Plan details
You are being offered the opportunity to join the Partnership Pension Account - a Group Stakeholder Pension plan provided by Phoenix Life Limited, trading as Standard Life.
It's important you make an informed decision so you should read the key documents at the bottom of this page.
And you can find answers to common questions in our FAQs
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How joining this plan will work
Invitation from your employer
You should get an invitation from The Civil Service once you start work.
When you start working for The Civil Service, you’ll be invited to join this pension plan. There may be a waiting period before you join - please speak to your employer if you have any questions about this.
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Make sure it's right for you
Paying into a company pension can be a great way to save for the future. And you can stop or change your payments in the future if you need to. If you decide you want to join, speak to your employer about next steps.
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Decide how much to pay in
It's up to you how much you pay in as long as you meet the minimum amount set by your employer.
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Payment options for this plan
The Civil Service will pay 17.75% (depending on your age) of your pensionable salary into this pension plan.
Your employer will pay in an amount equivalent to a percentage of your pensionable earnings based on your age at the start of each tax year as shown in this table:
| Your age | Your payment | Employer's payment | Total payments |
|---|---|---|---|
| 30 and under | 0% | 8% | 8% |
| 1% | 9% | 10% | |
| 2% | 10% | 12% | |
| 3% or more | 11% (maximum) | 14% or more | |
| 31-35 | 0% | 9% | 9% |
| 1% | 10% | 11% | |
| 2% | 11% | 13% | |
| 3% or more | 12% (maximum) | 15% or more | |
| 36-40 | 0% | 11% | 11% |
| 1% | 12% | 13% | |
| 2% | 13% | 15% | |
| 3% or more | 14% (maximum) | 17% or more | |
| 41-45 | 0% | 13.5% | 13.5% |
| 1% | 14.5% | 15.5% | |
| 2% | 15.5% | 17.5% | |
| 3% or more | 16.5% (maximum) | 19.5% or more | |
| 46 and over | 0% | 14.75% | 14.75% |
| 1% | 15.75% | 16.75% | |
| 2% | 16.75% | 18.75% | |
| 3% ore more | 17.75% (maximum) | 20.75% or more |
You do not have to make any payments into your plan. However, you should think about whether or not paying into the plan will get you the lifestyle you want when you stop working. If you want to, you can change your payments once you've joined this plan.
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How payments are made
There are two ways that you can make payments into your pension plan. Both give you tax benefits but work in different ways. Please speak to The Civil Service to find out how your payments will be taken.
- Salary Exchange
This means payments will be taken from your salary before tax and National Insurance (NI) are calculated. You and The Civil Service may pay less NI and you won't need to reclaim any tax relief from the government manually. It's important to remember that Salary Exchange isn't right for everyone. It's a change to your terms of employment and could affect your entitlement to state benefits or your ability to borrow.
You can see examples of how Salary Exchange could increase your pension payments or your net take home pay in these documents:
- Payment from after-tax earnings
This means The Civil Service will deduct your payments from your after-tax earnings and pay them to Standard Life on your behalf. The government then adds tax relief on top of your payments - boosting the amount that gets paid into your pension plan. Tax relief will be applied at the basic rate of income tax so if you normally pay more tax, you'll need to reclaim this from the government manually.
You might be able to change the way you make payments into your pension plan - please speak to The Civil Service to find out what your options are.
Increasing your payments
You can increase your payments beyond 3% but The Civil Service will contribute a maximum of 17.75% (depending on your age). However, increasing your payments could still make a big difference to your lifestyle in retirement.
Pension allowances
There's a limit to the amount that can be paid into your pension plans each tax year without paying a tax charge - for most people this is normally 100% of your earnings, capped at £60,000. But in some circumstances - including if you have taken income from one of your pension plans - it could be lower. You can find out more about the Annual Allowance on standardlife.co.uk.
Lifetime allowance
Up until 5 April 2024 the Lifetime Allowance was the maximum amount of pension savings you were allowed to build up during your lifetime and take some of the benefits tax-free.
The limit for the 2023/24 tax year was £1,073,100 but could be higher if you are registered for any form of Lifetime Allowance Protection.
From 6 April 2024 onwards the Lifetime Allowance was replaced with limits on the tax-free benefits instead.
It’s important that you understand how these changes may affect your retirement planning.
Lump Sum Allowance and Lump Sum and Death Benefit Allowance
From 6 April 2024 onwards HMRC have placed limits on the amount of tax-free benefits that can be taken from pension schemes both during your lifetime and on your death.
The standard Lump Sum Allowance is £268,275 and the standard Lump Sum and Death Benefit Allowance is £1,073,100. These allowances reduce each time you take benefits.
If you hold one or more of the Lifetime Allowance Protections given by HMRC then you will be entitled to higher allowances that reflect this.
There’s more information on these allowances on standardlife.co.uk, and we’ve also created Questions and Answers to help explain the changes and you can visit the HMRC gov.uk/tax-on-your-private-pension.
These allowances aren't an issue for most people, but it's a good idea to check. For more information download our Guide to tax relief, limits and your pension.
Cancelling your plan
A company pension is one of the most rewarding ways to save for the future. But it's your choice and you can cancel your plan if you want to.
You have 30 days to decide if you want to cancel your plan. The 30-day period starts from the date you receive your plan documents from Standard Life. If you cancel within the 30 days, you'll get back any payments you've made. However, if you stop making payments after the 30-day period has ended, you won't get your money refunded - it will stay invested in the company pension and charges will continue to be deducted until you retire.
If you decide you want to cancel, you can contact Standard Life over the phone or in writing, confirming that you want to cancel your plan. Remember to include your plan number in your letter - you can find this number in your plan documents.
Rejoining the company pension
If you decide to cancel, you can ask to rejoin the company pension at any time. Ask your employer for more information - they'll tell you if it's possible for you to rejoin and how you can do this. If you rejoin, your employer will set you up with a new plan.
The downsides of cancelling
If you cancel, you won't receive any payments from your employer. You may also lose some of the tax benefits if you put your money somewhere else.
Investment choices and charges
Important documents
These documents will help you understand how this plan works, so you can decide if it's right for you. It's a good idea to keep or save a copy of each one.
A guide to your pension
A "Welcome" guide to the Partnership Pension Account and the available investment options, including with-profits.
Product Information
Read these documents to understand the features of your employer's pension plan in detail.