Could I ask the Civil Service pension experts for their opinion and observations please?
I am retiring shortly, and have received the figures for pension and gratuity from the CS shared services HR.
There is a deduction being made from my gratuity in respect of Spouses & Children's contributions which are deemed owed. I'm disputing this but am not getting anywhere (bad time of the year to try to get anyone, I know!).
I worked from 1978 to 1986 in the public service and did not pay S&C (it didn't exist until 1981 and I opted out until I changed jobs and was opted in in 1986).
I am aware that I owe for this period in question (about 8 years).
I have paid S&C since 1986 - approx. 33 years.
I was divorced in 2003.
The CS pension guidebook states that...
"Non-periodic contributions are payable in respect of "relevant service", which means:
.....(b) for a widowed or divorced member, the period from the start of the member's reckonable service up to the date of the end of the marriage"
and..
"The non-periodic contribution rate is
(a) 1% of retiring salary for each year of relevant service, less any years in respect of which periodic contributions (or purchase contributions) were paid;..."
My understanding of the S&C scheme, and my reading of the relevant guideline handbooks indicates that I am liable for S&C from the time I started work up to the time I divorced (approx. 25 years). Shared Service HR agree with this.
My reading of the paragraph above is that the 8 years I owe should be reduced by the number of years I have paid into the scheme since my divorce. By my calculations, I should owe nothing, but shared services HR don't agree.
A few years ago, I asked shared services HR about S&C contributions owed, and they confirmed at the time that my contributions made since my divorce would offset any years owed for my early service. Now they appear to be telling me the opposite.
Am I misreading the handbook information? Were HR correct when they told me I had no liability or are they correct now?
I'd appreciate any guidance, thank you.
I am retiring shortly, and have received the figures for pension and gratuity from the CS shared services HR.
There is a deduction being made from my gratuity in respect of Spouses & Children's contributions which are deemed owed. I'm disputing this but am not getting anywhere (bad time of the year to try to get anyone, I know!).
I worked from 1978 to 1986 in the public service and did not pay S&C (it didn't exist until 1981 and I opted out until I changed jobs and was opted in in 1986).
I am aware that I owe for this period in question (about 8 years).
I have paid S&C since 1986 - approx. 33 years.
I was divorced in 2003.
The CS pension guidebook states that...
"Non-periodic contributions are payable in respect of "relevant service", which means:
.....(b) for a widowed or divorced member, the period from the start of the member's reckonable service up to the date of the end of the marriage"
and..
"The non-periodic contribution rate is
(a) 1% of retiring salary for each year of relevant service, less any years in respect of which periodic contributions (or purchase contributions) were paid;..."
My understanding of the S&C scheme, and my reading of the relevant guideline handbooks indicates that I am liable for S&C from the time I started work up to the time I divorced (approx. 25 years). Shared Service HR agree with this.
My reading of the paragraph above is that the 8 years I owe should be reduced by the number of years I have paid into the scheme since my divorce. By my calculations, I should owe nothing, but shared services HR don't agree.
A few years ago, I asked shared services HR about S&C contributions owed, and they confirmed at the time that my contributions made since my divorce would offset any years owed for my early service. Now they appear to be telling me the opposite.
Am I misreading the handbook information? Were HR correct when they told me I had no liability or are they correct now?
I'd appreciate any guidance, thank you.