pension is an additional pension that you can choose to buy. When you retire you can choose to give up some of your added pension to take a lump sum.

There is a limit to the amount of added pension you can buy in a scheme year. This limit will go up each year in line with rises in the cost of living.

The Scheme Administrator (MyCSP) will be able to tell you what the current limit is.

33. Can I buy added pension for my family?

You can choose to buy added pension either just for yourself, or for yourself and your family. You cannot choose to buy added pension only for your family.

34. How much does it cost?

The cost of added pension will depend on your age. You can get an estimate by using the calculator on the Civil Service Pensions website.

If you do not have access to the website you can ask the Scheme Administrator (MyCSP) to tell you how much it will cost.

35. What do I get for my money?

You will get an amount of pension added to your nuvos pension that will increase each year in line with rises in the cost of living. When you draw your pension your added pension will be combined with your nuvos pension.

Our added pension calculator which will give you an idea of the cost of buying added pension. Visit: https://www.civilservicepensionscheme.org.uk/members/member-calculators/

36. How do I pay for added pension?

You can choose to pay by monthly deduction from your salary, or by lump sum. If you choose to pay by monthly deduction, you can either choose a set amount (e.g. £20 each month) or a set percentage of your salary (e.g. 5% each month).

You should note that if you decide to pay a set amount, it will buy a smaller amount of added pension in future years because the rates are age-based. If you want to go on buying the same amount of pension each year, you will need to increase your contribution amount each year.

If you choose to pay by monthly deduction from salary, you must do so for the full scheme year, starting on 1 April, except in the year you start work and the year you leave. You can choose to make an open-ended commitment to go on contributing every month, until you leave or choose to cancel it.

Alternatively, you may pay by lump sum, but not in the first 12 months after joining. You can make one lump sum payment each year. This lump sum payment can be in addition to any monthly deductions you are paying.

37. What are Additional Voluntary Contributions?

The Civil Service Additional Voluntary Contributions Scheme (CSAVCS) is a defined contribution scheme where you pay contributions to the pension provider for investment in a fund or selection of funds. You can then use the accumulated investment fund to provide you with an income and/or lump sum in retirement.

You can pay Additional Voluntary Contributions (AVCs) to the CSAVCS. The provider is Legal & General.

AVCs help you to build up an additional pension pot which you can use to take an income and/or lump sum from age 55 (or 50 if you had a CSAVCS before 6 April 2006).

You can take up to 25% of your fund as a tax-free lump sum subject to the Lifetime Allowance. You do not have to take your CSAVCS benefitshere: https://www.civilservicepensionscheme.org.uk/members/partnership-csavc-concord/

Transferring in other pensions

38. I have a pension from another scheme. Can I bring this into nuvos?

You may only apply to bring a transfer into nuvos within your first twelve months of pensionable service.

If you tell the Scheme Administrator (MyCSP) that you would like to consider transferring your pension from a previous scheme, they will ask your previous employer for a “transfer value” quote.

Your Scheme Administrator (MyCSP) will then give you an estimate of the amount of nuvos pension that this will buy.

Different arrangements (and time limits) will apply depending on whether or not your previous scheme was in the Public Sector Transfer Club (“the Club”). The special arrangements for Club schemes are explained in question 39.

39. My previous scheme was not in the Club; what arrangements apply?

We can only accept a transfer value if your previous scheme gives certain undertakings. If your previous scheme will not give these, we cannot accept a transfer value.

If the transfer value is accepted, it will buy you a defined amount of nuvos pension which will increase in line with rises in the cost of living and be payable when you retire.

The maximum amount of nuvos pension you can buy through a transfer in is the lesser of:

  • 50% of your pensionable earnings at your start date; or
  • n/60 of your pensionable earnings at your start date, where “n” is your age minus 18.
  • If you have a preserved Civil Service pension that will also be set against this limit (see example c).

If you are working part time, it will be your actual pensionable earnings, not the full time equivalent, which is used to work out the maximum you can transfer in.

Examples

a. Ellen joins nuvos at age 45, on a pensionable salary of £40,000. She wants to transfer in service from a previous scheme. The maximum she can buy through a transfer in is £18,000 (27/60 x £40,000) (27=45-18) of nuvos pension. The transfer value she has been quoted from her previous scheme is enough to buy £7,500 of nuvos pension so she is able to go ahead with the transfer.

b. Mohammed joins nuvos when he is 62, on a part time salary of £10,000. He has a frozen pension from his last employer. The transfer value would buy him £6,000 of nuvos pension so he cannot go ahead with the transfer, as this is more than 50% of his pensionable earnings.

c. Joanna joins nuvos when she is 40, on a salary of £30,000. She has a preserved pension in premium based on 10 years’ service. The biggest transfer value she can bring into nuvos is one that would buy £6,000 of nuvos pension (12/60 of £30,000) (12=40-18-10).

