What benefits will I be giving up if I opt out of the Civil Service pension?

If you opt out of your Civil Service pension, you’ll be giving up a range of valuable benefits to which you and your family may be entitled.

• A pension payable for life and fully guaranteed by the government
• A tax-free lump sum cash option upon retirement
• Generous employer contributions
• An ill health pension should you become too unwell to work
• Protection for your loved ones - should you die a spouse/partner/civil partner pension may be due and also children’s pensions, plus a death benefit lump sum if you die in service.

You’ll also lose the tax relief on the contributions you pay, so opting out may only result in a marginal increase in cash in your pocket each month. Although it may seem that you’re paying a large percentage of your pay towards your pension, your pension contributions are not taxed and therefore your contributions actually cost you less than the rate shown on your payslip. Your tax is worked out on your pay after your pension contributions have been taken. 

You’d break the final salary link to any legacy pension scheme (classic, classic plus, premium and nuvos), if applicable, unless you opt back into alpha within five years.

You can read the main scheme guides for more information on the benefits you will get by being a member of the Civil Service pension scheme.