What does nuvos cost?

You will pay a variable contribution rate dependent upon your pensionable earnings. Details of the amount you will pay can be found on: https://www.civilservicepensionscheme.org.uk/members/contribution-rates/

(See question 11 for more information on what earnings are pensionable.)

11. Are all my earnings pensionable?

Your employer takes your contributions from your pay before working out the tax, so you will automatically receive full income tax relief. This is subject to HMRC limits.

Your employer makes contributions, set at a level advised by the scheme actuary, to provide enough funds to pay the pension as promised. You can find out more here: Employer Contribution Rates

As a general rule, only permanent items of pay are pensionable. This will include any allowances that your employer tells you are pensionable, but will not include payments such as overtime.

Bonus payments do not normally count as pensionable earnings.

You may also have some non-cash pensionable earnings. For example, some people’s pensions will take account of a uniform allowance, and others may have an allowance for accommodation. In these circumstances you and your employer will also pay contributions based on the equivalent cash value of this non-cash pensionable earnings. If you are on reduced pay during maternity leave (and in certain other circumstances) your employer will make contributions based on the pay that you would have expected if you were not off work.

You will usually make your contributions based on your reduced pay.

There is no limit on pensionable earnings in nuvos. However, if you have any linked benefits calculated on a final salary basis (see questions 41 - 43) then the earnings cap will normally apply to those benefits.

41. I have a preserved pension from the previous Civil Service pension arrangements – what happens to that?

The new State Pension was introduced on 6 April 2016, for people reaching State Pension age from that point onwards, replacing the previous two part state pension arrangements – Basic Pension and earnings related *State Second Pension (S2P).

Members of the scheme were contracted-out of S2P between 6 April 1978 and 5 April 2016, when contracting out ceased.

Due to the contracted out status between 1978 and 2016, members of the scheme paid lower rates of National Insurance contributions and did not build up entitlement to the S2P element of the previous two part state pension.

Your new State Pension amount will take into account any period you were contracted out of S2P, plus your National Insurance record between 6 April 2016 and your State Pension age.

* The State Second Pension (S2P) was previously known as the State Earnings-Related Pension (SERPS).