40. My previous employer’s scheme is in the Public Sector Transfer Club. What does this mean?

The Public Sector Transfer Club offers employees who move between Club employers the opportunity to transfer their pension benefits on special terms. Club terms are only applied when someone moves employment on a voluntary basis.

If you want to bring in a transfer from a Club scheme, you must apply to do this within 12 months of being eligible to join nuvos.

Any Club transfer in will buy you benefits calculated on a final salary basis, and with a pension age of 65. (See question 42 for an example showing how this is worked out).

Further information about the Club can be found here: https://www.civilservicepensionscheme.org.uk/members/public-sector-transfer-club/

42. What happens if I link my preserved pension to my current earnings?

41. I have a preserved pension from the previous Civil Service pension arrangements – what happens to that?

Unless you previously left with a compensation package under the Civil Service Compensation Scheme, you may choose to “link” your preserved pension to your current earnings.

You will have been asked if you are interested in linking your preserved pension on the Pension Choices form you received when you first joined nuvos. The option to link your preserved pension to your current earnings must be made within 12 months of joining nuvos.

Please note: whether or not you link your preserved pension to your current earnings, it will be taken into account when working out the maximum pension you can have from nuvos (see question 45).

45. How does my preserved pension, linked pension or transferred in service affect the maximum pension I can get from nuvos?

42. What happens if I link my preserved pension to my current earnings?

If you choose to link your previous pension, your preserved pension will be converted into a service credit (in years and days) in nuvos. The service credit will take into account that the pension age for your preserved pension will become 65. Your linked pension will come into payment at the same time as your nuvos pension.

When you take your nuvos pension benefits, the linked final salary element of your pension will be worked out on your final pensionable earnings at that time, by dividing the service credit by 60 and multiplying by your final pensionable earnings.

Final pensionable earnings means the best of:

  • pensionable earnings in your final 12 months of employment; or
  • the highest pensionable earnings in any of the last four scheme years; or
  • the highest average pensionable earnings in any three consecutive scheme years ending up to 10 years before the retirement date.

Note your linked pension will usually only be worked out on earnings up to the earnings cap; any earnings above this limit will not count for your pension. You can find out more about the current limit from the Scheme Administrator (MyCSP).

Examples

a. Gina brought a Club transfer into nuvos which bought her a service credit of 10 years. She leaves after 5 years, when she has final pensionable earnings of £60,000, and has built up a nuvos pension of £6,000. So her total pension will be £6,000 + (10/60 x £60,000), that is, £16,000 a year.

b. Dan had a preserved pension in classic which he chose to link to his nuvos pension, and this gives him a service credit of 12 years. When he retires he has built up a pension of £4,000 in nuvos, and he is working part time. His actual pensionable earnings are £14,000, but the full time equivalent rate is £25,000. So his pension will be £4,000 + (12/60 x £25,000), giving him a total pension of £9,000 a year.

43. What if I choose not to link my preserved pension from classic, classic plus or premium?

If you choose not to link the two, your earlier pension will continue to be worked out based on your final salary when you previously left that scheme. Your earlier pension will be payable at your pension age in the previous scheme, which will usually be age 60. You may bring your preserved pension into payment at your pension age in that scheme, without reduction for early payment, but it will be subject to abatement if you are working for an employer covered by the Civil Service pension arrangements. For more information on this, see question 28.

28. What happens if I’m re-employed in the Civil Service after drawing my pension?

44. I have a preserved nuvos pension: what happens to that?

When you rejoin nuvos, your preserved pension will normally be automatically “aggregated” with your current pension. However, you may choose not to have the two pensions aggregated if you wish.

If you aggregate the two, then your earlier pension will count for all purposes, such as ill health retirement, but you must take all your pension at the same time (unless you draw some pension on partial retirement terms, see questions 29 and 30).

You will need to think carefully about your choice particularly if your preserved pension includes benefits calculated on a final salary basis (see questions 41-43).

Example

Greg has a preserved nuvos pension which includes a Club transfer in. When he last left the Civil Service, his final pensionable earnings were £45,000. He has re-joined the Civil Service at a lower grade, on pensionable pay of £30,000. He does not think that his current pensionable pay will increase above his earlier pensionable earnings before he retires so he chooses not to aggregate his previous nuvos pension. (The nuvos element of it will continue to go up in line with the rises in the cost of living, but the part of his pension bought by the Club transfer will be higher if it remains linked to his previous higher salary).

29. What is partial retirement? 41. I have a preserved pension from the previous Civil Service pension arrangements – what happens to that?

45. How does my preserved pension, linked pension or transferred in service affect the maximum pension I can get from nuvos?

