The Civil Service

The civil service operates a defined benefit scheme (see Occupational defined benefit schemes) for its employees, with an annual pension based on the value of your final or average salary and a tax-free lump sum on retirement. There are different rules to calculate the benefits to which you are entitled if you retire early on the grounds of ill health, and if you die, your surviving partner or family will also be entitled to benefits. Specialised pension schemes are generally more generous than other occupational pension schemes (see Occupational Pensions) when it comes to providing for their members and their members' families if they are in difficult circumstances.

The basic civil service pension calculates a member's pension as:


annual pension =   number of years   x   accrual rate   x   salary
from scheme         in scheme 1/60
                          (to maximum of 45)


The value of your salary used to calculate your final pension will depend on when you joined the pension scheme. Members who joined prior to the 1st July 2007 will be entitled to use their final year's salary when calculating their pension. Members who joined the scheme on or after the 1st July 2007 will have their pension calculated using their average salary throughout the period of their membership. Essentially on the 1st July 2007 the civil service pension scheme changed from a final salary scheme (see Final Salary Schemes) to a career average scheme (see Career Average Schemes). Your salaries throughout your career will however be revalued to allow for inflation, so you should receive a greater annual pension than the literal average of your salaries would afford. Your annual pension will be increased in line with inflation to ensure that your retirement income retains its value. The Civil Service operates a helpline through their pension administrator on 08701 699 700 if you have any enquiries.