How will pension contribution increases affect me?

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In 2010 the Government announced that pension contributions for public service workers would rise by an average of 3.2% of pay. This will take place over three years. The first increases for most Civil Servants started in April 2012. Following consultation with the Civil Service trade unions further increases have been decided for 2013-14. Further increases will apply from April 2014 but there are no proposals yet on the details and discussion with the Trade Unions has not begun.

These increases do not apply to those who earn less than £15,000 (salary and pensionable allowances on full time equivalent pay).

Higher earners will pay more as a percentage of their pay. No-one’s contributions will increase by more than 6% of pay over the three years. For all but some high paid employees, the contribution your employer makes to your pension will still be significantly higher than your own.

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