A guide to your Annual Benefit Statement 2017 alpha members
Contents About this guide What is your Annual Benefit Statement? Updating your details Your benefits at a glance Your personal details Your death benefit nominees Your scheme membership Your pension and tax Your alpha benefits How your alpha benefits have changed Glossary Further information 3 4 5 6 8 9 10 11 12 14 16 18 Page 2
About this guide This guide is for members of alpha. Your Annual Benefit Statement is an important document. It is a summary of your Civil Service pension benefits up to the 31 March. It includes your current death benefit nominee(s) and how much death benefit they could receive in the event of your death in service. You should ensure that your employer holds up-to-date personal details for you, for example, your current salary or home address. If you think you need to update your personal information, you should contact your employer. This guide accompanies your Annual Benefit Statement and we hope it helps you to get the most out of it. If you have any further queries that are not covered in this guide, further resources are available on the dedicated Annual Benefit Statement pages on our website: www.civilservicepensionscheme.org.uk/annual-benefit-statement Page 3
What is your Annual Benefit Statement? What is an Annual Benefit Statement? Your Annual Benefit Statement is a summary of your Civil Service pension benefits up to 31 March 2017. We produce your Annual Benefit Statement using information provided by your employer. Your statement includes your current death benefit nominee(s) and how much death benefit they could receive in the event of your death in service. It contains your personal details and important information about tax rules that could affect your benefits. You should ensure that your employer holds up-to-date personal details for you, for example, your current home address. Who receives an Annual Benefit Statement? To receive an Annual Benefit Statement, you must meet the following eligibility criteria: 1. You are an active member or an active pensioner member; or 2. You were an active member or active pensioner member of either the Principal Civil Service Pension Scheme or alpha on 31 March 2017. Your employer must also have provided a record of pension contributions (or pensionable earnings for members of alpha or nuvos) for the 2016/17 scheme year. We will issue all statements (excluding those for secure members) directly to members home addresses. This complies with the Disclosure of Information Regulations for Occupational and Personal Pension Schemes, which requires that information is sent to your last known postal address. PERSONAL From: MyCSP Civil Service Ltd Pensions PO Box 2017 Liverpool L69 2BU UK Tel: XXXX 0300 123 XXX 6666 XXXX Tel (Intl): XXXX +441903 XXX 835902 XXXX Opening hours: XXXX Mon-Fri XXX XXXX 08.30-18.00 Date: 13 June 2017 Our Ref: XXXX 33271194 XXX XXXX Your Annual Benefit Statement Dear Every year, we ll send you a statement that shows the pension benefits you ve built up so far in the Civil Service Pension arrangements, based on the latest information supplied by your employer. Reading your statement is an important step in understanding your pension benefits and how they are calculated. It is key that you read it in conjunction with the Important notes section at the back of this statement. But please remember, this statement is an illustration and not a guaranteed statement of entitlement. More information is available online visit http://www.civilservicepensionscheme.org.uk/abs The Civil Service Pensions website is full of information to help you understand your benefits and make the most of the options available to you. There s a section dedicated to Annual Benefit Statements where you ll find the answers to frequently asked questions and a step-by-step guide that walks you through your statement. Do you have a query? Please read your statement carefully and check the information against your own records to make sure it s correct. We have produced this statement using the latest information that we hold as at 31 March 2017. If you have a query about or have recently changed your personal details (e.g. date of birth, National Insurance number, pensionable earnings, address, marital status) or if you think you re in the wrong pension scheme please contact your employer through the normal route. If something needs changing, they will update your HR records and provide details to update your pension record. If your query is about pension information such as reckonable service, date joined, transfer-in history or additional benefits you have purchased, please email your query to ABSQueries@MyCSP.co.uk or post it to the above address. Don t forget to include your name, date of birth and Our Ref from the start of this letter. Please note: If you ve sent back a query or correction on your last statement, it may not have been possible to make your changes before this statement was produced. We have to work with your employer to confirm your information and any changes that you ve asked us to make, and this can take some time. Once they have confirmed your details, we ll send you a corrected statement, or a response to your query. Yours sincerely, Debra Soper For and on behalf of Civil Service Pensions www.civilservicepensionscheme.org.uk Page 1 Important: All of the figures shown on your Annual Benefit Statement are subject to rounding. Page 4
