The partnership pension account is a Defined Contribution pension scheme. Employer and, if applicable, employee contributions are invested in a savings plan that is designed to help the member build up a pension pot which they can use to take an income and lump sums. When an employee applies for partnership, they invest their contributions with the provider appointed by the Scheme Manager (Cabinet Office). The current partnership provider is:

  • Legal & General

For information on contributions and benefits, see the table below.

Contributions

  • The member decides how much they want to pay. They do not have to make any contributions. 
  • Employer contributions are based on pay before tax. Employee contributions are taken from net pay but the pension provider claims back tax on employee’s contributions which are then paid into their partnership account. You pay contributions as a percentage of the   member’s pensionable earnings. The percentage varies according to the member’s age. 
  • You will match any contributions that the member makes, up to a maximum of 3% of pensionable earnings. 
  • You also pay a mini ASLC (currently 0.5%) to pay for ill health and death benefits.

Benefits

The benefits are not predictable in the way that alphanuvospremiumclassic and classic plus benefits are.

The amount of retirement income will depend on several things. They are:

  • the amount of money that both you and the member have contributed; 
  • the investment returns on the contributions; and 
  • how they choose to claim their fund. They can select to buy an annuity, or take up to their full fund as a lump sum payment. 
  • if they choose to buy an annuity, the annuity rate which is used to convert the fund into a monthly income when the member retires and the type of annuity they choose; and 
  • if they choose to take a lump sum and the amount that they decide to take.
  • The 2014 Budget introduced more flexibility into the ways a member can access their partnership benefits, including the option to take all of their fund as a cash lump sum, and lexible draw down options. Members may have to transfer their fund to another scheme/provider to use some of the options available. 
  • Lump sum ill-health retirement benefits. 
  • Lump sum death benefits.

Membership

Available to all members eligible for membership of the CSP arrangements.

See section 4 (‘Your responsibilities when staff join’) for eligibility. 

When benefits become payable

Members do not have to retire in order to take their benefits. They can take their benefits from age 55.

Switching from partnership   to alpha and vice versa

Members who are eligible to join either partnership or alpha may switch between the two pension arrangements (irrespective of which one they choose to join first). Switching can occur at any point, but only once during a 12 month period. Members will need to complete the switch form and send it to their HR department two months before the switch date.

Switching from partnership   to nuvos and vice versa

Members who are eligible to join either partnership or nuvos may switch between the two pension arrangements (irrespective of which one they choose to join first). Switching can occur at any point, but only once during a 12 month period. Members will need to complete the switch form and send it to their HR department two months before the switch date.

Switching from partnership   to premium and vice versa

Members who are eligible to join either partnership or premium may switch between the two pension arrangements (irrespective of which one they choose to join first). Switching can occur at any point, but only once during a 12 month period. Members will need to complete the switch form and send it to their HR department two months before the switch date.

Switching from partnership   to classic or classic plus and vice versa

From 1 April 2018, partnership was expanded to all active members of the CSP arrangements, including those who joined before 2002. Therefore, members of classic or classic plus may switch to partnership and vice versa. Switching can occur at any point, but only once during a 12 month period. Members will need to complete the switch form and send it to their HR department two months before the switch date.

Published:
21 December 2021
Last updated:
21 December 2021