Abatement

If you retire taking your PCSPS benefits (classic, classic plus, premium, nuvos) and continue to work for (or are reemployed by) a Civil Service employer, your pension may be reduced (abated).

Abatement will only apply if your combined post-retirement salary and pension is more than you earned before retirement. This earnings figure is known as your ‘salary of reference’.

The level of pension we use, and how we define your ‘salary of reference’, depends on your scheme. The ‘frequently asked questions’ below explains this in detail.

alpha pensions are not subject to abatement.

Abatement could apply in the following circumstances.

  • you continue to work after taking partial retirement 
  • you are reemployed in the Civil Service having previously fully retired
  • you access a preserved pension for an earlier period of service, while still employed in the Civil Service
  • you have taken an annual compensation payment
  • you had a Compulsory Early Severance package that included a reserved rights top-up payment and continue to work for a Civil Service employer.

What is Abatement?

    ​​Step 1

    We take the ‘salary of reference’ that was calculated when you retired and apply cost of living increases where appropriate. 

    Your salary of reference will often be your pensionable earnings from the last 12 months before your retirement. If you earned more in a previous year, it might be based on a different period.

    ​Step 2

    We add your new salary and your pension together. Depending on your scheme, we’ll make assumptions about the about of lump sum you take when working out your abatement.We add your new salary and your pension together. Depending on your scheme, we’ll make assumptions about the about of lump sum you take when working out your abatement.

    ​​Step 3

    If the sum in Step 2 is greater than the sum in Step 1, we will reduce the pension by the difference. 

    If you’re retired and applying for a job with a Civil Service employer, you can ask for an estimate showing the potential effect of any abatement.If you’re retired and applying for a job with a Civil Service employer, you can ask for an estimate showing the potential effect of any abatement.

    Applying abatement to your pension

    We will reduce your pension from the start date of your new job or the date from when you take partial retirement. 

    The amount of abatement may change if:

    • you’re promoted temporarily or permanently
    • your conditioned hours change
    • you benefit from a retrospective pay rise that changes either:
      • the salary that was used to work out your pension before you retired or partially retired, or
      • the salary that was used in your new post when we initially worked out the abatement
    • you become entitled to a new temporary or permanent pensionable allowance
    • you are fee paid and your fees are re-negotiated (see the next section for more details).

    We do not increase the level of abatement because of normal annual pay rises, or if you work overtime.

    Read our FAQs on Abatement