Your pension (excluding any added pension that you have bought, but including any pension bought by a transfer value) cannot be more than 75% of your highest scheme earnings (see question 19).

If you have any other pensions from the Civil Service pension arrangements these will count against the 75% limit, whether or not you have chosen to link these pensions. Any pensions worked out on a final salary basis will count against your pension limit on the basis of N/60 x 100%, where N is the years of service used to calculate the final salary pension.

Examples

a. Maggie has a preserved Civil Service pension based on 15 years’ service. This will “use up” 15/60, i.e. 25% of her nuvos limit. So the maximum amount that Maggie can earn from nuvos is 50% (75% - 25%) of her highest scheme earnings.

b. Huw is receiving a Civil Service pension based on 45 years’ service. He cannot build up any benefits in nuvos because 45/60 uses up his full 75% limit.

c. Michelle has chosen to link a previous Civil Service pension which bought her a 30 year service credit in nuvos. She is working part time, and her highest scheme earnings are £4,000. So the maximum pension she can have from her nuvos service is £1,000 (because her service credit has already used up 50% of the maximum).

Benefits for your dependants

46. What happens if I die in service?

The Scheme Administrator (MyCSP) will pay a lump sum, normally to the person or people you have nominated. Your Annual Benefit Statement (ABS) shows your nominee(s).

The lump sum will be the greater of:

  • twice your final pay less any lump sums already paid from any section of the Civil Service pension arrangements;

or

  • five times the pension you have built up (including any added pension you had bought), less any pension (but excluding any lump sum) already paid from nuvos.

For this purpose, final pay means the better of:

  • your pensionable earnings in your final year;

or

  • your highest pensionable earnings in any of the last 10 scheme years (with earlier years uprated in line with rises in the cost of living).

47. What if I die after leaving the scheme?

If you die after leaving the scheme, your family or representative should contact the Scheme Administrator (MyCSP). If you die within five years of starting to draw your pension, the Scheme will pay a lump sum representing the balance of five years’ pension (including any added pension you had bought) to the person or people you have named. If you are over 75 when you die, we cannot pay a lump sum due to tax rules. So any outstanding balance will be paid annually in arrears to your nominee(s) as a pension until the five-year period has expired.

If you leave the scheme and then die before drawing your pension, there will usually be a payment to your nominee(s) of a lump sum of five times your preserved pension (including any added pension you had bought), increased in line with rises in the cost of living. from the date you left until the date of your death.

Examples

a. Jenny died two years after she retired. She had a pension of £15,000 a year. A lump sum of £45,000 will be paid to her nominee.

b. Patrick left the scheme when he was 40, with a pension entitlement of £5,000. He died five years later, by which time his pension entitlement had grown with inflation to £5,600. As Patrick has not received any pension payments his nominee will be paid a lump sum of £28,000.

48. How do I name someone to receive the lump sum when I die?

New entrants can name the person (or people) on the Pension Choices form in their starter pack. If you want to change your nominee at any time, you can download a form here: https://www.civilservicepensionscheme.org.uk/members/member-forms/ or ask the Scheme Administrator (MyCSP) for a Death Benefit Nomination form.

If you decide to name more than one person, you should say how much you would like each person to receive (e.g. 50% or half). If you don’t say how you want it shared between them, the Scheme Administrator (MyCSP) will pay each person an equal share.

If you name your husband, wife or civil partner and you then get divorced or your civil partnership is dissolved, your nomination form will become invalid and the lump sum will not be paid to your former husband, wife or civil partner. If you still want him or her to receive the lump sum, you must complete a new form after the date of your divorce or dissolution to nominate them again. Note that if you are legally separated but not divorced, a nomination for your husband, wife or civil partner will still be valid.

It is your responsibility to keep your nomination under review and update it whenever necessary. The Scheme Administrator (MyCSP) cannot pay the lump sum to a person other than your nominee(s), though if there are good grounds for considering it is not appropriate to pay the sum to your nominee it can instead be paid to your personal representative, i.e. the person responsible for sorting out your affairs after your death. Your annual benefit statement shows your current nominee(s).

49. What happens if I die without having made a nomination?

The Scheme Administrator (MyCSP) will pay any lump sum that is due to the executor of your affairs after your death.

50. Does my husband, wife or civil partner get a pension?

We will pay your surviving husband, wife or civil partner a pension if you die while in service (providing you had been an active member for at least 12 months) or if you die after having left with a preserved pension or with a pension in payment.

Their pension entitlement is usually worked out as 37.5% of your pension, including any added pension you have bought for yourself and your family, and any pension bought by a transfer in from another scheme.

If you die after receiving an enhanced ill-health pension, the pension for your surviving husband, wife or civil partner will be the same as if you had died in service (see question 51).

