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Civil Service Pensions

Volume 453: debated on Monday 27 November 2006

To ask the Chancellor of the Duchy of Lancaster what the rates of employer contributions to the Civil Service pension schemes are; and if she will make a statement. (101306)

Employer contribution rates for members of the Principal Civil Service Pension Scheme (PSCPS) are assessed for each of four ranges of pay levels and are set at a level, which together with employee contributions, is intended to meet the costs of benefits accruing in the year. This approach is set out in Resource Accounts 2005-06 of Cabinet Office: Civil Superannuation, a copy of which is available in the Library for the reference of members. The current employer contribution rates expressed as a percentage of pensionable pay are shown in the table.

Salary band

Rate of employer contribution as a percentage of pensionable pay

£18,500 and under

17.1

£18,501 to £38,000

19.5

£38,001 to £65,000

23.2

£65,001 and over

25.5

A higher rate, of 26.5 per cent. of pensionable pay, is payable by the Prison Service for prison officers employed before September 1987 and who are entitled to enhanced benefits.

Most civil servants joining the Civil Service on or after 1 October 2002 can, as an alternative to joining the PCSPS, opt for a partnership pension account which is a stakeholder arrangement with an age-related employer contribution varying between 3 per cent. and 12.5 per cent. of pensionable pay. In addition, the employer will match individual contributions up to a maximum of 3 per cent. of pay.