Cardiff University Voluntary Severance Scheme
Pensions information available via Pensions section
Pre stage 1
Questions where the Pensions section can assist:
● Am I able to draw my pension on leaving in 2013 under the Voluntary Severance scheme?
● Will my pension be reduced in value to reflect it being brought into payment before my normal retirement date? (This reduction is referred to as an actuarial reduction – see footnote* for further explanation)
● Approximately how much might my pension be?
Guidance on the finding answers to these questions can be found on the scheme specific flowcharts available here: USS CUPF LGPS NHSPS
Please note that it is not expected that a meeting with a member of the Pensions section will be necessary at this stage. USS and NHS pension estimates are available online (see flowchart above for link) but requests for approximate pension estimates for CUPF and LGPS members should be made by email to email@example.com referencing VS 2013 in the subject line. Dependent on demand, estimates will normally be issued within two weeks of request.
Pre stage 2
Once you have been notified of stage 1 approval and if you are able to draw your pension on leaving and wish to do so, the relevant HR manager will request on your behalf a detailed pension estimate from the Pensions section. If necessary a meeting with a member of the Pensions team can be arranged at this stage.
The pension estimate will show the estimated value of your pension both before and after any actuarial reduction has been applied and also the cost to be paid to make good the actuarial reduction.
Dependent on demand, estimates will normally be available within three weeks of request but may be longer depending on the pension scheme involved (e.g. NHS pension benefits quotes may take 6-8 weeks to be received)
Post stage 2
If your stage 2 application is approved then the HR manager will request a formal quotation of benefits to be obtained for you. As well as showing the standard benefits payable (annual pension plus three times pension as a cash lump sum), this quotation will also include details of other options available to you (a higher lump sum and lower annual pension and vice versa).
* Actuarial reduction
The calculation of pension payable to a member assumes that the member will pay into the scheme until they reach the scheme’s normal retirement age and that it will be paid for a significant number of years. If the member retires at a younger age than this they are likely to receive the pension over a longer period and so, as their pension pot needs to stretch further, the size of their annual pension is reduced to reflect its longer payment. As the amount of the reduction is calculated by the pension scheme actuary this reduction is known as an actuarial reduction).