If you have commuted part of your pension, this will not affect the pension for your husband, wife or civil partner as this will be based on your pension before you decided to commute.

If your husband, wife or civil partner is more than 12 years younger than you, then their pension will be reduced to reflect the fact that it is likely to be in payment for a longer time.

51. How are pensions for my family worked out if I die in service?

If you die in service we will enhance your pension before we work out the pension payable to your family. The enhancement will be worked out by multiplying the earned element of your nuvos pension by n and dividing that by the number of years you were contributing to nuvos. n will be 10, or the years until you would have been 65, whichever is less. However, the enhancement cannot more than double your earned pension, or take the total pension above the 75% limit (see question 19). The “earned element” of your nuvos pension is the part that you build up every year. It does not include any pension from transfers in or linked service or any added pension.

Note that if you die in service after taking partial retirement (questions 29-30) then pension for your family will not be enhanced.

Once your husband, wife or civil partner is receiving a pension, it will continue for the rest of their life, a nd it will increase every April in line with rises in the cost of living.

Examples

a. Sylvia died in service at the age of 50 after 25 years in nuvos. The pension she had built up at the time of her death was £15,000. In order to work out her civil partner’s pension, Sylvia’s pension will be enhanced by (10 x 15,000/25) = £6,000. So her civil partner Mary will get a pension as if Sylvia’s pension had been £21,000, that is, a pension of £7,875 a year (37.5% of £21,000).

b. Gordon has a pension of £10,000, but he decided to commute (give up) £1,875 of his annual pension so he could have a tax-free lump sum of £22,500. The pension he receives is £8,125 a year. When Gordon dies, his widow will get a pension of £3,750 a year (37.5% of £10,000).

c. Philip died in service at the age of 62 after 12 years in nuvos. His pension from nuvos was £12,000, but he had also bought £2,000 of added pension for himself and his family. In order to work out his widow’s pension, his nuvos pension will be enhanced by (3 x 12,000/12) = £3,000, to £15,000.

So his widow Kathryn will get a pension of £6,375 a year (37.5% of £17,000 – Philip’s enhanced pension, plus the added pension he had bought).

d. Jack is killed in an accident at the age of 25, after 4 years in nuvos. He had built up a pension of £2,000. Jack wasn’t married but he had nominated a partner who was eligible to receive his pension. Paula will get a pension of £1,500 a year (37.5% of £2,000 doubled).

19. Is there any limit to the size of my pension? 29. What is partial retirement?

52. I am not married or in a civil partnership but I have a partner. Will they receive a pension?

If neither you nor your partner is married to anyone else or in a civil partnership, we may pay your partner a pension. The Scheme Administrator (MyCSP) works this out in the same way as the pension for a husband, wife or civil partner (see question 50). Your partner will also have to provide evidence that he or she was financially dependent on you, or that you were financially interdependent, at the time of your death. For more details on this, see the booklet ‘Pensions for partners: a guide’. This booklet is available here: https://www.civilservicepensionscheme.org.uk/members/nuvos/ or you can ask the Scheme Administrator (MyCSP) for a copy.

50. Does my husband, wife or civil partner get a pension?

53. Will my children get a pension?

We pay children’s pensions to your children and to any others who are financially dependent on you when you die. Pensions are paid to age 18 or, potentially, to age 23 if the child continues in full-time education or vocational training.

A pension may be payable for life to a child who is dependent due to serious disability; ask the Scheme Administrator (MyCSP) for more information about this.

The Scheme Administrator (MyCSP) works out a child’s pension as 30% of your pension entitlement if we pay a pension to your surviving husband, wife, civil partner or partner, or 50% if there is no such pension payable. If you leave more than two children who qualify for a pension MyCSP will reduce each child’s pension so they each get an equal share.

Example

Julie had a pension entitlement of £8,000 a year. She died leaving a widower and three children under the age of 23. Julie’s husband received a pension of £3,000 a year and each child receives a pension of £1,600 a year (one-third of 2 x 30% x £8,000).

54. Can I arrange for someone to get a share of my pension?

Before your pension comes into payment, you may choose to give up part of your pension in exchange for additional pension for a dependant after your death. This is called “allocation”. If you are interested in this option you should contact the Scheme Administrator (MyCSP) for further information.

Allocation of your pension will not affect the way any pension for another member of your family is calculated.

Example

Peter decides to allocate part of his pension to provide a pension for his mother after his death. His pension entitlement, before allocation, is £10,000 a year, but because of the allocation he has made, he receives pension of only £8,500. He dies leaving two dependent children, but no wife or partner. Each child would receive a pension of £5,000.

