The Government accepted the recommendations for pension reform following Lord Hutton’s independent review of public service pension schemes in 2010. These recommendations have been used as a basis for consultation with trade unions and public sector workers since then.
The changes to Civil Service pensions are in two stages:
- April 2012: Scheme member contribution increases – In April 2012 monthly pension scheme member contributions increased for the majority of Civil Servants. Following consultation with the Civil Service trade unions further increases have been decided for 2013-14. The Cabinet Office will hold separate discussions with the trade unions about further changes to contribution rates for 2014-15
- April 2015: A move to a new pension scheme - the current Civil Service pension schemes will be reformed more broadly, with a move to a new career average scheme for the majority of Civil Servants from April 2015.
How will the contribution increases affect me?
The Government has announced changes to the contribution rates that the majority of civil servants pay to their Civil Service Pension. Lower earners are protected from any increase.