Spring 2025
Welcome to the Civil Service Pensions newsletter! The essential source of news and information about your pension.
Welcome to the Spring 2025 edition for pensioner members of the Civil Service Pension Scheme.
With the promise of better weather and longer days, we kick-start Spring with our largest member communication of the year, the Pensions Increase and P60 mailing. This year’s Pensions Increase takes effect from Monday 7 April, details of which are below, plus information about why a member may not get the full increase. There's also a short video explaining your P60 certificate (which you'll receive with your pensions increase letter).
The Civil Service Retirement Fellowship is one of our trusted partners and is dedicated to helping former civil servants and their dependants make the most of their retirement. This year, the charity is celebrating its 60th anniversary with many activities. If you’re interested in getting involved, please visit the CSRF website.
We get a number of queries from members asking about what impact their Civil Service pension may have on their State Pension, to help explain how both pensions work together, we’ve included a short article below.
From April 2027, it is anticipated there will be new Inheritance Tax rules put into place. While we don’t have all the information as yet, please read on to find out what we do know.
It’s vital that we maintain a fulfilling and healthy life in later years, it’s important to prioritise your wellbeing, so ensure you look after your physical, mental and emotional health. Staying active, engaged, and connected can help us feel good and embrace the opportunities that come with retirement.
Finally, we would love to hear your feedback about this newsletter. Use the online form to tell us what you’d like to see in future issues, what we can do better or differently. It’ll only take a few minutes to complete.
Simon Claydon
Director of Civil Service Pay, Policy & Pensions
How much will your pension increase in 2025?
Each year, pensions in payment are reviewed every April in line with Treasury Orders. This review is called ‘the annual Pensions Increase (PI)’ and takes effect on the first Monday on or after 6 April every year.
This year, the PI takes effect from Monday 7 April 2025.
The increase will be 1.7%.
Your pension is paid in arrears so you may not see the full increase until the following month’s payment.
*Please note: any pension increase is pro rata for the previous tax year. For example, if you’ve been retired for five months, you’d be eligible for an increase equal to 5/12ths of the full annual increase
FAQs
There are a number of reasons why you may not have received the full 1.7% increase:
- Check your tax code on your payslip. If you think it's incorrect, contact HM Revenue & Customs directly on 0300 200 3300.
- Pay dates – your pension is paid in arrears. Depending on when your pay date is in the month, you may not see the full increase until next month.
- Not all members are eligible for the full 1.7% increase - if you reached state pension age before 6 April 2016 and you were working in the Civil Service prior to 6 April 1997, part of your Pensions Increase is paid within your state pension. Therefore, if you didn’t receive the full 1.7% in your occupational pension, you will have received an increase in your state pension to compensate.
This may be due to a change in your tax code. You can check your tax code by logging into the Pension Portal, by looking at your payslip or by logging onto your HM Revenue & Customs account.
If it has changed, you will need to contact HM Revenue & Customs directly on 0300 200 3300.
Learn about your P60
We'll be posting P60s to all pensioner members between April and May. This short video provides a quick guide to your P60.
Stay updated with the latest news and information for pensioner members
Make friends over lunch
The Civil Service Retirement Fellowship (CSRF) provides local community groups throughout the UK, dedicated to helping Civil Servants and their dependants make the most of retirement. They are looking for a new group of volunteers in areas where they do not currently have a local branch.
They have received expressions of interest in attending a lunch group from members in the following areas: London (South Bank), Orpington, Kettering, Basingstoke, Andover, Folkestone, Cambridge, Kilmarnock, and Abergele.
If you live or work in any of these areas and are interested in co-ordinating a local lunch group, the CSRF would love to hear from you. For more information:
- call 020 8691 7411 or
- email: enquiries@csrf.org.uk
If you would like to attend a group, you can find a list of over 50 active community groups...
Stay Healthy and Happy in Retirement – 6 Key Tips
To maintain a fulfilling and healthy life in later years, it’s important to prioritise your wellbeing. As we transition from a structured work life to more free time in retirement, looking after our physical, mental, and emotional health becomes even more essential.
Here are six tips to help you enjoy a higher quality of life...
Keep Active:
How we stay physically active varies for each of us. The NHS guidelines recommend:
- For adults up to 64:
- At least 150 minutes of moderate-intensity aerobic activity per week.
- Strengthening activities targeting all major muscle groups at least twice a week.
- Exercise spread over 4 to 5 days a week, or daily.
- Reducing sedentary time and breaking up long periods of inactivity with movement.
- For adults aged 65 and over:
- Being physically active every day, even if it’s just light activity.
- Engaging in activities that improve strength, balance, and flexibility at least twice a week.
- Doing at least 150 minutes of moderate-intensity activity per week or 75 minutes of vigorous-intensity activity.
- Minimising sedentary behaviour and breaking up long periods of inactivity.
The Civil Service Sports Council also offers sports, games, fitness, health and wellbeing opportunities for members.
Check your Finances:
An accurate budget ensures that your income covers your needs and outgoings. With the continued cost of living challenges, it may be time to review your finances and make sure every penny counts.