55. What happens if I am divorced?

If you are divorced, or your civil partnership is dissolved, the court will take into account any pension rights, and may make either an earmarking or attachment order or a pension sharing order
over your pension benefits. You can find out more about this from the booklet “Pensions and divorce, dissolution or annulment”, which you can download here: https://www.civilservicepensionscheme.org.uk/members/nuvos/ or obtain from the Scheme Administrator (MyCSP).

If you had previously nominated your husband, wife or civil partner to receive any lump sum death benefit, that nomination will become invalid at the date of your divorce or dissolution, so you should remember to make a new nomination. You can obtain the form to do this from the Civil Service Pensions website or from the Scheme Administrator (MyCSP).

56. Can my dependant have a lump sum instead of a pension?

If the pension falls within the HMRC limits on trivial commutation, your dependant may choose to have it commuted into a lump sum. Your dependant can find out more about this from the Scheme Administrator (MyCSP).

57. Will I get a refund if I have no dependants?

You can only have a refund of your contributions if you leave with less than two years’ service (see Leaving before pension age, question 59). If you leave service or die with an entitlement to pension, then no refund is payable.

59. What options do I have if I resign after a few months?

58. What if I get married, enter a civil partnership, begin a relationship that would meet the criteria for a partner pension or have children after I’ve left?

Providing you left with an entitlement to pension, and have not since then transferred your benefits out of nuvos (see question 60), then a pension will be payable to your family on your death, on the same terms and conditions as set out in previous questions.

60. What if I resign after two or more years’ service?

Leaving before pension age

59. What options do I have if I resign after a few months?

If you leave within one month of joining nuvos, or you leave after one month but within three months and you do not already have a preserved award, you will receive a refund of the contributions you have made which your employer will refund with your salary, less tax.

If you leave nuvos before pension age with more than three months' but less than two years' service (including any service you have transferred in) and do not already have a preserved award, the Scheme Administrator will give you the choice of:

  • a refund of your contributions, less tax and your share of the cost of reinstating you in the State Second Pension (where appropriate) for any service prior to 6 April 2016; or
  • a transfer value to another pension scheme

The Scheme Administrator will write to you about your options shortly after you leave. See the leaflet “Leaving nuvos before pension age with less than two years service” for more information.

Please note that if you have transferred a personal pension into the scheme, you will be treated as if you have two years’ service, so you will immediately become entitled to a preserved pension or a transfer. In these scenarios you will not be eligible for a refund of your contributions.

60. What if I resign after two or more years’ service?

If you have two or more years’ service (or you have transferred a personal pension into nuvos) you will be able to choose between a preserved (frozen) pension in nuvos, or taking a transfer value to another scheme.

If you preserve your pension, it will increase every year in line with inflation. You can choose to draw your preserved pension at any time after your 55th birthday, but if you take it before pension age it will be reduced because of early payment. If you draw it after your 65th birthday it will be increased for late payment.

Any added pension which you have bought will be treated in the same way as your nuvos pension.

61. If I retire early what happens to my pension benefits?

You can choose to bring your nuvos pension into payment at any time from your 55th birthday. If you choose to draw your pension before pension age, though, it will be actuarially reduced because of the early payment.

Note that your pension is reduced for life: it will not go back up to the full rate once you reach pension age. However, any pension payable to your dependants will be worked out as if your pension had not been actuarially reduced.

If you choose to bring your nuvos pension into payment early, then any added pension will also come into payment at the same time, and on the same basis – i.e. if your main pension is actuarially reduced because you are choosing to draw it early, your added pension will also be actuarially reduced. You cannot choose to take your added pension at a different time from your main nuvos pension.

In certain circumstances, if your employer allows this and meets the full costs to the scheme, you may exceptionally be allowed to draw your pension early (after the age of 55) without any reduction for early payment, or with a lesser reduction than normal.

62. What if I am made redundant?

Your employer will pay you compensation under the Civil Service Compensation Scheme for loss of employment. Your pension options will be the same as if you had resigned. You can draw your pension whenever you like after you are 55, but remember that we will reduce it because of early payment unless you are able, under the terms of your redundancy, to opt to give up some or all of your compensation to eliminate or reduce the reduction. Ask the Scheme Administrator (MyCSP) if you want more details.

63. What happens if I am too ill to work?

If you have to leave the Civil Service before pension age, and our medical adviser agrees that you cannot do your job because your health has broken down permanently, we may pay you your pension when you leave. In these circumstances the Scheme Administrator (MyCSP) will pay your pension without making any reduction for early payment.

Any added pension you have bought will also be brought into payment, without reduction, provided that you did not opt to buy it shortly before you are retired. The pension you are paid will also include any pension you bought by a transfer value, unless you are retired within 2 years of bringing in the transfer and we consider that you did not disclose a known health condition at that time.

You usually need to have worked for a Civil Service pensions employer for at least two years before you can qualify for an ill-health pension.

