Which public sector pension scheme has the best accrual rate?

Teachers' Pension (TPS) has the best accrual rate at 1/57th (1.75%) per year. Civil Service alpha is 1/43.1 (2.32%) — but note that a higher fraction means you earn more per year. NHS 2023 scheme accrues at 1/54th (1.85%).

Which public sector scheme has the lowest employee contributions?

Armed Forces (AFPS 15) is non-contributory — 0% employee contribution. NHS 2023 contributions range from 5.1% to 13.5%. TPS ranges from 7.4% to 11.7%. Civil Service alpha ranges from 4.6% to 8.05%.

Are public sector pensions index-linked?

Yes. All four main public sector schemes pay CPI-linked pensions. Active CARE credits are typically revalued by CPI+1% or CPI+1.6% during service, providing strong real-terms protection.

Can I compare the value of public sector pensions?

The standard valuation multiplier for DB pensions is 20:1. If you receive £10,000/yr pension, its transfer value is approximately £200,000. NHS and TPS pensions are widely regarded as the most valuable non-contributory perk in public sector employment.

What is the Normal Pension Age for public sector schemes?

NHS 2023, Civil Service alpha, TPS (CARE): all equal State Pension Age (currently 66, rising to 67). AFPS 15: also State Pension Age, though Early Departure Payment available from age 40 after 20 years.

Which scheme has the best death in service benefit?

Armed Forces (3× salary + 62.5% survivor pension) and NHS (2× reckonable pay + 37.5% survivor pension) are both very generous. TPS and Civil Service also pay 3× salary death gratuity plus survivor pensions.

Can I switch between public sector pension schemes if I change jobs?

Yes — you can transfer accrued pension rights between qualifying public sector schemes, or defer each pension separately. Each scheme pays a pension based on your service with that employer.

Are public sector pensions at risk from government changes?

Major reforms have occurred (2015, 2023). Current schemes are governed by legislation. The Supreme Court McCloud ruling forced retrospective protection. While future changes are possible, accrued rights are strongly protected.

How do public sector pensions compare to private sector?

Public sector DB schemes provide CPI-linked income for life starting from state pension age. Private sector DC pensions depend on contributions and investment returns. A typical public sector pension is worth significantly more than an equivalent private sector DC pot.

What is the employer contribution to public sector pensions?

NHS: 23.7%; TPS: 28.6%; Civil Service alpha: 28.97%; AFPS 15 (MOD): effectively 100% as non-contributory. These employer contributions are funded by taxpayers and represent substantial additional pay.

Do public sector pensions have a Pension Commencement Lump Sum?

All four schemes allow commutation of pension for a tax-free lump sum at a rate of £12 lump sum per £1 annual pension surrendered. Up to 25% of pension value (max £268,275 LSA) can be taken tax-free.

What is the NHS 2023 pension scheme?

The NHS 2023 scheme replaced the 2015 Remedy (McCloud fix) for NHS workers. It is a CARE scheme accruing 1/54th of pensionable pay per year, with CPI+1.5% revaluation and NPA equal to State Pension Age.

Sarah Chen · Personal Finance Analyst (CFA, MSc Finance) · Reviewed Apr 2026

Public Sector Pension Comparison

NHS vs Teachers vs Civil Service vs Armed Forces — side-by-side

Scheme Comparison at a Glance

Feature	NHS 2023	Teachers' (TPS)	Civil Service (alpha)	Armed Forces (AFPS 15)
Scheme Type	CARE	CARE	CARE	CARE
Accrual Rate	1/54 (1.85%)	1/57 (1.75%)	1/43.1 (2.32%)	1/47 (2.13%)
Revaluation (in-service)	CPI+1.5%	CPI+1.6%	CPI	CPI+1%
Normal Pension Age	SPA (66–67)	65 / SPA	SPA (66–67)	SPA (66–67)
Employee Contribution	5.1%–13.5%	7.4%–11.7%	4.6%–8.05%	0% (non-contributory)
Employer Contribution	23.7%	28.6%	28.97%	100% (MOD funded)
Death in Service Lump Sum	2× salary	3× salary	3× salary	3× salary
Survivor Pension	37.5% of member pension	37.5%	37.5%	62.5%
Early Exit Option	Actuarial reduction from 55	Actuarial reduction from 55	Actuarial reduction from 55	EDP after 20yrs (age 40–55)

Pension Estimate Calculator

Enter your details to estimate pension for any scheme:

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Frequently Asked Questions

Which scheme is most generous overall?

Are public sector pensions sustainable?

Understanding Public Sector Pensions in the UK

The four major UK public sector pension schemes -- NHS Pension Scheme (2023), Teachers' Pension Scheme (TPS), Civil Service alpha scheme, and Armed Forces Pension Scheme (AFPS 15) -- are all Career Average Revalued Earnings (CARE) defined benefit schemes. This means your pension is based on your actual earnings each year, revalued in line with inflation, rather than your final salary at retirement. These schemes were reformed following the Hutton Review and the Public Service Pensions Act 2013, with the latest changes taking effect in April 2022 (McCloud remedy) and April 2023.

Public sector pensions are unfunded, meaning they are paid directly from current government revenue rather than an invested fund. The total estimated liability exceeds £2.2 trillion. Despite this, accrued pension rights are protected by legislation, and the Supreme Court's McCloud ruling in 2018 reinforced protections against discriminatory changes. All four schemes provide CPI-linked pensions in payment, a significant advantage over private sector defined contribution pensions where the retiree bears all investment and inflation risk.

Employee contribution rates vary significantly between schemes. The Armed Forces scheme is uniquely non-contributory (0% employee contributions), funded entirely by the Ministry of Defence. NHS contributions are tiered from 5.1% to 13.5% of pensionable pay. Teachers pay between 7.4% and 11.7%, while Civil Service alpha members contribute between 4.6% and 8.05%. Employer contributions are substantial: 23.7% for NHS, 28.6% for TPS, and 28.97% for Civil Service, representing a significant additional benefit on top of salary.

How to Use This Comparison Calculator

Enter your annual salary and expected years of service in the input fields above. Select the pension scheme you belong to or are considering joining. The calculator applies the correct accrual rate (1/54th for NHS, 1/57th for TPS, 1/43.1 for Civil Service alpha, or 1/47th for Armed Forces) to estimate your annual pension at retirement. It also calculates the maximum tax-free lump sum you could take by commuting part of your pension at the standard rate of £12 for every £1 of annual pension surrendered, subject to the Lump Sum Allowance of £268,275.

The approximate transfer value uses the standard 20:1 multiplier commonly applied to defined benefit pensions, giving you a rough idea of what your pension entitlement would be worth as a lump sum. The total employee contributions figure shows what you will have paid in over your career. Bear in mind that this is a simplified estimate that does not account for salary progression, CPI revaluation of CARE credits during your career, or any legacy final salary benefits you may have from pre-2015 service.

Key Changes for 2025/26 Tax Year

The NHS Pension Scheme completed its transition to the 2023 scheme following the McCloud remedy, which gave eligible members a choice between legacy and reformed benefits for the period April 2015 to March 2022. The Annual Allowance for pension growth remains at £60,000, with the tapered allowance affecting those with adjusted income above £260,000. The Lifetime Allowance was abolished from April 2024 and replaced with the Lump Sum Allowance (£268,275) and Lump Sum and Death Benefit Allowance (£1,073,100). State Pension Age for all four reformed schemes is currently 66, rising to 67 between 2026 and 2028.