The Options Exercise factsheet 01 April 2015.

The Options
Exercise factsheet
A new pension scheme, alpha, is being introduced on
01 April 2015.
You may have a decision to make about when you join alpha.
If you were a member of a public service pension scheme (including classic, classic plus, premium and
nuvos) on 31 March 2012, then you will be affected differently depending on how close you were to your
Normal Pension Age (NPA).
• If you were less than 10 years from your NPA on 01 April 2012, you are unlikely to move into alpha.
You will remain in your current scheme and won’t take part in the Options Exercise.
• If you were more than 13.5 years from your NPA on 01 April 2012, you are likely to move into alpha on
01 April 2015 and won’t take part in the Options Exercise.
• If you were more than 10 but less than 13.5 years from your NPA on 01 April 2012, you are likely to take part in the Options Exercise.
If you are eligible for the Options Exercise you will receive an Options Pack and will need to make a
decision about when you move into the scheme. The Options Exercise will start in October 2014 and run
through to December 2014.
This factsheet will help you to start thinking about what the choices will mean for you.
If you receive an Options Pack you will have two options:
• Option 1 - move into alpha on the alpha enrolment date shown on the statement in your Options Pack (this will be linked to the length of time you had until your NPA on 01 April 2012).
• Option 2 - move into alpha on 01 April 2015 - the day alpha is introduced.
Options Exercise timeline
31 Mar
2012
01 Apr
2012
15 Aug 30 Sep
2014
Were you a member of a public service pension scheme on 31 March 2012?
We will check what your pension arrangements were on this date to see if you are able
to take part in the Options Exercise.
Were you more than 10 but less than 13.5 years
away from your Normal Pension Age (NPA) on
01 April 2012?
This is another check to establish if you should be included in
the Options Exercise.
If the answer
to all of these
questions is yes,
then you should
take part in the
Options Exercise.
Were you active during the Options Exercise period?
The final check is whether you were active between these two dates. You are an active
member if you are currently working for an employer covered by the Civil Service
pension arrangements and in a pension scheme.
You should take part in the Options Exercise if you were a member of a public service pension scheme, at
any point from April 2007, before joining classic, classic plus, premium or nuvos. See the Q&A section of
the pension scheme website for more information: www.civilservicepensionscheme.org.uk
An Options Exercise video, calculator and this factsheet are released.
Oct
2014
These will help you to start thinking about what the options may mean for you.
You can find information about alpha and how the scheme will work here:
www.civilservicepensionscheme.org.uk/members/the-new-pension-scheme-alpha
Eligible members will receive their Options Packs.
Oct
2014
You will get a ‘Your Choice’ booklet and a statement showing your alpha enrolment date
and some information about how your choice could affect your pension. Use the pack
and information on the scheme website to make an informed choice about when you
move to alpha.
If you have checked and think you should have received an Options Pack, but haven’t, contact the
dedicated Options Exercise helpline. Details of this can be found on the scheme website:
www.civilservicepensionscheme.org.uk
The deadline to tell us your decision.
Dec
2014
Jan
2015
date you
move
into
alpha
The deadline for returning your Options Exercise decision will be shown on the
statement in your Options Pack. If you do not let us know your decision before this
date then Option 1 will apply automatically and you will move into alpha on your alpha
enrolment date shown on your statement.
You will be sent an acknowledgment.
You will get a letter confirming the choice you have made.
The date you move into alpha will depend on your decision.
It will either be your alpha enrolment date or 01 April 2015.
What are my options?
Principal Civil Service Pension
Scheme (PCSPS) includes classic,
classic plus, premium and nuvos
START HERE
Usually you
will start as a
PCSPS
member
Video and calculator
released and
Options Packs sent
STOP
You have
an important
decision to
make
Oct
2014
Deadline
Option 1
Dec
2014
Stay in your current
scheme until your
alpha enrolment
date.
By choosing Option 1
you continue to build
up benefits or service
in the PCSPS.
At your alpha enrolment
date your PCSPS service or
benefits will be banked,
and you will start to build up
pension benefits in alpha.
We can’t tell you what the right choice is
for you.
You may wish to speak to an
Independent Financial Adviser before you
make your choice. See the Financial
Conduct Authority site for tips on finding
an adviser:
www.fca.org.uk/consumers/financial-serv
ices-products/investments/financial-advi
ce/finding-an-adviser
Option 2
Move into alpha on
01 April 2015.
01 Apr
2015
By choosing
Option 2 your
PCSPS benefits
or service will be
banked, and you
will start to build
up benefits in
alpha from
01 April 2015.
alpha
enrolment
date
You will continue
in alpha until you
take your benefits.
Take your
benefits
There are some things you may want to think about before making your decision:
• The decision you make about when to join alpha will not affect the amount you pay in contributions. From April 2015 onwards the rate you pay will be the same, no matter which decision you make.
• The age you are thinking of taking your pension benefits: The calculator will help you see how your pension benefits are affected by the option you choose at different retirement ages.
• Your pension benefits in alpha will be based on what you earn in each year of active membership until you retire rather than your salary at, or close to, retirement.
• alpha has some features that will only be available to you once you join the scheme:
www.civilservicepensionscheme.org.uk/media/94721/gmp_310714_colour.pdf
• Read our FAQs for information about alpha, CSCS compensation, breaks in service and more:
www.civilservicepensionscheme.org.uk/members/the-new-pension-scheme-alpha/2015-pension-changes-faq
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