Taxation, work and welfare

What are the changes?

Over recent months the Government has been in discussions with employers and unions about the changes to public service pension schemes. These discussions have now reached a conclusion and the new scheme designs have been set for the following schemes. You should follow the link to the scheme website to find out what the specific scheme design changes are:

If you are in one of the other public service pension schemes the new structures have not yet been agreed. More information about the other public service pension schemes will follow.

Introduction of a career average scheme

If you are currently in a final salary scheme, when the changes come into effect in 2015 your pension will be worked out differently.

Your pension will be worked out using the salary you earn in each year during your career rather than your salary at retirement.

You may have heard this referred to as moving from final salary to career average.

Change of retirement age

Your retirement date will be changed so that it is the same as the date you take your state pension.

You will be able to retire earlier than this and no one will be forced to work longer. Current public service workers can draw the full pension benefits they have earned under their current pension scheme at their current normal pension age. For many people who are near retirement, this will be 60. However, you may choose to work longer and earn more pension benefits under the new scheme.