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.

Public Sector Pension Comparison 2026

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)

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