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 OEF_v1_101014