Redundancy

If you work part time, your service will be based on the actual hours you work and your full-time equivalent pay. There are limits to the maximum compensation that part-time workers can receive so that they do not receive disproportionately more than full-time workers.

Yes, you will need to select the option stating that you do not wish to accept the compensation offer and return this to your employer so that they are aware you do not wish to proceed with the exit. If your exit is compulsory, you will not have this option on your declaration form.

Under current tax law, the first £30,000 of a compensation payment will be tax-free. Normal tax rules will apply to payments in excess of this.

You have the choice of taking a refund of your contributions, less tax, or transferring your pension to another eligible pension scheme. If you have less than three months’ service, your employer automatically refunds your contributions because you cannot transfer your pension.

If you are re-employed in an organisation covered by the Civil Service pension and compensation arrangements within 28 days of leaving your current employer, your compensation will be cancelled and your service will be treated as continuous.

You will have to repay the full compensation amount. This will also apply if your compensation was used to buy out a reduction in your pension.

If you are re-employed in an organisation covered by the Civil Service pensions and compensation arrangements outside the 28 day period, but within the lesser of:

a) six months, and

b) the notional period of the compensation payment.

You will have to pay back the compensation payment pro-rata. The repayment would be reduced if your new employment is at a lower salary level than before. In all cases, if you have taken your pension on leaving, it may be subject to abatement on re-employment.

Re-payment is not required if re-employment is for less than 15 days in any 91 day period, or for multiple periods totalling less than 15 days in any 91 day period.

Your employer will have access to a calculator that you can use to estimate how much compensation you might be eligible to receive. The calculator cannot take into account all the possible variables but will give you an estimate.

No. If you have dual employment you are unable to apply to receive a compensation payment unless you are leaving all employers covered by the Civil Service pensions and compensation arrangements.

The scheme administrator (MyCSP) can help you understand the options available to you regarding your pension, but cannot offer advice. If you need financial advice, you may wish to speak to an independent financial adviser before you make your choice.

You can find a local advisor on the Financial Conduct Authority website: www.fca.org.uk.

If you are entitled to a Widow(er)’s Pension Scheme refund, this will show on your pension statement. You may have noticed a line indicating a deduction for a premium payment being applied to the refund. The premium deduction is for the provision to provide a Post Retirement Widow(er)’s Pension in the event that you either marry or remarry during your retirement.

The pension values shown on your Civil Service Compensation Scheme (CSCS) quotation do not include any Pensions Increase to be applied if you are currently under Normal Pension Age. Any Annual Benefit Statement you have received will have included Pensions Increase where applicable so the values will differ from your CSCS quotation.