Civil service pension options

I think it's a no-brainer. Go for the civil service scheme. There are not many like it around these days. There will be many people who will envy you.

Rob Graham

That's my opinion, I'm just checking to see if there are any god reasons not to go for it. As far as I can see, it costs me a lot less money, gives me much better benefits if I die in service (4 years salary), a full pension if I'm ever unable to work, and a guarenteed payout at the end. And even if I never get promoted or a payrise over inflation, the final pension would be very tasty :-)

Unquestionably the right decision, but bear in mind that the benefits will be reduced by the time you retire in 40 years time. It's an unfunded scheme, and hence increasingly unaffordable. Some dilution of benefits (e.g. the "final salary" bit...) take effect from 2013 onwards. And CS pension age will move from 60 to 65 - at least.

That said, it's miles better than anything else you'll find. Something to remember whenever you think the private sector is better paid!

I'm quite happy to work through, I'm expecting to be working until 70ish anyway :-) The thing is that the benefits would have to be reduced by a HUGE amount to make anything else look more attractive! 3.5% of pay is abslutely nothing, if I put that into a normal pension would it even be worth claiming? About 60-70 a month - would that make a worthwhile pension pat for a 28 year old?

Why do you think I wanted to get into the civil service? :-)

Bite their hand off - it probably won`t be offered to new starters for very long !

I know it won't. I'm going for it unless anyone gives me a bloody good reason not to. I can't imagine that happening either :-) LuckySimon eh!

Remember your pay is (notionally at least) being reduced to pay for the pension, probably less directly now than it was years ago. Negotiators used to settle on a pay rate then reduce it to account for what was then an entirely non-contributory scheme.

Still a good deal though. Even if it changes during your career (which it will) retrospective changes are unlikely.

The only reason I can think of for not taking it would be if you are not planning to stay around very long. Transfer values are often a disappointment.

thats basicaly what I was thinking. It's a new job, but the way it looks now I'm planning on being there long term, which makes the final salar pension the one to go for!

The civil service scheme is part of a public sector transfer club, so transfer is probably only a problem outside the public sector.

Thom