Advice and support
Pensions
A pension means security in retirement. That is why the FDA is dedicated to protecting and improving yours.
Ongoing issues with Capita and administration of Civil Service Pensions Scheme
This week saw Paymaster General Nick Thomas-Symonds announce that £9.9 million had been witheld from Capita due to their failures, in addition to other action. FDA Assistant General Secretary Adrian Prandle told Civil Service World that, “it is right that the terms of contract are being used to address failings.”
Whilst Prandle praised ministers for a “serious response and decisive action,” he warned that, “it is vital that none of this detracts from securing action for pensioners facing financial hardship and all other scheme members. Those who have served the public throughout their working lives deserve nothing less”.
opinion
Never again
Following the unacceptable issues arising from the civil service pension scheme transfer to Capita, Adrian Prandle outlines the FDA’s ongoing work to ensure members get the support they need as quickly as possible.
The FDA is committed to ensuring each and every one of its members receives a fair pension when they retire.
Whether you are a member of the current civil service Partnership or Alpha schemes, the former Classic, Classic Plus, Premium and Nuvos legacy schemes, or a completely different pension scheme, the FDA has the expert knowledge and bargaining power to help ensure your future economic security.
We help secure better pensions for FDA members by:
- Negotiating for better pensions across government, including reforms to the Civil Service Pension Scheme.
- Working with departments and other civil service employers to protect members’ pension benefits and holding the Cabinet Office and Capita to account to ensure service levels improve following the transfer of administration of the Civil Service Pension Scheme.
- Solving individual members’ issues and ensuring our members receive the benefits they are entitled to and correct advice when planning for the future. We help members with their pension problems, from those caused by administrative error to those arising from early or ill health retirement. We also offer guidance on a range of pension subjects, including annual and lifetime allowances and pension tax relief.
- Providing members with a free consultation with an independent financial advisor, where they can discuss their pensions, via FDA Portfolio – our members discounts programme.
- Taking an active role in the governance of civil service pensions, with FDA representatives having seats on the Civil Service Pensions Board, the Civil Service Pension Scheme Advisory Board and the Joint Superannuation Committee with the Cabinet Office.
- Working with the TUC and public service unions to protect and improve the provision of public service pensions.
Please do not ask your FDA reps for personal financial advice. They can provide you with information about your pension and your options but they are not financial advisers. Your reps are not accredited to provide income tax or financial advice, and they are not authorised by the Financial Conduct Authority to give advice.
McCloud judgment and remedy
The FDA will continue to keep members updated on the government’s plans for addressing the age discrimination as found in the McCloud judgment. In the meantime, members can access our FAQs on the McCloud and Sargeant judgments, and on the Treasury’s consultation on public sector pensions.
Gender Pension Gap Day
‘Gender Pension Gap Day‘ represents the point of the year that an average retired woman would run out of pension income if she was receiving it at the same rate as an average retired man. This year it took place on 21 August. It is based on research showing the gender pension gap in the UK is 36.5% – more than double the country’s gender pay gap. And it’s even worse for civil servants: the latest actuarial valuation of this scheme showed a gender gap of 45%. The FDA has raised this directly with the civil service scheme and is supporting a union initiative to close the gender pension gap for civil servants.
Some progress is being made. The local government pension scheme consulted on proposals that would close its gender gap significantly. We need the Cabinet Office to adopt these for the civil service scheme.
The FDA will continue to press for progress on behalf of members, and we are encouraging members to sign this petition in support of these efforts.
Pensions Guidance
Need some advice?
FDA members are entitled to a free consultation with a financial advisor via FDA Portfolio.
Find out how the tax regime impacts FDA members’ pension savings.
Important information regarding transfer of scheme administrator.
HELP
FAQs
The majority of new starters in the civil service are auto-enrolled into the Alpha scheme, part of the Civil Service Pension Scheme.
Alpha is a defined benefit scheme, specifically it is a career average scheme. You may also hear the terms ‘CARE’ (Career Average Revalued Earnings).
This means your retirement income is based on your salary and length of service, rather than investment performance. In practice, this means you build up a guaranteed income for life, calculated using a set formula rather than the value of a pension pot that rises and falls with the stock market. In the case of the civil service schemes that formula is: Pension = Membership x Accrual Rate x Pensionable Pay. This makes it more stable and predictable than many private sector defined contribution pensions.
FDA reps can provide information about your pension scheme and your options, but they are not authorised financial advisers and cannot give personal financial or tax advice. However, FDA members are entitled to a free consultation with an independent financial adviser through FDA Portfolio, our member discounts programme. Find out more here.