Use MoneyHelper’s free budget planner to track your money and get tailored financial advice.
Stay Socially Connected:
Maintaining social connections boosts mental health, strengthens the immune system, and can even increase lifespan.
- Age UK: Offers support and activities for older people.
- MeetUp: Helps you find local events and interest-based groups.
- The Silver Line: Provides a confidential helpline for older people.
Volunteer:
Volunteering allows you to give back to the community, gain new skills, and build social connections.
Find volunteering opportunities in your area:
Get Regular Health Check-Ups:
The NHS offers health checks every five years for people aged 40-74 with no pre-existing conditions. If you think you’re eligible but have not been invited, contact your GP or local council. Find out more at NHS Health Check.
Keep Learning:
Lifelong learning can enhance wellbeing by broadening your knowledge, fostering social connections, and promoting personal growth. Here are three learning resources:
- University of the Third Age (U3A): Offers learning and social activities for older people.
- Open University Free Courses: Provides a range of free online courses.
- Your Local Library: Find your nearest library for learning resources.
Your State Pension – What You Need to Know Before You Claim
Find Out How Much You Will Receive
Check your State Pension forecast online:
One of the most common questions we receive is “How does my Civil Service Pension affect my State Pension?”
The answer relates to Contracting Out, which affects members who were in service before 6 April 2016.
Contracting Out Explained
Historically, the State Pension had two parts:
- The Basic State Pension
- The State Second Pension (income-related)
To receive the full weekly State Pension, you must:
- Have worked in the UK
- Made 35 years of full National Insurance contributions
- Reached State Pension Age
Between 6 April 1978 and 5 April 2016, the Civil Service Pension Scheme was contracted out of the Additional State Pension. As a result, members with service before 6 April 2016 might receive less or no Additional State Pension.
Guaranteed Minimum Pension (GMP)
GMP ensures that individuals contracted out between 6 April 1978 and 5 April 1997 receive a pension at least equal to what they would have received if they had not been contracted out.
If you were contracted out of the Additional State Pension between 6 April 1978 and 5 April 1997, your Civil Service Pension includes a Guaranteed Minimum Pension (GMP). This means you will not receive additional payments from the State Pension for that period. However, if you wish, you can choose to buy out the reduction in your State Pension with a lump sum payment.
Celebrating 60 Years of the Civil Service Retirement Fellowship
2025 marks an extraordinary milestone for the Civil Service Retirement Fellowship (CSRF), as they celebrate 60 years of service to retired civil servants across the UK.
Now, they’re reaching out to you - the very people who have helped build this legacy - to join them in strengthening and growing this invaluable network for the future.
Inheritance Tax Changes...
Will Your Pension Be Affected?
The Chancellor announced in the Autumn 2024 Budget that the inheritance tax threshold will stay the same until 2030. However, from April 2027, Defined Contribution and Defined Benefit pensions will be subject to Inheritance Tax (IHT).
What’s a Defined Benefit pension?
With a Defined Benefit pension, members pay a set percentage each month in return for a guaranteed annual payment in retirement (instead of saving into a pension pot).
What’s a Defined Contribution pension?
Defined Contribution pensions are investment-based, meaning the money you and your employer pay into your pension pot is invested. The amount you receive at retirement depends on how well these investments perform over time, the partnership scheme is Defined Contribution. Additional Voluntary Contribution (AVC) schemes are Defined Contribution schemes also. So, any CSAVCs not taken when these changes come into effect could be subject to the new rules
Will My Civil Service Pension Be Affected?
As it currently stands, Public sector Defined Benefit pensions are likely to be exempt. The partnership and CSAVC schemes are likely to be affected. The legislation for these changes has not been finalised and could still change. For the latest updates, visit the How Inheritance Tax Works page at www.gov.uk
Charity for Civil Servants - Get the Help You Deserve
Did you know that the support you received from the Civil Service during your career continues into retirement? There’s a whole community of support available to you and your family.
The Charity for Civil Servants (CFCS) supports current, former and retired Civil Servants facing financial or personal difficulties. They offer help with:
- Money
- Health & Wellbeing
- Caring Responsibilities
- Bereavement
- Gambling and Addiction Support
You’ll need to register and create an account on their portal. Once registered, you can log in to check for messages and track your application's progress.
Email: help@cfcs.org.uk or Telephone: 0800 056 2424 (lines are open Monday - Friday, from 10am to 1pm).
The Civil Service Pensions Podcast
Season 3 of our podcast launched earlier this year. If you’d like to know what two retirees from the scheme are doing, listen to episode 1 featuring Gillian and episode 3 featuring Patrick.
There are also more case studies in Seasons 1 and 2, plus lots of minisodes for a quick easy listen.
Get instant access to your pension online
The Pension Portal is a convenient and quick way to manage your pension. Inside your secure Pension Portal account, you can view and print copies of your P60 and payslips, look up the yearly Pensions Increase and update your personal details.
Registering for your account is easy, just follow our step by step guide or watch the video