To All Members
Circular 50/14
Decision Imminent on alpha Pension Switch
DPF members in the civil service pension schemes and who are in the ‘Options’ group are being asked to make a choice about when to move to the new alpha scheme.
These members have been receiving letters relating to the pensions scheme over the past few weeks, giving them the option whether to move to the new scheme in April 2015 or on a later date, depending on which scheme they are in and their date of birth.
DPF cannot give financial advice, but members should read all the material sent to them and use the online resources as the deadline for a decision is fast approaching.
The employer’s calculator will help you make a decision but in the ‘assumptions used,’ salary is expected to grow by 4.75% every year. Many civil servants do not expect such increases in salary so members should check the box indicated to change that figure to something more realistic.
It is noticeable how projected pension changes significantly when pay assumptions are revised. After putting in your details you will see there is a box that says ‘assumptions used,’ after clicking on that, there is another box to click to change the assumptions.
For ease of reference links to the on line resources are stated below.
http://www.civilservicepensionscheme.org.uk/media/94878/141007_oefactsheet_v4.pdf
Paul Hunter
Chairman – DPF Pensions Sub Committee
