Alpha pension scheme contributions

What is a civil service pension and what are the contributions?

Here's everything you need to know about how civil service pensions work.

Civil service pensions are given to individuals who work in the public sector to help them save for the future.

But, unlike most other pension schemes today, civil service pensions operate differently and provide a different pensionable income than workplace pensions in the private sector.

Here’s everything you need to know about how civil service pensions work.

What are civil service pensions?

Civil service pensions help individuals working in public sector bodies save for the future.

However, unlike many other pension schemes, civil service schemes are defined benefit pensions, and guarantee an income to individuals based on their final salary and years of service.

Defined contribution pensions, on the other hand, are much more common in the private sector.

Over time, you and your employer will make contributions to a pension scheme. These contributions are then invested, meaning that the value of your final pension will be dependent on these contributions and the returns the pension funds have returned.

As they guarantee a minimum income, and are subsequently much rarer today, defined benefit pensions such as those in the civil service are seen as more attractive pension schemes.

Civil service pensions have undergone various reforms, with five types of civil service pension now in service, depending on when you joined the civil service.

These are called:

• Classic: Closed to new members; existing members continue under the original terms.
• Classic plus: Transitional scheme for those who were in the classic scheme but moved to classic plus under specific conditions.
• Premium: Closed to new members; existing members benefit under its terms.
• Nuvos: Closed to new members; existing members continue under its terms.
• Alpha: The current scheme for new entrants since 1 April 2015.

How do civil service pensions work?

When you join the civil service, you will automatically be enrolled into the civil service alpha pension scheme, which became the default scheme for individuals in April 2015.

Compared to the previous pension schemes, the alpha pension has a higher pensionable age — the age at which you can start to draw on these savings — and is slightly less generous than previous schemes.

As you work for the civil service, you and your employer will make contributions to your pension, with the majority to be made by your employer.

As civil service pensions are defined benefit schemes, the longer you work for the civil service, the more valuable your pension becomes.

Then, once you reach pensionable age , you will be able to draw on your civil service pension and will receive a guaranteed level of income.

What is the Civil Service Partnership scheme?

When you enrol in the civil service, you will be given the choice of joining the alpha scheme or civil service partnership.

Partnership is a defined contribution pension scheme, so you and your employer make automatic contributions to a pension scheme that is invested as part of a pension pot.

You will see your savings accumulate over time based on the returns that your savings have earned. This is an alternative to the defined benefit scheme.

What are your civil service pension contributions?

Over time, you and your employer will contribute to your civil service pension.

The member contribution thresholds from 1 April 2024 are:

• £0–£34,199: 4.6%
• £34,200–£56,000: 5.45%
• £56,001–£150,000: 7.35%
• £150,001+: 8.05%

Your employer’s contributions, from 1 April 2024, are:

• £0–£23,000: 28.97%
• £23,001–£45,500: 28.97%
• £45,501–£77,000: 28.97%
• £77,001+: 28.97%