Adviser > Technical Central > Pre simplification > PersonalPension/Stakeholder > Civil Service Pensions - Partnership Pension Account.
Civil Service Pensions - Partnership Pension Account.
The content of this page is based on our understanding of how pensions worked before A-Day, the 6 April 2006, and is provided for reference only.
Historically civil servants had access to the Principal Civil Service Pension Scheme (PCSPS). From 1 October 2002 four pension schemes were made available: namely Classic, Classic Plus, Premium and Partnership. The four schemes offer different types of benefits.
Civil Service Pensions - Classic Scheme - This scheme is final salary and is closed to new entrants. Civil servants who were members of the PCSPS prior to 1 October 2002 who decided not to join any of the other civil service pension schemes are automatically members of this scheme.
Civil Service Pensions - Classic Plus Scheme - A final salary scheme closed to new entrants. Members are employees who were members of the PCSPS on 30 September 2002 who decided to join this scheme. It is a combination of Classic benefits for service up to 30 September 2002 and the equivalent of Premium benefits from 1 October 2002.
Civil Service Pensions - Premium Scheme - Final salary scheme open to employees who were members of the PCSPS on 30 September 2002 and chose to join this scheme with effect from 1 October 2002. This scheme is open to new entrants.
Partnership - A stakeholder pension scheme open to all employees who are not members of one of the other schemes.
This overview outlines the features of the Partnership scheme. Overviews of the other schemes are available by clicking on their names above.
All the Civil Service Schemes are being reviewed by the Government. They plan to move from a final-salary scheme to a whole career scheme and also want to alter the pension age from 60 to 65. The consultation ended on 4 March 2005, however no decision has yet been reached.
Administrator & website address
To find out who the administrator is, look up the Helpline on the Civil Service Pensions Website
Look up the organisation the member works for e.g. Home Office. An alphabetical list is provided on the Helpline page of the website.
Contracted-out
Can discuss contracting-out with stakeholder scheme provider.
Contribution basis
Member contribution - Member does not have to contribute.
The maximum contribution is the greater of £3,600 p.a. and an age-related proportion of taxable earnings.
The age-related percentages can be found here: Personal Pension/Stakeholder
Employer contribution - Based on age at the last 6 April, the percentage of pensionable earnings payable by the employer is:
- Under 21 - 3% p.a.
- 21 to 25 - 4.5% p.a.
- 26 to 30 - 6.5% p.a.
- 31 to 35 - 8% p.a.
- 36 to 40 - 10% p.a.
- 41 to 45 - 11.5% p.a.
- 46 or over - 12.5% p.a.
In addition to the above the employer will also match member’s contributions of up to 3% p.a.
Salary definition
Pensionable earnings - Permanent items of pay are pensionable. This may include non-cash earnings, e.g. uniform allowance (Bonus may be pensionable at the discretion of the employer).
Normal retirement benefitsNormal retirement age - Benefits can be taken between ages 50 and 75 and the member can continue to work. Any contracted-out benefits cannot be taken prior to age 60.
The fund can be used to purchase a pension or member can elect to take income drawdown.
Members can choose whether or not to provide a pension after death for dependant(s).
Early retirement on the grounds of ill-health
Subject to consent from the medical adviser, a lump sum may be payable. This works out as 20% of pensionable pay for every year of service, up to a limit of 3 years pay. This benefit is only payable if the member has more than 2 years service.
Retirement lump sum
Tax-free cash of up to 25% of the non-protected rights fund can be taken.
Pension increases
Members can choose how they want their pension to increase.
Death before retirement benefits
Lump Sum - 3 times pensionable earnings, plus the value of the pension fund.
Death after retirement benefits
Survivor(s) can choose what (if any) type of pension/income they want.
Early leaver options
Transfer value - Members can transfer benefits at any time.
Preserved pension - Member can stop and restart contributions at any time.
Refund of contributions - No refund of contributions allowed.
Treatment of pension rights on divorce
Earmarking - The court can order the scheme to pay all or part of the pension and lump sum. The scheme will only make payments to the former spouse when a court order has specifically instructed them to do so. If the former spouse remarries, he or she will not receive payments in respect of the pension after date of remarriage, however this normally does not affect the lump sum which has been earmarked.
Pension sharing on divorce - The accrued pension rights are reduced by a percentage confirmed by the court. The former spouse can transfer this amount - known as the pension credit - to the scheme of their choice.
Any research and analysis included has been provided by us for our own purposes and the results of it are being made available only incidentally.
Updated 5 August 2005
For professional advisers only
