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 taken Partial Retirement and have already made my Remedy decision (via Immediate Choice or Retirement), will this affect my Remediable Service Statement – RSS (Made up of two Annual Benefit Statements [ABS])?
Active Remedy members, who have taken Partial Retirement and already made their Remedy decision, will receive a single ABS based on the benefits accrued during Reemployment (and any remaining benefits not taken at the time) under the Remedy Option made on Partial Retirement.
For more information regarding 2015 Remedy McCloud visit 2015 Remedy (McCloud) - Civil Service Pension Scheme.
Will my Remediable Service Statement -RSS (Made up of two Annual Benefit Statements [ABS] ) be affected if I purchased Added Pension during the Remedy period (1 April 2015 – 31 March 2022)?
Legacy ABS:
Added Pension which was purchased and commenced in alpha during the Remedy Period (1 April 2015 – 31 March 2022) will be shown in this statement as alpha Added Pension. However, before claiming your benefits, this will also be converted into PCSPS Added Pension and will be shown in your statements as alpha pension.
Alternative Scheme Option ABS:
Added Pension you started to purchase in PCSPS during the Remedy Period (1 April 2015 – 31 March 2022) will be shown in this statement as PCSPS Added pension. However, before claiming your benefits, this will also be converted into alpha Added pension and will be shown in your statements as PCSPS pension.
For more information regarding 2015 Remedy McCloud visit 2015 Remedy (McCloud) - Civil Service Pension Scheme.
Why have I not received my Remediable Service Statement - RSS (two Annual Benefit Statements) by 31 August?
Some members (5% of those due to receive an RSS) will not receive their 2025 RSS (made up of two ABS; Legacy ABS and Alternative Scheme Option ABS). However, they will still receive a Legacy ABS by 30 September.
This applies to members affected by Remedy with a Deferred Choice Underpin (DCU) and who:
- Purchased EPA/EEPA during any of the Remedy period (1 April 2015 – 31 March 2022)
- Have taken Partial or Formal retirement and not claimed any benefits from the Remedy period (1 April – 31 March 2022) and are still in employment. (Note, this only affects a small proportion of this member type)
- A sub-set of members affected by data issues, which means we are unable to process an Alternative Scheme Option ABS at this time
For members impacted due to their purchase of EPA/EEPA, your Legacy ABS will only show the part of your EPA/EEPA purchased after the Remedy period. The part purchased during the Remedy period will form your alternative scheme option which will be provided at the time of retirement and will also be included in future RSS.
When a member takes their pension, they will have a choice between i) Legacy Pension, with their member EPA/EEPA contributions converted into Legacy scheme Added Pension, or alternatively a refund of their EPA/EEPA member contributions OR ii) alpha EPA/EEPA pension for the Remedy period.
A small number of members (0.4% of those eligible for an ABS) will not receive a 2025 ABS due to the issues outlined above, which cannot be resolved in time for the 2025 ABS distribution.
We have reported this to the pensions regulator and apologise for any inconvenience.
Please note; if you are planning to retire, this will not impact your retirement. You will receive your Remedy retirement quotation, and you can follow the normal retirement process.
Will my Remediable Service Statement -RSS (Made up of two Annual Benefit Statements [ABS] ) be affected if I transferred a pension into the Civil Service Pension Scheme on or after 1 April 2015?
Legacy ABS:
Transfers into alpha during the Remedy Period (1 April 2015 – 31 March 2022), or after 31 March 2022 from another Club scheme subject to Remedy, will be shown in this statement as alpha pension. However, before claiming your benefits, these transfers will also be converted into PCSPS Pension and will be shown in your statements as alpha pension.
Alternative Scheme Option ABS:
Transfers into PCSPS during the Remedy Period (1 April 2015 – 31 March 2022) or after 31 March 2022 from another Club scheme subject to Remedy, will be shown in this statement as PCSPS pension. However, before claiming your benefits, these transfers will also be converted into alpha pension and will be shown in your statements as PCSPS pension.
Will my Remediable Service Statement – RSS (Made up of two Annual Benefit Statements [ABS] ) be affected if I was subject to a pension sharing order on or after 1st April 2015?
As Divorce Debits, implemented on or after 1st April 2015, need to be assessed and potentially recalculated to reflect the effects of Remedy, we are unable to issue a Legacy ABS or RSS (made up of two ABS; Legacy ABS and Alternative Scheme Option ABS) at this time.
Please note; if you are planning to retire, this will not impact your retirement. You will receive your Remedy retirement quotation, and you can follow the normal retirement process.
Will my Remediable Service Statement – RSS (Made up of two Annual Benefit Statements [ABS] ) be affected if I was subject to a Scheme Pays debit on or after 1 April 2015?
Your scheme pays debit may need to be updated due to the Remedy changes. Whether a revision is required depends on an HMRC assessment. As a result, your RSS (made up of two ABS), will only include your Scheme Pays debits once the HMRC assessment is complete and any revision required has been calculated. If we have received confirmation from HMRC that your tax charges have changed prior to the statement being issued, this will reflect in your statement.
I've taken Partial Retirement during the Remedy period which included benefits from the Remedy period (1 April 2015 – 31 March 2022). Will this affect by Remediable Service Statement - RSS (Made up of two Annual Benefit Statements [ABS] )?
Members who took Partial Retirement during the Remedy period, including Remedy benefits, will receive an Immediate Choice Remediable Service Statement (RSS). Therefore, your ABS is based on your pre-Remedy Principal Civil Service Pension Scheme (PCSPS) and alpha benefits. After you make your immediate choice, any benefits paid at final retirement will match your selected option.
I've been advised I won't be getting an ABS in 2025 and may be entitled to take voluntary exit/voluntary redundancy. I need to use the voluntary exits calculator. What should I do?
If you don't know your length of service, you can find this from the payroll system or a previous ABS. If you're still unable to obtain your length of service then you should use your best estimate.