64. What if I am too ill to ever work again?

If our medical adviser considers that your ill-health is so severe that you are unlikely to work again, we may enhance your pension as if you had continued to work to 65. The enhancement will be worked out by dividing the earned element of your pension (see question 51) by the number of years you were contributing to nuvos, and multiplying that by the number of years from your date of retirement to your 65th birthday. However, the enhancement cannot take your total pension above the 75% limit (see question 19).

If you have already drawn part of your pension on partial retirement terms (see question 29) then you cannot have an enhanced ill-health pension.

Examples

a. Gurnam has to retire on ill-health terms at the age of 55 after 20 years in nuvos. His pension at that point is £7,500. The Scheme Medical Adviser (SMA) confirms that Gurnam is unlikely to be able to work again, so his pension is enhanced by £3,750 (£7,500/20 x 10), giving him a total nuvos pension of £11,250.

b. Alicia retires on ill-health grounds at 40 after 10 years in nuvos; her pension is £3,000. The SMA confirms that she is not expected to be able to work again, so her pension is enhanced by £7,500 (£3,000/10 x 25), giving her a total of £10,500.

19. Is there any limit to the size of my pension? 29. What is partial retirement?

65. What if I become ill after I have left the scheme?

If you are terminally ill, with a life expectancy of less than 12 months, you can apply to have your pension benefits commuted into a lump sum and paid immediately. The lump sum will be five times your pension. This will not affect how any dependants’ pensions are calculated.

66. What if I am injured on duty?

If you are injured or killed while you are on duty, Injury Benefit may be payable to you or your family to provide a guaranteed level of income. For more information on this, see the booklet “Injury Benefit scheme: a brief guide”, which you can download here: https://www.civilservicepensionscheme.org.uk/members/publications/ or get from the Scheme Administrator (MyCSP). Injury Benefit is provided under the terms of the Civil Service Injury Benefit Scheme, which is a separate arrangement from nuvos.

67. What if I am re-employed?

If you have a pension in payment from classic, classic plus, premium or nuvos, and you are re-employed by an organisation covered by the Civil Service pension arrangements, your pension will be abated (reduced) if your annual rate of pensionable earnings and your pension together come to more than your pensionable earnings in the twelve months immediately before your pension came into payment. If you are considering re-employment after drawing your pension you should contact the Scheme Administrator (MyCSP) for further information on the impact on your pension.

Your pension will not be affected if you are re-employed by an organisation not covered by the Civil Service pension arrangements.

You can also find out more from the leaflet “What is abatement?” which you can download here: https://www.civilservicepensionscheme.org.uk/members/publications/ or get from the Scheme Administrator (MyCSP).

Other information

68. Can I change my pension arrangements?

You have the opportunity to switch from nuvos to a partnership pension account, which is a defined contribution pension with an employer contribution. You can switch from nuvos to partnership, or from partnership to nuvos, at any point during the year, but you must give your employer at least two months’ notice in writing. You can only switch once in a 12 calendar month period. Further information and the switch form can be found here: https://www.civilservicepensionscheme.org.uk/members/civil-service-added-voluntary-contributions/partnership/switching-to-or-from-partnership/

You can choose to opt out of nuvos at any time. You must complete the Opt-Out form which is available here: https://www.civilservicepensionscheme.org.uk/members/member-forms/

If you do not have access to the Internet then the form is also available from the Scheme Administrator (MyCSP). The forms must be returned to your employer.

If you opt out within one month of joining nuvos, or after one month but within three months and you do not already have a preserved pension, you will receive a refund of the contributions you have made which your employer will refund with your salary, less tax.

If you opt out of nuvos before pension age with more than three months' but less than two years' service (including any service you have transferred in) and do not already have a preserved pension, the Scheme Administrator will give you the choice of:

  • a refund of your contributions, less tax and your share of the cost of reinstating you in the State Second Pension (where appropriate) for any service prior to 6 April 2016; or
  • a transfer value to another pension scheme.

You may rejoin nuvos at any time, if you are still eligible to be a member (see questions 2 and 3) by writing to the Scheme Administrator (MyCSP). You will be re-entered into nuvos from the next pay period.

2. Who can join?

69. Can the scheme rules change in future?

There is no guarantee that any part of the rules will not change in the future. Before we make changes to the rules, we consult with the Civil Service unions. Under the Superannuation Act we must get the agreement of the unions for any changes to the rules that affect benefits that members have already earned. Any changes we make to the rules are laid before Parliament.

