Crucial decision imminent on Alpha pension switch

PCS members in the civil service in the 'Options' pensions group are being asked to make a choice about when to move to the new Alpha scheme in 2015.

These members have been receiving letters relating to the pensions scheme over the past few weeks over whether to move by April or on a later date, depending on which scheme they are in and their date of birth.  

PCS cannot give financial advice, but members should read all the material sent to them and use the online resources as the deadline for a decision is fast approaching.

The employer’s calculator will help you make a decision but in the 'Assumptions used,' salary is expected to grow by 4.75% every year. Many civil servants do not expect such increases in salary so members should check the box indicated to change that figure to something more realistic.

It is noticeable how projected pension changes significantly when pay assumptions are revised. After putting in your details you will see there is a box that says ‘Assumptions used,’ after clicking on that, there is another box to click to change the assumptions.

Changing pensions age

Another issue you will want to consider is the implications of changing pension age in any future early retirement/early exits schemes. If you're a member of the Classic or Premium schemes you may be eligible for early retirement after the age of 50, once in Alpha that eligibility will be at a later age. The earliest an Alpha pension can be taken is at 55. This would also apply to partial retirement. 

You need to make your choice on your own plans and if you need financial advice PCS membership services provider is Lighthouse Financial Advice. 

For an initial consultation you can contact them on 08000 858 590 and quote your PCS membership number.

Read our Alpha pensions leaflet.