I was re-employed after retirement. What happens to my pension benefits?

For a member who has taken a partial retirement and then left and returned before taking their full retirement benefits, being re-employed after taking partial retirement does not have any effect on your alpha pension in payment.

If you are re-employed after full retirement this can affect your pension, depending on how long your break was between the periods of employment.

If you are re-employed within 28 days of the date you retired you are treated as if you did not retire. This means your pension will be cancelled, and the pension and lump sum you may have already received must be repaid.

You will become an active member again, and you will still have all the pension you have built up ready to be claimed at a later date

What about abatement?

Abatement is when your pension is reduced because your re-employed pay and your pension are more than the pay you received before claiming your pension.

No abatement is applied to the alpha pension.

Re-employment after retirement and the Principal Civil Service Pension Scheme (PCSPS)

This section only applies to members who were in the PCSPS (classic, classic plus, premium, or nuvos) before 01 April 2015, and then moved from that scheme into alpha.

It does not cover every aspect of the scheme; full details are set out in the scheme rules, which are the legal basis of the scheme. You can find copies of the PCSPS scheme rules on the Civil Service Pensions website.

Nothing in this guide can override the scheme rules. Every effort has been made to make this guide as accurate as possible, but in the event of any difference, the rules will apply. This guide is based on the rules current at the time of publication and there is no guarantee that any part of the rules will not change in the future. You should be aware that tax rates and limits are subject to change.

If this section applies to you, please read it carefully to understand the effect of re-employment after retirement on both parts of your pension.

I was re-employed or have taken a partial retirement, what happens to my pension benefits?

When you take partial retirement or are re-employed after getting your pension, any PCSPS pension that is in payment will be checked with your new earnings to see if any abatement must be applied.

What about abatement?

Abatement is when your pension is reduced because your re-employed pay and your pension are more than the pay you received before claiming your pension.

If you are re-employed, your PCSPS pension may be reduced due to abatement. Any alpha pension in payment will not be considered when assessing whether abatement applies.

Published:
14 December 2021
Last updated:
14 December 2021