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LIVE Civil Service Pension Scheme Task Force Update We are experiencing intermittent issues with One Time Passwords (OTPs) being received to mobiles and emails. Please continue to attempt registration, there is no need to contact us Quotes update: All outstanding retirement quotes will be issued to members by the end of June. Please see our Quotes Hub for information and support. Please note we cannot escalate any quotes in advance of the end of June whilst we work through this distribution.

Employer Knowledge Article

EPN 749: Employer Contribution Rates and administration charges

Date posted: 25 June 2026

Audience

  • Pension leads

  • Payroll managers

  • Finance managers

  • HR Directors

Summary

This EPN provides information on the changes in the employer contribution rates and administration charge from 1 April 2027. These rates have been calculated based on the latest actuarial valuation.

Actions

  • To instruct your payroll provider to amend contribution rates as noted in this EPN

  • To inform colleagues (as per the audience outlined above) of the change in rates

Timing

  • Informing payroll providers and colleagues: as soon as possible

  • New rates apply from: 1 April 2027

Detail

  1. A valuation of the scheme is undertaken every four years and provides the information required to set employer contribution rates. The 2024 Valuation has been completed, and a copy of the valuation report is available at: https://www.gov.uk/government/publications/2024-valuation-civil-service-pension-scheme . The new employer contribution rate for 2027 to 2031 is outlined below.

  2. In preparation for the valuation, HM Treasury announced that the SCAPE rate would be increased from CPI + 1.7% to CPI + 2.0%. As a result, the cost of providing benefits has reduced, and the employer contribution rate will reduce to 22.1% (excluding admin levy)

  3. Previously, the contribution rate included an administration levy of 0.27%, and this is also being reduced and will be 0.22%. The rate, including the administration levy, will be 22.32%.

  4. From 1 April 2027, the employer contribution rate will be 22.32%

  5. This reduction in employer contributions does not impact members' pension benefits.

Funding for public sector employers

  1. In the short term, the unfunded nature of the pension schemes means that any reduction in employer pension contributions is mechanically offset by higher in-year balancing payments from the Exchequer to the schemes.

  2. HM Treasury has confirmed the last funding settlement was based on employer pension contribution rates staying in line with the results of the 31 March 2020 valuations and that funding may be adjusted in light of the results of the 31 March 2024 valuations. It is intended that the combined funding and employer contribution rate changes will be cost-neutral for public sector employers. Please contact your departmental spending team to discuss how this contribution change will be considered in your funding settlement.

Partnership

  1. There are no changes to the Partnership pension employer rates at this time and the mini-ASLC (Accruing Superannuation Liability Charge) will remain at 0.5%.  A review of Partnership rates will be undertaken and a further EPN will be issued should changes be appropriate.

Contacts

All EPNs issued before EPN635 have been archived. You can find these on the National Archives website - scroll down to the EPN section to view the archived notices.

If you have a question about EPN distribution, want to receive EPNs in a different format, or need to be added or removed from the distribution list, contact: employerrelationshipmanagement@civilservicepensionscheme.org.uk.

You can find electronic copies of the Employer Pension Guide (EPG), current EPNs, and forms in the Employer Hub at www.civilservicepensionscheme.org.uk. 

This notice is for employers only and must not be shared with scheme members.