Updating your details Your Annual Benefit Statement (ABS) gives you an opportunity to check your pension information. If you have a query about your ABS, please read the Frequently Asked Questions in the dedicated ABS section on our website. www.civilservicepensionscheme.org.uk/annual-benefit-statement If you still have a question about your ABS, you can do the following. If your query is about your personal details, (for example marital status, date of birth, National Insurance, salary or address) contact your employer, who will update your pension record If your query is about your pension scheme information (for example your employment history, reckonable service, date joined, transfer-in history, extra benefits) please let us know, by either: Emailing your query to absqueries@mycsp.co.uk @ Writing to us at: Civil Service Pensions PO Box 2017 Liverpool L69 2BU (Please include copies of any supporting documentation when contacting us.) Calling us on: 0300 123 6666 Page 5
Your benefits at a glance Pension benefits can only be paid in line with the rules of the scheme. Your statement doesn t override them. You can read the rules of the scheme on the Civil Service Pensions website: www.civilservicepensionscheme.org.uk/about-us/scheme-rules Your annual alpha pension This will include any transferred in service, any Added Pension you ve bought and any pension you have built up through an EPA. The figure will show the amount after any Pension Debits have been deducted, if applicable, where these have been implemented. Please note: If a Pension Sharing Order or Scheme Pays Debit is currently being processed, this will not be taken into account until your next statement. alpha is a Career Average Revalued Earnings (CARE) scheme. Your benefits are payable unreduced from your alpha Normal Pension Age or possibly earlier if you have made additional contributions to earn EPA benefits. How your pension is worked out alpha - in alpha you build up pension of 2.32% of your pensionable earnings each year that you are an active member. Each year the benefits you have earned are adjusted in line with the change in prices set by Treasury Orders.The alpha scheme guide (on the Civil Service Pensions website) contains information on how alpha survivor benefits are worked out. www.civilservicepensionscheme.org.uk/members/alpha-guide Your death in service lump sum This is the amount that may be payable to your nominees or personal representatives if you die in service. This is worked out as 2 x your final pay on the date of your death. Your total survivor s pension Your alpha survivor s pension can be paid to your spouse, civil partner, or partner. For more information about alpha, please read the following guide on our website: www.civilservicepensionscheme.org.uk/members/publications To find out what happens to your pension if you are getting divorced, read the following guide: www.civilservicepensionscheme.org.uk/members/what-toexpect/ if-you-are-getting-divorced Page 6
Your benefits at a glance Statement as at: 31 March 2017 The value of your benefits in this statement are worked out up to the statement date shown above. They do not include any projected pension benefits. Your annual alpha pension: XX You ll be able to claim your full alpha pension from your State Pension age, or age 65 if your State Pension age is less than 65. Your State Pension age is currently 66 Years 0 Months. These amounts include any: Transferred in service or pension. Previous periods of service you have opted to aggregate on re-joining. Added pension you ve bought. Added years you ve bought. Pension benefits you ve bought an EPA for. Pension debits that have been applied from pension sharing orders. These amounts do not include any: ( i ) Benefits from previous periods of service, unless you opted to aggregate your previous benefits on re-joining. Additional Voluntary Contributions (AVCs). Your AVC provider will send you details of these separately. Pension earmarking orders. These are applied when you take your benefits. You can see a detailed breakdown of what is included in these figures in the Your benefits section at the back of this statement. Your death in service lump sum: XX This amount has been worked out as 2.0 times 31,233 XX which is the actual pensionable earnings we held for you at the date of the statement. If you are part-time, the figure shown will be your actual rate of pensionable earnings and not your full-time equivalent. The actual lump sum amount your nominee or estate could receive will be based on your final pay on the date of your death. Your total survivor s annual pension: XX ( i ) Every effort has been made to ensure that this statement is accurate. It is based on the latest data that is held, but it is not a guarantee of your entitlement. Page 7
Your personal details This section provides a summary of your personal details. If you think anything is wrong with these details, please tell your employer in the usual way so they can amend your HR and pension record. We cannot update your personal details on your pension record as any updates must be supplied by your employer. For guidance on how to update your personal information, see the Updating your details page in this guide. Page 8
Your death benefit nominees This section of your statement shows your current nominations. If this section is blank, it means we don t hold any death benefit nominees for you. If we don t hold any nominees for you, your lump sum will be paid to your personal representative. You can nominate more than one beneficiary and choose how to divide your lump sum between them. To make a new death benefit nomination or to change your current nomination, you will need to complete a new Death Benefit Nomination form. You can find the form on the Member forms page of the Civil Service Pensions website: www.civilservicepensionscheme.org.uk/members/member-forms Please complete your form in black ink and in block letters and return it to: Civil Service Pensions PO Box 2017 Liverpool L69 2BU You can find more information about death benefits in this guide: www.civilservicepensionscheme.org.uk/members/quick-start/peace-of-mind Page 9
