There are four options when a secondment involves a member of the Civil Service Pension Scheme, summarised in Table 3:

Outward secondment arrangements for CSP members

Arrangement

Financial implications

Salary

Member remains an active member of Civil Service Pensions during secondment?

Applicable to part-time secondments?

ASLC (Employer Contribution)

Other payments

You pay Civil Service salary and employer's NI contributions(NOTE A)

Yes

Yes

You must pay the ASLC and recover the amount from the borrowing employer (NOTE E) (NOTE G)

Borrowing employer reimburses:

  • salary
  • employer's NI contributions

Secondee pays member's contributions(NOTE B)
(NOTE E)

Borrowing employer pays salary and employer's NI contributions

Yes

Yes

You must pay the ASLC based on notional Civil Service salary and recover the amount from the borrowing employer(NOTE E)
(NOTE G)

Secondee pays member's contributions based on their notional Civil Service salary (NOTE B) (NOTE E)

Borrowing employer payssalary and employer’s NI
contributions.

No.
Secondee joins borrowing employer’s
scheme, or
another arrangement. (NOTE C)
(NOTE F)
(NOTE I)

No

No ASLC is due.

No member’s contributions are due to the Cabinet Office Civil Superannuation Vote.At end of secondment the secondee may either:

  • take a preserved pension or terminal gratuity from the borrowing employer; or
  • transfer rights accrued under the borrowing employer’s scheme into the Civil Service Pension
    arrangements subject to the usual
    requirements. (NOTE H) (NOTE J)

Unpaid special leave

No (NOTE D) (NOTE J)

No

No ASLC is due.

No member’s contributions aredue to the Cabinet Office Civil Superannuation Vote.At end of secondment, secondee may either:

  • take a preserved pension or terminal gratuity from the borrowing employer; or
  • transfer rights accrued under the borrowing employer’s scheme into the Civil Service Pension arrangements subject to the usual requirements.
    (NOTE H) (NOTE J)

Notes

A You should continue to make deductions for employee’s national insurance contributions, national savings, trade union subscriptions etc. from the member’s salary.

B Member contributions may include:

  • widow’s or widower’s pension contributions;
  • added years contributions;
  • AVCs.

These contributions are based on assumed pay:

  • the notional civil service salary for classic members; and
  • the ‘assumed’ civil service salary for premium members.

The individual can choose to either retain accrued pension benefits in the CSP arrangements (see D below) or transfer their benefits to the borrowing employer’s scheme. The Scheme Administrator can give you information about how a transfer is made.

D Accrued pension benefits are retained in the CSP arrangements. The period of secondment does not reckon towards CSP arrangement benefits. But a transfer value of the benefits the member accrued in the borrowing employer’s scheme can be made into the CSP arrangements. Those who are on unpaid (or paid) special leave are not covered by the Civil Service Injury Benefit Scheme.

E You must send the ASLC paid by the borrowing employer and the employee’s pension contributions to the Cabinet Office Civil Superannuation Vote. You must also send partnership and AVCs to the relevant pension provider. The Scheme Administrator will keep the secondee’s pension record. You must tell the Scheme Administrator that the member is a secondee.

F If the borrowing employer’s scheme is by-analogy to the CSP arrangements, the secondee may not be able to join the by-analogy scheme. This is because, like the CSP arrangements, by-analogy schemes may not allow inward secondees to join the scheme.

G The borrowing employer normally meets the ASLC cost. However, the secondee can pay the ASLC or they and the borrowing employer can meet the cost together. There may be occasions when you wish to provide the services for a member free or at a reduced charge. If you do this you must pay the full ASLC to the Cabinet Office Civil Superannuation Vote. In exceptional circumstances the Scheme Manager (Cabinet Office), may agree before the secondment starts, to reduce or waive the ASLC.

H The borrowing employer’s scheme will pay a transfer value to the Civil Service Pension Scheme. The Scheme Administrator will use this to calculate the member’s service credit using their salary on their return.

J A secondee who does not remain a member during their secondment cannot continue to pay added years or added pension contributions during their secondment. They can resume paying added pension contributions when they return to the CSP arrangements. To make up the pension that they were unable to buy, the member could increase their contributions.

Published:
4 January 2022
Last updated:
4 January 2022