The Principal Civil Service Pension Scheme
The Principal Civil Service Pension Scheme is a statutory (scheme rules are enshrined in law, as opposed to a trust deed), occupational (connected to employment in the Civil Service) scheme.The principal Civil Service Pension Scheme is a voluntary scheme in which members can join at any time during their employment within the Civil Service.
The PCSPS is divided into sections.
Classic Section
A final salary scheme ( final pensionable pay is based on earnings near to retirement). Members contribute 1.5% of pensionable pay. Main benefits are a pension that builds up by 1/80th of final pensionable pay for each year of membership and an additional one off cash sum equal to three times the pension. The Normal Retirement Age is 60. New staff have not been able to join it since 1 October 2002.
Premium Section
A final salary scheme. Members contribute 3.5% of pensionable pay. Main benefits are a pension that builds up by 1/60th of final pensionable pay for each year of membership. There is no additional cash sum but members can exchange part of their pension for a cash sum when they retire. The Normal Retirement Age is 60. New staff have not been able to join it since 30 October 2007.
Nuvos
A scheme that calculates your final pensionable pay on all the pensionable pay you received during your membership revalued in line with prices increases. Members pay 3.5% of pensionable pay. Main benefit is a pension that builds up by 2.3% of final pensionable pay (equivalent to a 1/43rd )for each year of membership. There is no additional cash sum but members can exchange part of their pension for a cash sum when they retire. The normal retirement age is 65. New staff can join the scheme.
Partnership
This is a stakeholder pension arrangement that means no benefits are guaranteed and dependent on how much is paid in to your pension pot and on the investment returns on the money paid in. Crucially it also depends on how expensive it is to buy pension when you reach retirement age. The member can decide the level of contributions they pay and the employer contribution will depend on how much the member decides to pay and the age of the member. New staff can join this arrangement as an alternative to Nuvos.
The above are just brief descriptions of the main pension options for members for more information members can consult the Civil Service pensions website:
http://www.civilservice.gov.uk/my-civil-service/pensions/index.aspx
Latest updates
Department of Health final proposals [pdf file])
