1. Members of classic, classic plus, premium, nuvos or alpha can top-up their benefits by buying added pension. Added pension can be bought via a lump sum payment or monthly contributions. Members of alpha are also able to buy an EPA (by monthly contributions only). By contributing to an EPA, members of alpha are able to take part of their pension earlier than their Normal Pension Age without any early payment reduction.
2. Members can choose to buy added pension via lump sum (through payroll or by cheque) or monthly contributions (through payroll). Please note: alpha members cannot buy added pension via lump sum in their first 12 months of alpha membership. Members who wish to pay for their added pension by monthly contributions can only start from 1 April, or the date the member joins alpha, if different (see information about purchases for the 2019/20 scheme year, below).
3. If a member applies to buy added pension or EPA within three months of joining the scheme, their payment can be backdated to the date they joined.
4. Buying added pension before 1 April 2020
The table below shows the maximum amount of added pension that members are eligible to buy before 1 April 2020:
|
Membership |
Maximum amount of added pension |
|
classic |
£5,700 (plus a lump sum amount of £17,100) |
|
classic plus, premium and nuvos |
£7,000 |
|
alpha |
£7,000* |
|
* this limit may be reduced if the member is also buying EPA |
|
5. To ensure that the application can be processed, members must ensure that the Scheme Administrator receives their application and cheque (if applicable) to purchase added pension by lump sum before the deadlines shown below:
|
Buying added pension |
Deadline |
|
Lump sum through payroll |
19 February 2020 |
|
Lump sum by cheque |
21 February 2020 |
6. Purchasing added pension during 2020 /21
Members of classic, classic plus, premium, nuvos and alpha will be able to buy added pension in those schemes in 2020/21 as long as they remain a member. The maximum amount of added pension that members can buy in 2020/21 is:
|
Membership |
Maximum amount of added pension |
|
classic |
£5,800 (plus a lump sum amount of £17,400) |
|
classic plus, premium and nuvos |
£7,200 |
|
alpha |
£7,200* |
|
* this limit may be reduced if the member is also buying EPA |
|
7. If a member of classic, classic plus, premium or nuvos moves into alpha, they will only be able to buy added pension and/or EPA in alpha from the date they move into alpha (but alpha members cannot buy added pension via lump sum in their first 12 months of alpha membership). Please note: for a transition member, the scheme in which added pension is bought, is the scheme which they are an active member of when they make the option. The limit for alpha added pension and EPA is £7,000 and is separate from the limit for classic, classic plus, premium and nuvos. It will be possible for members to buy the maximum amount in alpha even if they have already bought the maximum amount in classic, classic plus, premium, or nuvos.
8. Purchasing EPA during 2020 /21
alpha members cannot buy EPA if they have bought the maximum amount of added pension. There is no limit on how much EPA a member can buy, however it counts towards the limit of added pension allowed.
9. Deadline for monthly contributions from 2020/21
Members who wish to take out a contract to buy added pension or an EPA by monthly contributions for 2020/21 must send their completed application form to the Scheme Administrator by 13 March 2020.
10. Information for members
You should signpost members to the following information about added pension and EPA on the Civil Service Pensions website:
Leaflets and booklets
The Added pension page contains information for members of classic, classic plus, premium and nuvos.
Section 02 of the alpha scheme guide ‘Taking Control of your Retirement Planning’ contains information about added pension and EPA for alpha members.
Calculators
The added pension calculators and EPA estimator enable members to see how much added pension and/or EPA can buy and how much it will cost.
Application forms
To apply for added pension or EPA, members must complete the relevant application form(s) and return it to the address provided on the form. The added pension and EPA application forms are on the forms page of the Civil Service Pensions website.
If you have a question about the distribution of EPNs or you need to receive them in a different format contact EPN@MyCSP.co.uk.
You can find electronic copies of the Employers’ Pension Guide, all current EPNs and forms on our website www.civilservicepensionscheme.org.uk under ‘Employers’.
This notice is for employers and should not be issued to scheme members.
If members have a question about their pension they can find information at: www.civilservicepensionscheme.org.uk/members