Civil Service Pension Scheme Changes

What is happening?

On the 1st of April 2015, a new civil service pension scheme will come into being in order to ensure that the provision of pensions remains affordable, and, as a result, sustainable.

Who will it affect?

The new scheme is likely to affect the majority of current Principal Civil Service Pension Scheme members, including those on the classic, classic plus, premium, and nuvos schemes, as well as most new members. However, precisely how the new system affects you will depend on how close you are to retiring. For instance, if you have fewer than ten years until retirement, you will mostly likely remain on the current scheme. If you are between ten and thirteen-and-a-half years away from retirement, you will be given a choice as to whether you would like to remain on the current scheme or change to the new scheme. Further, if you are more than thirteen-and-a-half years away from retirement, you will mostly likely proceed onto the new scheme.

How will this affect benefits received upon retirement?

The payment of benefits will be executed in two parts. The first part will constitute the benefits due based on your current civil pension scheme arrangement, and the second will constitute the benefits built up on the new scheme from the 1st of April 2015, or a later date, depending on when you join the new scheme.
What kinds of benefits will be paid out?

The new scheme will, in some cases, pay out a monthly income upon retirement, as well as ill health cover and a pension for your spouse or partner. The amount paid out will be worked out in proportion to the pensionable earnings of each year.

What other changes will occur?

The main change is that the NPA – that is, the earliest age at which you can receive pension benefits without suffering reductions – will be later than 65. You will also have the option of receiving your pension as a lump sum instead of a monthly payment. When you die, your spouse will be entitled to no more than three eighths of your total pension. Contributions will be taken from your salary prior to tax deductions, ensuring that when you receive your salary, there are no subsequent deductions. If you become too ill to work, or die before you retire, you or your family will continue to receive benefits.


The new civil service pension scheme is designed to be affordable as well as beneficial to pensioners. For more information, please visit if you require advice on how to manage your wealth, consulting with a registered Independent Financial Advisor is highly recommended.

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