Civil Service Pension schemes

Andr3w · 20 Sep 2011 at 18:25

....Care to tell us what the difference is

?

Nazca · 20 Sep 2011 at 18:48

Sorry

http://www.civilservice.gov.uk/Assets/NS_PCO-2011_tcm6-1868.pdf

Dolph · 20 Sep 2011 at 19:15

The main difference is that Nuvos is a defined benefit scheme, whereas the other is defined contribution. Given the choice, I'd take the defined benefit, the way things are going it is likely to be worth more.

Of course, the best approach is to seek professional, independent advice.

semi-pro waster · 20 Sep 2011 at 19:37

I would choose (and am in) Nuvos although that's got a certain amount to do with laziness, Partnership didn't seem worth the effort to go for.

Out of interest if you don't mind what graduate scheme and what department?

aayzof · 20 Sep 2011 at 19:52

I chose Nuvos a few years ago.

Vonhelmet · 20 Sep 2011 at 19:55

People are still offering defined benefit? Bloody hell, I thought they had all but disappeared, given that they are extremely difficult to operate at anything but a deficit.

My dad got out of the civil service with an absolutely crazy index linked final salary pension about 15 years ago at age 50. Last I checked it was £25k per year.

Nazca · 20 Sep 2011 at 20:44

semi-pro waster said:
I would choose (and am in) Nuvos although that's got a certain amount to do with laziness, Partnership didn't seem worth the effort to go for.

Out of interest if you don't mind what graduate scheme and what department?

DESG, CAAS.

semi-pro waster · 20 Sep 2011 at 21:38

Nazca said:
DESG, CAAS.

Cheers, not one I know anything much about but good luck for starting and I hope you enjoy it.

MrMoonX · 20 Sep 2011 at 21:52

your screwed either way with the new schemes anyway

im in premium, but now I'm part time and a student I'm going to come out of the pension scheme and stop paying in as when I qualify its more likely to be local government than civil service

DanH84 · 20 Sep 2011 at 22:45

you'll probably want nuvos if you're going to be there for a while. It's not going to be as good as a lot of people who've been there longers pensions but it's still going to be better than the majority of equivalently paid private sector jobs.

Nazca · 20 Sep 2011 at 23:01

DanH84 said:
you'll probably want nuvos if you're going to be there for a while. It's not going to be as good as a lot of people who've been there longers pensions but it's still going to be better than the majority of equivalently paid private sector jobs.

That's the thing. I have no idea how long I'll be working there. The grad scheme is 2 years. So it's very likely I'll be there for at least 2 years unless things go bad. After that, no idea. It does look that the nuvos scheme is more favourable than the partnership scheme, what with paying lower NICs and larger employer pension contributions. I may just stick with it.

semi-pro waster said:
Cheers, not one I know anything much about but good luck for starting and I hope you enjoy it.

Thanks

Nix · 21 Sep 2011 at 00:52

Defence Engineering Science Group / Communication as A Service?

Nazca · 21 Sep 2011 at 03:15

Hotwired · 21 Sep 2011 at 03:30

Vonhelmet said:
People are still offering defined benefit? Bloody hell, I thought they had all but disappeared, given that they are extremely difficult to operate at anything but a deficit.

My dad got out of the civil service with an absolutely crazy index linked final salary pension about 15 years ago at age 50. Last I checked it was £25k per year.

Ditto but last year and almost £30K/year pension after being in for over 30 years and ending on about £75K.

He knew a few stories of people who had been talked into giving up their index linked pensions for a more modern type. Who then found out they'd been totally shafted (for the good of the company).

Ofc index linked is impractical for a company to keep doing but if your pension was such a type and you let it go... :eek:

Pawnless Endgame · 21 Sep 2011 at 07:49

Vonhelmet said:
People are still offering defined benefit? Bloody hell, I thought they had all but disappeared, given that they are extremely difficult to operate at anything but a deficit.

Yeah I know! Recently joined up as a civil servant myself and I'm on the contribution-based pension like everyone else :-)

Spikey Willow · 21 Sep 2011 at 09:14

I joined in 2005, when they still offered Premium (which I'm on). Anyone know if this is better than Nuvos? I wonder if mine is RPI lined rather than CPI linked?

Edit: Just answered my own question

Please note that index linking for Civil Service pensions will be according to the Consumer Prices Index (CPI) from 1st April 2011, instead of the Retail Price Index (RPI)

Hagar · 21 Sep 2011 at 09:46

Private sector comparison, 25 years service, 6%/6% contribution, final salary scheme, £64k lump sum + £12k per annum at age 60 (next year), adjusted RPI or 2.5%.

Participant · 21 Sep 2011 at 10:21

Vonhelmet said:
they are extremely difficult to operate at anything but a deficit.

Do you mean by this that defined benefit pension funds often have less cash in the pot than the corresponding liability?

Anyway actuaries must be having a hard time of it recently, with all the elimination of defined benefit schemes.

Vonhelmet · 21 Sep 2011 at 13:26

Robbie G said:
Do you mean by this that defined benefit pension funds often have less cash in the pot than the corresponding liability?

In my experience, such as it is, they invariably have less cash than the liabilities and are making large cash injections into them to make up the shortfall.

Robbie G said:
Anyway actuaries must be having a hard time of it recently, with all the elimination of defined benefit schemes.

Nah, there's still work for them making up elaborate speculative guesses at how much the assets will be worth in 25 years to try to make the shortfall look less severe!