What does Deferred Choice Underpin (DCU) mean?
When members retire, they receive a choice of which pension scheme benefits they would prefer to take for the Remedy period. This is called a ‘deferred choice’.
To address the discrimination identified by the Courts, eligible members who were moved to alpha in 2015 (or later if they had tapered protection) have been moved back into the Principal Civil Service Pension Scheme (PCSPS - classic, classic plus, premium and nuvos) for the period during which the discrimination occurred, between 1 April 2015 and 31 March 2022 (the remedy period).
The choice is between PCSPS and alpha pension scheme benefits.
By deferring the choice until shortly before retirement, it allows individuals to make their choice of which pension scheme benefits are better for them, based on facts and known circumstances as opposed to assumptions on their future career, health, retirement, and other factors.
I have received my retirement options, but I need help deciding which option to choose, what should I do?
You need to choose whichever option is best for you and your personal circumstances. We are unable to provide advice on what option is best for a member. If you need financial advice, you can contact an Independent Financial Adviser.
Will my pension benefits be paid based on the choice that I make between the Principal Civil Service Pension Scheme (PCSPS - classic, classic plus, premium and nuvos) or the reformed scheme (alpha)?
Yes, your pension benefits will be paid in accordance with your decision.
Once I have made my choice, can I change my mind?
No, you need to consider the option carefully before making your decision. The decision cannot be changed and will be paid in accordance with your decision. If you need financial advice, you can contact an Independent Financial Adviser. We are unable to provide any advice.
I have been given the choice between Principal Civil Service Pension Scheme benefits (PCSPS - classic, classic plus, premium and nuvos) and an actuarially reduced alpha pension under both options, can I defer claiming my alpha pension and only claim my PCSPS pension?
Yes, you can defer claiming your alpha pension to a later date. Please advise us in writing if you wish to do this when you return your claim form.
Why is my pensionable pay the same on both quotes when the period for the Principal Civil Service Pension Scheme membership (PCSPS - classic, classic plus, premium and nuvos) is different under both quotes?
Classic pension is a final salary scheme which means that although you are not accruing pension the final value is still based on current pensionable earnings. Pensionable pay is taken from the date that you retire, looking backwards. If you were in classic, classic plus or premium benefits are being calculated on the most up to date pay figures.
If the annual pension amount is higher in one of the options, do I need to consider any other information before making my choice?
There are a number of different elements to take into account, including annual pension, lump sum and death benefits. In reference to lump sum we will have provided you with the maximum and minimum position to help you make a decision. If you feel unable to make a decision, you can seek advice from an Independent Financial Adviser. We are unable to provide any advice.
I have previously transferred benefits into CSPS under Club arrangements. What does this mean for me?
Because you have transferred benefits from another Public Service Pension Scheme into your Civil Service Pension, your benefits were transferred-in under 'Club’ arrangements. The transfer Club is for members who move between ‘Club’ schemes allowing them to transfer pension benefits on special terms. Generally, benefits transferred between Club schemes retain similar value in the new scheme. Because your transfer-in was made during the Remedy period, your previous scheme will need to send us revised calculations so we can offer you the correct 2015 Remedy (McCloud) choices. We may not yet have received the revised/alternative transferred-in calculation from your previous scheme.
We understand that you will want to see your benefits put into payment quickly and efficiently, so we will calculate your retirement quote, using your Legacy scheme (classic, classic plus, premium or nuvos) benefits but excluding the transferred-in part. The benefits resulting from the Club transfer-in will be calculated under the terms of the scheme they were transferred into, potentially alpha and not Legacy.
Once we have the revised calculations from your previous scheme you will receive an Immediate Choice Remediable Service Statement (RSS) and supporting information. This will enable you to make your Remedy choice.
The choice which you eventually make, will be made retrospectively so it will be backdated to the date your pension came into payment, and we will pay any arrears due to you.
Can I partially retire if I'm affected by the 2015 Remedy?
Yes you can. Partial retirement enables you to reduce your hours or salary and take some or all of your pension and continue working at the same time. You can also decide how much pension and tax-free lump sum you want to take.
If you're affected by the 2015 Remedy and this is the first time you are taking partial retirement, you can use the Partial Retirement Illustrator tool to give you an idea of the effect partial retirement might have on your benefits. You can use this tool if at least some of the benefits you have built up are affected by the 2015 Remedy.
The Illustrator provides a basic illustration of your projected benefits at partial and full retirement from both your PCSPS (the legacy scheme) and alpha. The Illustrator will also provide a comparison between the Deferred Choice benefits at partial and full retirement. You can find out more about partial retirement if you are affected by the 2015 Remedy.
You can also read more about partial retirement from the Civil Service in our guide.
