Civil Service Pension (alpha): Annual Allowance & McCloud Guide

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McCloud and the Civil Service Pension Scheme

35 s · Captions on · Official sources checked 30 September 2026
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The scheme at a glance

Who it is for

Civil servants in alpha, administered by Capita for Civil Service Pensions

Accrual rate

2.32% of your pensionable earnings earned as pension each year

Revaluation

In line with prices (CPI), set by an HM Treasury order each year

Normal Pension Age

The later of your State Pension Age or 65

How the alpha Civil Service Pension works

alpha is the career-average (CARE) pension for civil servants in Great Britain, administered by Capita (which took over from MyCSP on 1 December 2025) and managed through the Civil Service Pension Portal. Northern Ireland civil servants are in a separate scheme, run in-house by Civil Service Pensions NI (Department of Finance); the Annual Allowance works the same way.

How your pension builds:

•You earn 2.32% of your pensionable earnings as pension in each year of service.

•Each year's slice is revalued in line with prices (CPI), set by an HM Treasury order each year, so it keeps its value. alpha does not add a fixed percentage on top.

•Normal Pension Age is the later of your State Pension Age or 65.

•You track and manage it through the Civil Service Pension Portal.

Legacy service:

•Service before you moved to alpha may sit in a legacy scheme: classic, premium or classic plus (final salary), or nuvos (career average).

•All active members moved to alpha from 1 April 2022, following the McCloud changes.

Source: https://www.civilservicepensionscheme.org.uk/

The McCloud remedy for civil servants (2015 to 2022)

If you are in scope, your service from 1 April 2015 to 31 March 2022 was rolled back into your legacy scheme: classic, classic plus, premium or nuvos. You then choose legacy or alpha benefits for that period.

Who is in scope:

•You were a member, or eligible to be a member, of a public service pension scheme on 31 March 2012.

•You were a member of a public service pension scheme between 1 April 2015 and 31 March 2022.

•The two periods were continuous. A break of less than five years still counts as continuous.

New entrants who were enrolled into alpha when they joined the Civil Service are not affected.

When you choose:

•If you retired and claimed benefits before 1 October 2023, you get an immediate choice. A Remediable Service Statement sets out your options, and you have 12 months from the date of the letter to choose. If you choose the other benefits, the difference is backdated and paid with interest.

•Otherwise you choose between legacy and alpha benefits when you retire. This is the Deferred Choice Underpin.

•The other benefits are not always better: many members who retired before October 2023 keep the pension already in payment.

•The remedy can change your Annual Allowance position for those years, so a past pension-tax charge may need revisiting.

Keep your records, and check the position when your remedy information arrives.

Source: https://www.civilservicepensionscheme.org.uk/memberhub/kbarticle/?id=KA-01242

Why a step into the Senior Civil Service can trigger a charge

The Annual Allowance is where civil servants most often meet an unexpected tax bill, and a step into the Senior Civil Service is the classic trigger.

Why a promotion matters:

•A move into the Senior Civil Service raises your pay, which raises how fast your promised pension grows.

•That growth is valued at 16 times the yearly increase, so one large rise can cross the £60,000 Annual Allowance.

•The scheme may not warn you, because it does not always know your other income or pensions.

Also worth watching: a high-inflation year, fixed-term or acting-up pay landing in a single year, and outside income that can taper your allowance.

Source: https://www.gov.uk/guidance/pension-schemes-work-out-your-tapered-annual-allowance

When advice fees can be reimbursed

For the 2015 remedy, the Civil Service scheme can reimburse advice on your tax position, plus reasonable costs to resubmit information to HMRC.

What you can claim:

•Up to £500 for advice on your remedy-period tax position.

•Reasonable agent or accountant costs to resubmit to HMRC, case by case with no set cap.

Source: https://www.civilservicepensionscheme.org.uk/memberhub/kbarticle/?id=KA-01252

Illustrative example

How a step into the Senior Civil Service can trigger a £12,800 bill

A civil servant is promoted into the Senior Civil Service, where entry pay starts around £81,000. The rise re-rates their classic or premium legacy service, and the promised pension grows by about £5,750 in the year. Valued at 16×, that runs well over the allowance.

Rise in the yearly pension, above inflation: +£5,750
That growth, valued at 16×: £92,000
The allowance for the year: £60,000
Illustrative tax on the £32,000 over the limit, at 40%: ≈ £12,800

Illustrative figures based on this scheme’s typical senior pay and a representative promotion. Your own Annual Allowance position depends on your service history, income and scheme rules.

Related guides

These guides cover the questions that usually come up next. They are written with NHS examples, but the Annual Allowance and McCloud rules they explain apply right across the public sector.

Annual Allowance

The £60,000 limit, the 16x valuation, and the taper explained.

Carry Forward

Use unused allowance from earlier years to reduce a charge.

McCloud Remedy

How the remedy period works and what your statement will show.

Illustrative, and independent

The worked example uses standard Annual Allowance mechanics and a representative promotion; your own position depends on your service, income and scheme rules. This guide is educational and is not personal advice. Remedy is not affiliated with Civil Service Pensions, Capita, MyCSP, or HMRC.