Your contribution rate
There is now a single set of contribution rates across Civil Service Pensions, regardless of whether members are in classic, classic plus, premium, nuvos or alpha.
The rates are set out in the tables below.
Civil Service Pensions employee contribution rates
Scheme Year 1 April 2016 to 31 March 2017
|Annualised rate of pensionable earnings||Member contributions rate|
|Members who are in classic or who moved into alpha from classic||All other members|
|£0.00 to £15,000||3.80%||4.60%|
|£15,001 to £21,210||4.60%||4.60%|
|£21,211 to £48,471||5.45%||5.45%|
|£48,472 to £150,000||7.35%||7.35%|
|£150,001 and above||8.05%||8.05%|
If you are paid monthly, the contribution you make each month will depend on the pensionable earnings you were paid in that month. Your contribution rate will be worked out by taking your pensionable earnings for that month, multiplying them by 12, and applying the correct rate for the pay band (set out in the tables above).
If your pensionable earnings change in any month, and your increased or decreased earnings take you into another pay band, your contribution rate will also change. Your pensionable earnings may vary from month to month because of changes such as pensionable bonuses, arrears of pay, or changes to your hours or salary.
More information about the 2015 contribution changes
Phasing of contribution changes for some members
Current members of classic in 2014/15 who earned between £47,000 and £50,000, saw an increase of 2.08% in the contributions they pay in 2015/16, compared to 2014/15.
From April 2017 this pay band will increase to start at earnings over £50,000, which will mean that members earning between £47,000 and £50,000 will fall into the lower pay band, and pay a lower level of contribution.
Members of classic, earning £15,000 or less, paid a protected rate of 1.5% until April 2015. They will now see a gradual increase in their contributions to bring them in line with other scheme members.
This increase will be brought in over three years, starting from April 2015.
- April 2015 contributions increased to 3.00%.
- April 2016 contribution increase to 3.80%.
- April 2017 contribution increase to 4.60%.
Changes to National Insurance Contributions
In April 2016, contracting-out of the State Second Pension will end. This means that your National Insurance contributions will increase, but your Civil Service Pensions contribution rate will be unaffected. You can find more information about contracting-out here.
Contributions and higher rate tax bands
The contribution rates are set broadly in line with HM Revenue & Customs income tax thresholds. Information about pensions tax can be found here.
The contribution rates have been set taking into account the scheme valuation, and including the current higher rate tax threshold. There is a margin built into the current salary bands, which are set out in the scheme rules for each year until the 2018/19 scheme year, to allow for increases in the higher rate tax threshold.
After future valuations, contributions may change. If so, they will be set taking into account changes to the higher rate tax threshold.