Who is it for?
All civil servants.
What do I get?
You have the option of either joining the Alpha or Partnership schemes.
The Alpha Pension Scheme
The Alpha pension scheme is a defined benefit pension scheme worked out on a Career Average basis. A Career Average pension scheme means you build up a pension based on a percentage of how much you earned each year. It is a scheme to which you and the MOD both make contributions. It is a way of saving for your retirement. Over the years, you and your employer contribute to the scheme. When you retire, you are paid a pension based on your pensionable earnings during your career. Your annual pension amounts increase with the Consumer Price Index (CPI) every year.
Employee contributions rates are between 4.6% and 8.05%. MOD will also contribute between 26.6% and 30.3% towards your pension depending on salary.
The Partnership Scheme
The partnership pension account is a way of saving for your retirement. It is a defined contribution scheme. The MOD will make contributions to the scheme provider. These contributions, together with any contributions you choose to make, will be held within a stakeholder pension, which is a type of personal pension. If you open a partnership pension account the MOD will contribute to your fund even if you choose not to. The contributions grow with investment returns (the money your invested pension earns) over the years. When you retire, you can take some of your pension 'pot' as a tax-free lump sum. You use the rest of your pension pot to provide you with an income for the rest of your life. This is called an annuity.
New starters will automatically be enrolled into the Alpha pension scheme.
Of course, you also have the choice not to join a pension scheme. This is called 'opting out'. You can find more about opting out, and opting back in, by going to the appropriate pension website.
How do I claim?
When you join the Civil Service you will receive an option pack giving details of the schemes that you can join.
Visit Civil Service Pensions for further details on each of the schemes.
Make a choice by completing the form contained in your New Starter Pack within 3 months of joining and send the completed provider application form and Pension Choices to the address given on the choices form.
What happens next?
You will begin to make contributions on pensionable earnings which is deducted directly from salary. If you do not make a choice you will be automatically enrolled into the Alpha pensions scheme.