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Taxation, work and welfare

Home >  Taxation, work and welfare >  Public Service Pensions (PSP) > What else is changing?

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What else is changing?

Employee contributions for most members of public service pension schemes rose in April 2012. This was announced as part of the Spending Review. Members of the Armed Forces were exempt from the increases and continue to make no contributions towards their pensions.

Further increases will be introduced in April 2013 and April 2014, and the Government will consult on implementation in due course. Overall, the changes will equate to an average 3.2 percentage point contribution increase for members of participating public service pension schemes.

The actual additional amount you pay will vary according to your pay and the public service pension scheme of which you are a member. For rates in 2012/13 you should check the scheme’s website for details:

• NHS Pension Scheme
• Teachers' Pension Scheme
• Civil Service Pension Scheme

The contribution announcements deliver the Government’s commitment to protect the lowest paid.  If you are a Teacher or a Civil Servant and you earn less than £15,000 a year (full-time equivalent - FTE) the changes mean you will not pay more towards your pension. If your full time salary is between £15,000 and £21,000 (£26,000 for Teachers) you will only pay an extra 0.6%.  For National Health Service staff, the changes mean you will not pay more towards your pension if you earn less than £26,557.

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