Date posted: 26/10/2004


A number of employers have introduced, or are planning to introduce, salary sacrifice arrangements under which employees will receive childcare vouchers or other benefits. Such arrangements could reduce the pension of some members.

This Notice will be of particular interest to:

  • HR policy teams
  • HR managers who are dealing with childcare provision, the Home Computing Initiative or other salary sacrifice issues


  • If your organisation currently operates such arrangements or is planning to do so, you will need to incorporate the information given in this EPN in any guidance you issue.
  • You must make members of premium and classic plus aware of the potential impact of salary sacrifice arrangements on their civil service pension and also inform them of the potential impact on any future state benefits they may claim. For this purpose, you will find model text at the end of this EPN.



This advice is provided as additional pages for section 5 of the Employers’ pension guide. It will be incorporated when section 5 is next updated.


Enquiries about content:

Employer Helpdesk
01256 846414

Enquiries about distribution of EPNs:

Judith Hornby
01256 846201


26 October 2004
Last updated:
24 April 2023