Your scheme membership This section shows the date you joined alpha and began building up benefits. If you think the details of your scheme membership are wrong, please contact us by either: Emailing your query to absqueries@mycsp.co.uk Writing to us at: Civil Service Pensions PO Box 2017 Liverpool L69 2BU (Please include copies of any supporting documentation when contacting us.) Calling us on: 0300 123 6666 Page 10
Your pension and tax This section shows the percentage of standard Lifetime Allowance used by your benefits. This statement only shows the percentage of the Lifetime Allowance used up by your Civil Service pension. For more information about the Lifetime Allowance, visit the HM Revenue & Customs website which contains information about the tax rules that apply to pensions in the UK. www.gov.uk/government/organisations/hm-revenue-customs For more information about your Civil Service pension and tax visit: www.civilservicepensionscheme.org.uk/members/pensions-and-tax Please note: If the Lifetime Allowance percentage shown on your statement is 100% or more, then you should contact HM Revenue & Customs for further guidance. Page 11
Your alpha benefits The date you joined alpha This shows the date you joined alpha, you should check that this matches your records. Years you have contributed to alpha This is used when calculating your survivor s pension. It represents the number of scheme years that you have contributed to alpha, irrespective of whether you were working full-time or part-time. Your pensionable earnings Not all of your pay counts towards your Civil Service pension. Pensionable earnings are usually your basic pay and some types of allowances and bonuses. To find out more about which parts of your pay are pensionable, contact your employer in the usual way. Your Normal Pension Age benefits in alpha The amount of alpha Normal Pension Age benefits shown, is made up of the pension you ve built up to the date of the statement, plus any pension you ve transferred in from another pension scheme and any Added Pension that you may have bought in alpha. This pension can be claimed in full from your Normal Pension Age. The Normal Pension Age in alpha is either your State Pension age or age 65, whichever is later. Your pension will be reduced for early payment if you claim it before your Normal Pension Age. The figure shown here does not take into account any of these reductions. Please note: If a Pension Sharing Order or Scheme Pays Debit is currently being processed, this will not be taken into account until your next statement. This does not include any pension you have built up by buying an EPA. Your EPA benefits earned to date If you have benefits showing here, you have chosen to make contributions towards EPA. Each EPA you build up can be claimed in full before your Normal Pension Age. This section also shows the date you can claim your EPA in full. There s a useful factsheet about EPA. Visit the Civil Service Pensions website if you want to find out more: www.civilservicepensionscheme.org.uk/media/95181/epafs_v2_310315.pdf Your death benefits This shows your death in service lump sum and your alpha survivor s annual pension. Your death in service lump sum can be paid to anyone. Your survivor s pension can only be paid to your spouse, civil partner or partner. There may also be a pension payable to any eligible children. Page 12
To find out more about alpha death benefits, read the relevant section in this guide or the main alpha scheme guide available to view or download from the Civil Service Pensions website. www.civilservicepensionscheme.org.uk/media/95092/alpha_schemeguides6_colour.pdf For more information about death benefits read the Quick Start guide: Peace of Mind, available on the Quick Start page of the Civil Service Pensions website: www.civilservicepensionscheme.org.uk/members/quick-start/peace-of-mind All of the figures shown on your Annual Benefit Statement are subject to rounding. Page 13
How your alpha benefits have changed This shows a breakdown of all the alpha pension benefits you ve built up to the date of your statement. Not all of the benefit types shown in the example (on the opposite page) will be shown in your statement, only those that apply to you. Benefit type Each separate benefit that makes up your full alpha pension are listed in this column. These are: Main alpha pension - the standard alpha pension, where you build up pension of 2.32% of your pensionable earnings each year that you are an active member, payable in full from Normal Pension Age. EPA - the benefits you ve built up making EPA contributions. The benefit type will show how many years earlier than Normal Pension Age you chose to be able to claim them in full. Added Pension - a separate pension you ve built up by making either additional regular monthly contributions or one-off lump sum payments. This Added Pension also provides a survivor s pension in the event of your death. Added Pension (self only) - a separate pension you ve built up by making either additional regular monthly contributions or one-off lump sum payments. This does not provide a survivor s pension in the event of your death. Transfers in - benefits you have chosen to transfer in from another pension scheme. To find out what to expect when you transfer benefits into the Civil Service Pensions arrangements, read the following guide: www.civilservicepensionscheme.org.uk/ members/what-to-expect/when-you-want-to-transfer-benefits-into-the-civil-servicepension-arrangements Opening balance This is the opening balance of each benefit type at the start of the scheme year. Added this year This shows the benefits you have added during the scheme year. Annual adjustment This shows the annual adjustment that depends on the change in prices. Closing balance This is the total closing balance as at the date of the statement and is the sum total of all elements shown. Total This shows both the total opening balance and closing balance of all your benefit types. Page 14
