[holding answer 25 February 2009]: As at 24 February 2009 the Principal Civil Service Pension Scheme is paying 40,191 pensioners a gross pension of less than £1,000 a year and a further 60,830 pensioners are receiving a gross pension of between £1,000 and £2,000 a year. “Pensioners” includes retired officers but not those in receipt of a dependant’s pension.
The Cabinet Office, as manager of the Civil Service Additional Voluntary Contribution Scheme (CSAVCS), has commissioned Hewitt Associates Financial Services Limited to advise it on the suitability of the CSAVCS providers and the funds they offer. An Annual Review, which covers all aspects of the scheme, including fund performance, forms part of this advice.
In its 2006-07 review report, Hewitt confirmed that Standard Life and Scottish Widows remained suitable AVC providers but raised concerns about the suitability of the With-Profits funds for CSAVCS investors. In line with Hewitt’s advice Cabinet Office closed all With Profits funds to new investors from November 2007. Cabinet Office also wrote to existing investors in With Profits, giving these members the choice of transferring to another fund or leaving their accumulated fund in With-Profits and continuing to make contributions.