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Civil Service Pension Scheme

PCSPS - Actuarial reduction buy out (ARBO) - all members except those retiring before age 55 whose deemed date for pension increases occurs before the date of early retirement

Premium and Nuvos

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Introduction Classic and Classic Plus members Premium and Nuvos

The ARBO cost, for a member retiring early who is a premium or nuvos member, should be calculated as:

ARBO cost = P x F_x

Where:

x is the member's age at retirement date in years and complete months

P is the unreduced pension at retirement date (including added and transfer in pension)

F_x is the relevant factor for a member aged x, taken from:

P1ARBO60 for a NPA60 premium member
P1ARBO65FS for a NPA 65 premium member (we understand that there are a small number of premium members with an NPA of 65) or linked service benefits for a nuvos member
P1ARBO65NUV for a nuvos member (excluding pension credit members)
P1ARBO60NUV for a nuvos pension credit member

The ARBO cost should be calculated before the member commutes pension for lump sum and before offsetting any divorce or scheme pays debits.

Pension credit members in premium have the option to buy out the actuarial reduction. The ARBO cost should be calculated as described above for a premium member.

Pension credit members in nuvos have the option to buy out the actuarial reduction. We understand that their pension is payable unreduced from age 60.

Different factors are required to calculate the ARBO cost for nuvos pension credit members compared to those used for normal nuvos members. The appropriate factors are described above.

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