This guidance is addressed to Cabinet Office as scheme manager of the Civil Servants and Others Pension Scheme ('CSOPS' or alpha scheme).
The purpose is to provide Cabinet Office with guidance on how enhanced effective pension age (EEPA) and effective pension age (EPA) costs are calculated within the alpha scheme. This also covers guidance for assessing the value of the EPA and EEPA options against the overall limit of extra pension (the 'headroom test').
This guidance is applicable to benefits accruing in the alpha scheme only.
We do not envisage any special cases not covered by this guidance. However, if any do occur they should be referred to GAD.
The following changes have been made when reviewing this guidance:
- Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
- Calculation methodology: In EPA contribution rates, the approach for factors has been updated where relevant to be based on Normal Pension Age in years and complete months, ignoring part months (rather than rounding up to next nearest month). No other changes have been made to the calculation methodology.
- Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
- Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
- Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
- Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.