70. Who should I contact if I have a query about my pension?

Your first contact should always be the Scheme Administrator (MyCSP) as they will hold your pensions records. If you do not know who they are, your employer will be able to provide you with their contact details, or visit https://www.civilservicepensionscheme.org.uk/contact-us/

71. Can the Scheme Administrator (MyCSP) give me advice about my options?

No, the Scheme Administrator (MyCSP) cannot give you advice. If you need advice you should contact an Independent Financial Adviser (IFA). A number of membership organisations provide access to financial advice, or you can find an adviser in your area on: www.unbiased.co.uk

72. Who manages the pension scheme?

The Scheme Manager is Cabinet Office.

73. Are there any trustees?

Because the scheme is set up by statute, not trust law, there are no trustees.

74. What do you do with the information you hold about me?

The Civil Service Pension Scheme arrangements take your privacy seriously. Full details of the types of personal data the Scheme holds, how it is used and whom it is shared with are set out in a privacy notice.

This notice can be found here: www.civilservicepensionscheme.org.uk/privacy-policy

The privacy notice also sets out your rights in connection with the personal data held about you; who to contact if you want to exercise those rights; have concerns about the way we handle your personal information; or, generally have any questions.

The information we hold is provided by your employer and it is important that you keep your employer up to date if anything changes; for example, if you move house or your relationship status changes.

Without this information being maintained, there could be delays in paying benefits to you or your dependants.

75. Can I lose my pension?

There are certain limited circumstances in which your pension could be withheld either completely or partly, such as if you were convicted of treason, of an offence under the Official Secrets Act 1911, or of an offence certified by a minister as likely to bring the Civil Service into disrepute. You could also lose pension if you owed the Civil Service money as a result of a criminal act. Family benefits may be withheld from any person convicted of the manslaughter or murder of the member.

Finding out more

76. Where can I get more information about my pension?

We have a range of booklets and leaflets covering all aspects of nuvos which can be found here: https://www.civilservicepensionscheme.org.uk/members/publications/

We have a range of booklets and leaflets covering all aspects of the Civil Service pension arrangements and associated benefits, all of which appear on this website.

Alternatively, you can ask the Scheme Administrator (MyCSP) for hard copies.

77. How do I find out more about State pensions?

You can find out more from the government website, including how to claim or enquire about your State Pension, at: www.gov.uk/state-pension

78. What if I have a complaint about my pension?

If you have any concerns you should raise them with the Scheme Administrator (MyCSP). Often, a phone call or an email will be enough. If you are dissatisfied with the way your concerns
have been handled you may decide to complain to the Scheme Administrator (MyCSP).There is further information available here: https://www.civilservicepensionscheme.org.uk/contact-us/

If the problem is not sorted out to your satisfaction, you can raise your concerns under the Internal Dispute Resolution (IDR) procedure. This is a statutory process that all occupational pension schemes must have in place. The Scheme Administrator (MyCSP) will investigate under Stage 1, and if you remain dissatisfied you can raise your concerns to the Scheme Manager (Cabinet Office), under Stage 2.

You can contact The Pensions Advisory Service (TPAS) at any stage during the IDR procedure.

TPAS is an independent organisation set up to help with sorting out disagreements between scheme members and the administrators or trustees of their scheme.

You can write to TPAS at:

11 Belgrave Road,
LONDON,
SW1V 1RB

For further information see their website: www.pensionsadvisoryservice.org.uk

79. What if my complaint is not resolved?

If you have gone through IDR and your complaint has still not been resolved satisfactorily, you can contact the Pensions Ombudsman. For more information see their website: www.pensions-ombudsman.org.uk

You can write to the Pensions Ombudsman at:

10 South Colonnade
Canary Wharf
E14 4PU

80. Are there any other organisations that look after pension schemes?

The Pensions Regulator is the statutory regulator for occupational pension schemes. Their task is to make sure that pension schemes are run legally. They also educate and inform and work with others to raise standards.

For further information including how to contact the Pensions Regulator see their website: www.thepensionsregulator.gov.uk

DWP operates a central tracing agency to help people keep track of any pension arrangements they had in the past. You can contact them through the DWP website www.gov.uk/find-pension-contact-details

Or write to them at:

The Pension Service
9 Mail Handling Site A
Wolverhampton
WV98 1LU

Tel: 0800 731 0193

Technical terms

Abatement, abated

If you are re-employed by the Civil Service after you have drawn your pension we may reduce or stop paying your pension. This is called abatement.

The Scheme rules require that your new salary and your pension, when added together, may not normally be more than your salary when you retired.

Active member

An active member is a nuvos scheme member who is in employment with a Civil Service employer.

Actuarially reduced

Members aged 55 or over with an entitlement to a nuvos pension can choose to retire early. Benefits are paid immediately but are reduced because they will be paid for longer. The reduction is determined by the scheme actuary.

Added pension

Added pension is an additional amount of pension that you can buy (see questions 30-35).

