Increases to civil servants’ pension costs since 2010

In 2010, as part of the coalition Government's first Budget, a public sector pension levy was announced increasing the amount members contributed in order to save for their retirement. This affected all civil service pension scheme members, with the exception of those on the lowest incomes. The levy, which was set at an average increase of 3.2%, came into effect in April of 2012.

2012

Civil service pension contributions rate increases from April 2012 were as follows:

Classic

Salary range (full-time equivalent)

2011 contributions

2012 contributions

Total increase since April 2011

Under £15,000

1.5%

1.5%

0%

£15,001 - £21,000

1.5%

2.1%

0.6%

£21,001 - £30,000

1.5%

2.7%

1.2%

£30,001 - £50,000

1.5%

3.1%

1.6%

£50,001 - £60,000

1.5%

3.5%

2.0%

Over £60,000

1.5%

3.9%

2.4%

 

Premium, Classic Plus and Nuvos

Salary range (full-time equivalent)

2011 contributions

2012 contributions

Total increase since April 2011

Under £15,000

3.5%

3.5%

0%

£15,001 - £21,000

3.5%

4.1%

0.6%

£21,001 - £30,000

3.5%

4.7%

1.2%

£30,001 - £50,000

3.5%

5.1%

1.6%

£50,001 - £60,000

3.5%

5.5%

2.0%

Over £60,000

3.5%

5.9%

2.4%

 

2013

Civil service pension contributions rate increases from April 2013 were as follows:

Classic

Salary range (full-time equivalent)

2012 contributions

2013 contributions

Total increase since April 2011

Under £15,000

1.5%

1.5%

0%

£15,001 - £21,000

2.1%

2.7%

1.2%

£21,001 - £30,000

2.7%

3.88%

2.38%

£30,001 - £50,000

3.1%

4.67%

3.17%

£50,001 - £60,000

3.5%

5.46%

3.96%

Over £60,000

3.9%

6.25%

4.75%

 

Premium, Classic Plus and Nuvos

Salary range (full-time equivalent)

2012 contributions

2013 contributions

Total increase since April 2011

Under £15,000

3.5%

3.5%

0%

£15,001 - £21,000

4.1%

4.7%

1.2%

£21,001 - £30,000

4.7%

5.88%

2.38%

£30,001 - £50,000

5.1%

6.67%

3.17%

£50,001 - £60,000

5.5%

7.46%

3.96%

Over £60,000

5.9%

8.25%

4.75%

 

2014

Civil service pension contributions rate increases from April 2014 were as follows:

Classic

Salary range (full-time equivalent)

2013 contributions

2014 contributions

Total increase since April 2011

Under £15,000

1.5%

1.5%

0%

£15,001 - £21,000

2.7%

3.0%

1.5%

£21,001 - £30,000

3.88%

4.48%

2.98%

£30,001 - £50,000

4.67%

5.27%

3.77%

£50,001 - £60,000

5.46%

6.06%

4.56%

Over £60,000

6.25%

6.85%

5.35%

 

Premium, Classic Plus and Nuvos

Salary range (full-time equivalent)

2013 contributions

2014 contributions

Total increase since April 2011

Under £15,000

3.5%

3.5%

0%

£15,001 - £21,000

4.7%

5.0%

1.5%

£21,001 - £30,000

5.88%

6.48%

2.98%

£30,001 - £50,000

6.67%

7.27%

3.77%

£50,001 - £60,000

7.46%

8.06%

4.56%

Over £60,000

8.25%

8.85%

5.35%

 

2015

In 2012 FDA members, and those from the majority of civil service unions, voted to accept a package of reforms to the civil service pension arrangements. This followed more than 12 months of intensive negotiation and industrial action by FDA members and across the public sector. A new pension scheme - Alpha - was introduced from 1 April 2015.

As part of these reforms, all civil service pension schemes saw changes to contribution rates, which are now determined by actual pensionable salary, regardless of scheme or work pattern.

Under the new framework, each year the bands (not the contribution rate) below the 'Over £150,000' band are increased. For more detailed information, click here to read the FDA's Guide to Civil Service Pensions 2015.

Civil service pension contributions rates between April 2015 and 2016 were as follows:

Actual pensionable salary

Contributions

Up to £21,000

4.6%

£21,001 - £47,000

5.45%

£47,001 - 150,000

7.35%

Over £150,000

8.05%

 

2016

Civil service pension contributions rates from April 2016 to 2017 were as follows:

Actual pensionable salary

Contributions

Up to £21,210

4.6%

£21,211 - £48,471

5.45%

£48,472 - 150,000

7.35%

Over £150,000

8.05%

 

2017

Civil service pension contributions rates from April 2017 to 2018 are as follows:

Actual pensionable salary

Contributions

Up to £21,422

4.6%

£21,423 - £51,005

5.45%

£51,006 - 150,000

7.35%

Over £150,000

8.05%

 

2018

Civil service pension contributions from 2018 are proposed to be as follows:

Actual pensionable salary

Contributions

Up to £21,636

4.6%

£21,637 - £51,515

5.45%

£51,516 - £150,000

7.35%

Over £150,000

8.05%

 

Summary

This means that some members are paying up to 6.55% more in pension contributions for no additional pension benefit. In addition, in 2016 the government removed the national insurance rebate for members of defined benefit pension schemes meaning civil servants also paid an extra 1.4% in national insurance from April that year.