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.
An active member is a nuvos scheme member who is in employment with a Civil Service employer.
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 is an additional amount of pension that you can buy (see questions 30-35).
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.
This is someone of the same sex as you, with whom you have registered your relationship under the Civil Partnership Act 2004.
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.
see Public Sector Transfer Club.
Commutation, commute, commuting
This means the exchange of pension for a lump sum.
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.
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.
A dependant is a member of your family or anyone else who relies on you financially.
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 means your husband, wife, civil partner or partner and your dependent children.
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.
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
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.
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 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.
This is the form attached to the introduction letter in your Starter Pack.
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 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.
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.
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.
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:
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.
A transfer value is the amount paid as a transfer payment when a member takes their benefits from one pension scheme to another.
Subject to HMRC limits, a small pension may be commuted (exchanged) for a lump sum payment; this is known as trivial commutation.