Annual Allowance

Annual Allowance is the maximum growth in the value of your pension savings each year that can benefit from tax relief. The Annual Allowance applies to your entire pension savings with UK registered pension schemes. So, if you have any other pension savings apart from your Civil Service pension, you must also take those into account to determine if you have a tax charge to pay.

Civil partner

This is someone of the same sex as you, with whom you have registered your relationship under the Civil Partnership Act 2004.

classic

classic is part of the Civil Service pension arrangements; it is a defined benefit occupational pension scheme based on final salary. It was open to civil servants from 1972 to 2002 and is now closed to new entrants. The name classic came into effect in October 2002.

Club

see Public Sector Transfer Club.

Commutation, commute, commuting

This means the exchange of pension for a lump sum.

Contracted out

Members who joined Civil Service Pensions before 6 April 2016 were contracted out of the State Second Pension (previously SERPS). This meant that they and their employer paid a lower rate of National Insurance contributions. Since 6 April 2016, Civil Service Pensions are not contracted out of the State Second Pension.

CSAVCS

Civil Service Additional Voluntary Contribution Scheme – is a defined contribution scheme where you pay contributions to the pension provider for investment in a fund or selection of funds. You can then use the accumulated investment fund to provide you with an income and/or lump sum in retirement.

Dependant

A dependant is a member of your family or anyone else who relies on you financially.

Earnings cap

The earnings cap only applies in nuvos to benefits calculated on a final salary basis. It is the maximum level of pay we will use when working out these pension benefits.

Family

Family means your husband, wife, civil partner or partner and your dependent children.

Final pay

Your final pay is the pay used to calculate the lump sum payable if you die in service.

Final pensionable earnings

Final pensionable earnings are the pensionable earnings used to work out any benefits (such as benefits from a Club transfer) which are worked out on a final salary basis.

HMRC

Her Majesty’s Revenue & Customs

Independent Financial Adviser

An Independent Financial Adviser (IFA) is a qualified person or firm that can give independent advice on matters such as life assurance and pensions. IFAs are regulated by the Financial Services Authority. You can find out more on: www.fca.org.uk

Lifetime Allowance

The Lifetime Allowance, or LTA, is a limit set by HMRC on the total value of all pension benefits (except the State pension) that can be taken without paying additional tax. The value of benefits is assessed at the time that the pension is taken.

The Scheme Administrator (MyCSP)

The Scheme Administrator (MyCSP) is the organisation that holds your pension records and administers your pension on your employer’s behalf, including working out and arranging pension payments.

Partial retirement

The partial retirement rules allow you to draw your nuvos pension whilst you continue to work for your Civil Service pensions employer. You will only be allowed to do this if you have reduced your earnings by at least 20%, for example by moving to part time working.

Highest scheme earnings

Your highest scheme earnings are the pensionable earnings used to work out the maximum pension you can have in nuvos (see question 21).

Partnership pension account

The partnership pension account is a defined contribution pension arrangement. Members of the partnership scheme do not have to contribute but their employer will.

Pension age

Pension age is the earliest age at which you can choose to leave and receive immediate payment of your pension without it being reduced because of early payment. Pension age is normally 65 in nuvos.

Pension Choices

This is the form attached to the introduction letter in your Starter Pack.

Pensionable earnings

Pensionable earnings include all your pay that could count towards your pension. They can also include non-cash items, for example, uniforms or accommodation.

The pensionable earnings that you have earned during a scheme year are used to work out your nuvos pension.

premium

premium is part of the Civil Service pension arrangements; it is a defined benefit occupational pension scheme based on final salary. It was closed to new entrants from July 2007.

Preserved

A preserved pension is pension benefits from an earlier period of service in the Civil Service

pension arrangements that will come into payment at a later date, usually at pension age. If you leave nuvos with more than two years’ service you can leave the pension benefits you have built up in the scheme to be payable at your pension age.

Public Sector Transfer Club or “The Club”

A group of defined benefit occupational pension schemes, mainly within the public sector. The Club assists easier movement of staff between its members by providing broadly equivalent benefits when they transfer.

Scheme Actuary

The Scheme Actuary provides actuarial advice to the scheme. For example working out what pension benefits will cost and what contributions will be needed to pay for them.

Scheme year

is 1 April to 31 March

State Pension Age

State Pension Age is the earliest age you can start receiving your State Pension.

For more information about State Pensions visit:

www.gov.uk/state-pension

State Second Pension (S2P)

This is the additional State pension (on top of the basic State pension) that used to be called State Earnings-Related Pension (SERPS). The amount you receive depends on your National Insurance contributions. Please note – this ended on 5 April 2016.

Transfer value

A transfer value is the amount paid as a transfer payment when a member takes their benefits from one pension scheme to another.

Trivial commutation

Subject to HMRC limits, a small pension may be commuted (exchanged) for a lump sum payment; this is known as trivial commutation.