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

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, administered by Capita (which took over from MyCSP on 1 December 2025) and managed through the Civil Service Pension Portal.

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 were an active member between 1 April 2015 and 31 March 2022, the McCloud remedy gives you a choice for those years.

What it means for you:

•For the remedy period you can take the legacy benefits (classic, premium, classic plus or nuvos) or the alpha benefits, whichever is better for you.

•You make the choice at retirement, when the scheme shows you both figures. This is the Deferred Choice Underpin.

•Because of this, your remedy-period benefits are provisional until you make that choice at retirement.

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

There is nothing to do now. Keep your records, and check the position when your remedy information arrives.

Source: https://www.gov.uk/government/collections/how-the-public-service-pension-remedy-affects-your-pension

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: +£5,750
That growth, valued at 16×: £92,000
The allowance for the year: £60,000
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.