Why has my civil service pension gone down? A new tax code is one cause; a recalculation, a repaid overpayment or a court order are others.
Start by finding out whether your gross pension fell or only the money reaching your bank, because the causes differ. A payslip that puzzles you may trace back to your wider income. An FCA-authorised adviser can study that with you, at no cost; to ask for it, submit the form on this page.
Has my pension itself changed, or only what I receive?
The scheme's payslip guide says the payslip "shows your gross pension, which is the full amount of pension due for the period shown, before any deductions are taken." The net figure is what is left after deductions, and income tax is the most common one.
If gross is unchanged and net is lower, something is being deducted, so start with the next section. If gross has dropped, the pension itself has been recalculated or reduced, which the sections after that cover.
A payslip is itself a clue. You will usually only receive one if your gross pension has changed, or if the amount you receive has moved by more than £5 since your last payment. For a change in the gross annual rate of a classic pension, the scheme says it sends an advice note with the new details.
Is a tax code change the reason my civil service pension payment has dropped?
It is the first thing to rule out. The scheme deducts whatever tax HMRC's code tells it to, and its guide adds that "Deductions may be provisional until we have received the proper code." Its yearly increase FAQ makes the same point when a pension has risen but the payment has fallen: "If more tax is being deducted, your net payment may reduce even though your pension has increased."
One trigger is your State Pension starting. HMRC's guidance says that if you are working or getting a private pension, "Your tax code will change to collect this", meaning the tax due on the State Pension. Where you have more than one pension, only one provider takes that tax, and each pension can carry its own code. So a civil service pension can be asked to collect it, and the payment then falls although the pension has not. For how the State Pension is taxed, see whether the State Pension is taxable.
The scheme cannot alter the code. You find yours on your payslip, in your HMRC online account or app, or on a letter from HMRC, and you can ask HMRC for emails when it changes. If the code looks wrong, the scheme's FAQ gives HMRC's number as 0300 200 3300. How the tax lands turns on all your income together. An adviser will go through yours without charge once your name and number reach us through the form here.
Has the scheme recalculated my pension?
The classic guide describes one way. If the pensionable earnings figure behind your pension changes, "for example, due to a backdated pay increase", the scheme writes with revised details and your payments change to match. Where a pension was first based on a pay period earlier than the last 12 months of service, a backdated award can mean it is worked out again from a later one. The guide says "It is possible that this will result in an overpayment of pensions increases", and if it applies to you the scheme says it will write to explain and arrange recovery.
A second change comes when some people start their State Pension. The scheme's retirement guide says that if your service includes time before 1 April 1980, your pension is reduced once you start to claim your State Pension, a step called National Insurance Modification. The reduction is "less than £2 a year for each year of your service up to 1980." How the figure is built is in how much civil service pension you get.
Does going back to work for the Civil Service lower the pension?
It can. The scheme calls the reduction abatement and says it may hit classic, classic plus, premium and nuvos pensions when the member keeps working for, or is re-employed by, a Civil Service employer. It applies only when new pay plus pension exceeds earnings before retirement, and alpha pensions are not subject to it.
The scheme also says the abatement can change, for instance if your hours change or you are promoted, so a pension that fell after a change at work may be this. Who is caught is set out in abatement and working again.
Could an overpayment be coming back out, or a pension sharing order?
Two situations in the scheme's own pages end with money being taken back. The first is the backdated pay award above. The second is a pension sharing order made after you retired. The divorce page says that if you are already getting your pension, "there is likely to be an overpayment of your pension, which you will have to pay back." The reason it gives is that the new lower rate is backdated to the effective date of the order, and the payroll provider cannot reduce the pension until it has the paperwork and payments.
If you have a letter about either, read the amount, the period and the date it runs from, and ask the scheme to explain the working. Your rights when a pension has overpaid you in general, including how repayment can be agreed, are in pension overpayment, and how orders work is in what a pension sharing order is.
Why has a survivor's or child's civil service pension gone down?
These figures come from the classic guide, and other sections have their own guides, so check the one for your section. When a classic pensioner dies, the husband, wife or civil partner first gets a short-term pension equal to the member's pension for 91 days, a period that may be extended if dependent children are in their care. The payment then falls to a continuing pension, which the guide says "is usually one half of the pension you received at the time of your death although it may be lower in certain circumstances."
A child's pension is one quarter of the member's pension for each child in the care of the surviving spouse or civil partner, or one third for a child in the care of another person. With more than two eligible children the pensions are reduced to equal shares, and a child's pension stops when the child leaves full-time education or training, or reaches 23, whichever comes first. If a surviving spouse or civil partner remarries, forms a new civil partnership or lives with a new partner, the classic guide says "we will either stop or reduce the pension." More is in civil service pension on death.
Families should know that if a pension is overpaid because the scheme was not told of a death, the guide says the overpayment must be repaid.
How do I query a civil service pension payment?
Have your National Insurance number and pension reference to hand, as the scheme asks for both, and use the Contact Us form on the Civil Service Pension Scheme website. The scheme says that if you do not recognise a deduction it will explain what it relates to, even if it cannot change it. Capita is now the scheme administrator, having taken over from MyCSP, and the scheme's classic guide gives its line as 0300 123 6666, so use current contact details rather than an old MyCSP letter.
Keep recent payslips and any letters from HMRC or the scheme. Tax questions go to HMRC, and pension amount questions go to the scheme. If the answers leave a hole in your monthly budget, an adviser can talk your income through on a free call, which you set going with the form on this page.
More on civil service pension payment changes
Why is my P60 different from my annual pension?
The scheme says a P60 "shows the total pension paid during the tax year" and "does not show your current annual pension", so a pension that changed part-way through the year will not match it.
Why have I not had the full increase yet?
The scheme pays in arrears, so you may not receive the full increase until the following month, depending on your pay date. If your payment fell after an increase, check the tax code first.
What should I do if I am told I have been overpaid?
Read the letter for the amount, the reason and the dates, and ask the scheme to explain the calculation. Whether you can repay in stages is a point to put to the scheme, and the overpayment guide sets out what can be asked.