All of the figures shown on your Annual Benefit Statement are subject to rounding. Where any of the figures are under 1, your statement will show a 0 entry in its place. Page 15
Glossary Added Pension Added Pension is an amount of extra annual pension that you can buy; it will be paid with your pension after you retire. Additional lump sum When you take your pension benefits, within the limits set by HM Revenue & Customs, you may be able to choose to exchange some of your pension for a lump sum. Taking this will reduce your pension amount. Additional Voluntary Contributions (AVCs) You can make additional contributions to the CSAVC scheme to enhance your benefits. The CSAVC scheme is a separate scheme, provided by Scottish Widows and Standard Life. Annual Allowance The annual limit on the amount of pension savings you make in any tax year before you have to pay a tax charge. The level of allowance is set by HM Revenue & Customs. Annual adjustment An adjustment to your benefits, based on the change in prices set by HM Treasury. If you are an active member of alpha, this can decrease as well as increase your benefits. Banked service Any service built up in classic, classic plus, premium or nuvos when a member moved into alpha. Career Average Revalued Earnings (CARE) A pension that provides a guaranteed pension income based on your earnings each year with annual inflation adjustments. Death benefit nominees A person, people or an organisation that you have nominated to receive the lump sum payment when you die. Declared partner Members of classic plus, premium, nuvos or alpha can nominate a partner to receive a partner pension in the event of their death by completing a Partner declaration form. However, nomination of a partner, is not compulsory. Conditions apply to the payment of benefits. Please refer to the relevant scheme guide for more information. EPA EPA allows you to contribute more to alpha to get earlier access to part of your alpha pension. Final pay This is used to work out the lump sum payable if you die in service, if you are a member of alpha or nuvos when you die. Final pensionable earnings Your pensionable earnings are used to calculate your benefits when you retire. The calculation is different for each scheme, so please refer to the relevant scheme guide for more information. Lifetime Allowance The maximum amount of pension savings you can build up over your life without incurring an additional tax charge. Minimum pension age Minimum pension age is the earliest you can claim your benefits. The minimum pension age in alpha is currently age 55. Page 16
Normal Pension Age (NPA) The earliest age that you can take your full unreduced pension benefits. Partial retirement Partial retirement is for members who want to start accessing their pension and move gradually from work to retirement. You have to agree this with your employer and reduce your earnings by at least 20% by reducing your working hours or grade. PCSPS The Principal Civil Service Pension Scheme. This is the collective name for classic, classic plus, premium and nuvos. Pensionable earnings All the earnings that could count towards your pension which you receive during the scheme year. These are used to calculate the benefits shown on your statement for alpha. Preserved benefits If you leave the scheme with more than two years service, under Normal Pension Age and do not transfer your pension to another scheme, the pension benefits that you have built up will be held (preserved) until you claim them. Qualifying service The time you have been a member of the scheme that qualifies you for certain benefits. Transfer in The value of your pension benefits, from another pension arrangement, that you moved into the Civil Service Pensions arrangements. Page 17
Further information We value your feedback We re always looking for ways to improve the information we provide and to make sure we ve got it right, we want to hear your feedback. To help us, please take a minute to tell us what you think about this guide, by going to the following address and completing the short survey: www.smartsurvey.co.uk/s/2017absguide Further information about Annual Benefit Statements The Annual Benefit Statement page on the Civil Service Pensions website contains more information about Annual Benefit Statements including how statements are produced and issued, a set of frequently asked questions and answers and a distribution schedule. To find out more, click here: www.civilservicepensionscheme.org.uk/abs Check the web for more general pension information Remember, if you re looking for information about your Civil Service pension, you should first check the Civil Service Pensions website. We ve created scheme guides, What to expect guides, Quick Start guides and FAQs that cover key pension events and help you to better understand your pension benefits. Features We also have a brand new section of the website, called Members like me. Inspired by members we met at events all over the country, Members like me is available on the Civil Service Pensions website now to help you find the information you need, when you need it. Visit Members like me now, at: www.civilservicepensionscheme.org.uk/members/members-like-me Page 18
Scan here for more help with your Annual Benefit Statement! www.civilservicepensionscheme.org.uk/abs 2017