The new Alpha Pension scheme was introduced on 1 April, 2015. The majority of current members of Classic, Classic plus, Premium and Nuvos will have joined the scheme. Some members will have joined on 1 April 2015.
Members in the Options group will move at a later date. The PCS pension calculator illustrates how the introduction of the new Alpha pension scheme will impact on your potential pension benefits in the future.
It provides a comparison of what you would have earned if you had remained in the section of the PCSPS (Classic, Classic Plus, Premium or Nuvos) to which you belonged before 1 April 2015 and what you will now build up as a member of the Alpha section of the scheme. The difference between the old and new figures is the reduction or, in some circumstances, the increase in your future pension that has been brought about by the change to Alpha for your future service.
Gurinder is 26 and currently a member of the Nuvos section. He works full-time and he earns £23,500 and he predicts he will want to retire at 67. His estimated future pension if he stayed in Nuvos will be £18, 245. In Alpha his future pension will be £16,207, a reduction of £2,040.
Wendy is 42 and currently a member of classic section of the pension scheme. She works 3 days a week and intends to work part-time for 10 years. She earns the full time equivalent of £28,000. She plans to retire at 65. In Alpha her estimated future pension will be £8,619 per annum compared to £6,708 in Classic, an increase of £1,910 per annum.
As can be seen in some cases this will be a reduction and in some circumstances it will be an increase in your future pension. Use the calculator (opens as an Excel spreadsheet) to see how it will affect your future pension.
The calculator does not deal with the pension you have already built up in the PCSPS prior to 1 Apri,l 2015. This can be found on your pension benefits statement and is not affected by the introduction of Alpha. It just focuses on what will happen in the future.
It is intended for illustrative purposes only and to provide a broad brush indication of the impact of the introduction of alpha on your potential pension benefits for your future membership of the PCSPS.
It should not be relied upon on its own for any decisions you might make about your future pension provision. You must consider whether you need any independent financial advice if you are considering any change in your pension arrangements.
For more information on how Alpha works please read our pension explainer.