EPN 643 – Reminder: buying Added Pension before 1 April 2022 & the deadline for purchasing added pension and EPA during 2022/23
Originally posted: 14/01/2022
Audience
HR managers
Pension leads
All staff responsible for dealing with added pension and EPA contracts and enquiries from members
Summary
This notice provides information about the approaching deadline for purchasing added pension and EPA before 1 April 2022.
The deadline for purchasing added pension and EPA during 2022/23.
Guidance on how to apply for added pension and EPA
Actions
Issue the attached notice “Information for Civil Service Pension Scheme members” to all staff as soon as possible
To notify your payroll provider of a possible increase in added pension and EPA instructions from the scheme administrator (MyCSP)
Timing
Immediate
Detail
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 (NPA) without any early payment reduction.
2. Members can choose to buy added pension via lump sum (through payroll, BACs 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 2021/22 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 2022
The table below shows the maximum amount of added pension that members are eligible to buy before 1 April 2022.
Membership
Maximum amount of added pension
classic
£5,900 (plus a lump sum amount of £17,700)
premium, classic plus or nuvos
£7,300
alpha
£7,300 (this limit may be reduced if the member is also buying EPA)
*Please note that, in light of restricted access to offices, this year we are encouraging members to not pay by cheque. With this in mind, please note that members can pay via payroll or BACS, and only if these options are not available to them then they should pay by cheque. Cheques should be made payable to ‘CO Civil Superannuation’ and application forms must be with the Scheme Administrator by 14 January 2022.
5. Added Pension purchase by Lump Sum for before 1 April 2022 deadline
To ensure that the application can be processed, members must ensure that the scheme administrator (MyCSP) 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 & BACs
11 February 2022
Lump sum by cheque
14 January 2022
6. Purchasing added pension during 2022/23
Depending on the scheme the member is in when they apply for Added Pension will determine what scheme the Added Pension amount is credited to. Please see specifics below:
For members in classic, classic plus, premium or nuvos who have an existing added pension or added years contract, these will continue when you move into alpha. If you would like your Added Pension contract to become an alpha one, you will need to cancel and reapply in April 2022. Please note you can purchase alpha Added Pension by lump sum during 2022/23.
If a member is in classic, classic plus, premium or nuvos, and they apply for added pension between now and the March deadline (see below), they will be purchasing classic, classic plus, premium or nuvos added pension from 1 April 2022.
If a member is due to transition into alpha on 1 April 2022, and they want to buy added pension in alpha, they will need to apply to buy it in April 2022 and their application will be backdated to 1 April 2022. These members can purchase alpha Added Pension by lump sum during 2022/23.
Existing alpha members will need to apply for added pension between now and the March deadline (see below).
Existing alpha members who hold added pension or EPA contracts will continue as normal.
The maximum amount of added pension that members can buy in 2022/23 is:
Membership
Maximum amount of added pension
classic
£6,100 (plus a lump sum amount of £18,300)
premium, classic plus or nuvos
£7,600
alpha
£7,600 (this limit may be reduced if the member is also buying EPA)
The 12-month restriction on making lump sum purchases for members who had full or tapered protection has been removed. This will allow this group of members to purchase Added Pension by lump sum under alpha immediately.
The limit for alpha added pension and EPA is £7,600 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.
7. Purchasing EPA during 2022/23
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.
8. Added Pension and EPA monthly contribution deadline
Members who wish to take out a contract to buy added pension or an EPA by monthly contributions for 2022/23 must send their completed application form to the Scheme Administrator (MyCSP) by 11 March 2022.
Members due to transition into alpha on 1 April 2022 who want to buy added pension in alpha will need to apply in April 2022 and their application will be backdated to 1 April 2022.
9. Information for members
You should signpost members to the following Information about added pension and EPA on the Civil Service Pensions website.
Webpage, Leaflets, and booklets
There is a dedicated webpage on Added Pension which provides information on all scheme and links through the support materials mentioned below.
The Added Pension leaflet contains information for members of classic, classic plus, premium and nuvos.
