Question 1

What are the main civil service pension schemes?

Accepted Answer

The Civil Service Pension Scheme has evolved through several sections. The most common are: classic (1972-2002, final salary at 1/80 with automatic 3/80 lump sum, NPA 60), premium (2002-2007, final salary at 1/60, NPA 60), and alpha (2015 onwards, career average at 2.32% per year with CPI + 1.5% revaluation, NPA equal to state pension age). There are also classic plus (a transitional hybrid), nuvos (2007-2015, an earlier CARE scheme at 2.3%), and partnership (a defined contribution alternative). Most current civil servants are in alpha.

Question 2

How is the alpha pension scheme calculated?

Accepted Answer

Alpha is a Career Average Revalued Earnings (CARE) scheme. Each year you accrue 2.32% of your pensionable earnings as annual pension — the most generous CARE accrual rate of any UK public sector scheme (compared to 1/54 = 1.85% for NHS, 1/57 = 1.75% for TPS, and 1/49 = 2.04% for LGPS). Each year's accrual is then revalued annually by CPI + 1.5% while you remain an active member. Your final pension is the sum of all your revalued accruals.

Question 3

What is the McCloud remedy and how does it affect civil servants?

Accepted Answer

The McCloud judgement (2018) ruled that the 2015 public service pension reforms unlawfully discriminated against younger members. Civil servants who were active members on both 31 March 2012 and 1 April 2015 have a one-time choice at retirement about whether their service between 1 April 2015 and 31 March 2022 should be in alpha or their legacy scheme (classic or premium). The choice is highly individual and depends on your full service history.

Question 4

Should I transfer my civil service pension out to a SIPP?

Accepted Answer

Almost certainly not. The Civil Service Pension Scheme is one of the most generous defined benefit schemes in the UK, particularly the alpha scheme with its 2.32% accrual rate. Transferring out means giving up a guaranteed inflation-linked income for life in exchange for a pot of money you have to manage yourself. UK regulators presume that DB-to-DC transfers are not in members' best interests. Transfers above £30,000 legally require advice from a regulated pension transfer specialist.

Question 5

What is the difference between classic, classic plus, premium, nuvos, and alpha?

Accepted Answer

Classic (1972-2002) is a final salary scheme at 1/80 accrual with an automatic 3/80 lump sum. Classic plus (2002-2007) is a transitional hybrid. Premium (2002-2007) is a final salary scheme at 1/60 accrual with no automatic lump sum. Nuvos (2007-2015) was an earlier CARE scheme at 2.3% accrual revalued at CPI. Alpha (2015 onwards) is the current CARE scheme at 2.32% accrual revalued at CPI + 1.5%. This calculator covers classic, premium, and alpha — the three most common sections.

How much will your civil service pension be worth?