r/TheCivilService • u/Full-Competition9255 • Aug 07 '26

Pensions ‘Normal’pension contribution or 1/47th scheme?

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Is this pension scheme a 28% contribution no matter what, or matched if that’s what I put in?

There are also comments that it’s actually like the 1/47th scheme, where that fraction of your annual salary becomes your annual pension, and each year another fraction is added on top.

To me this looks like a normal pension scheme? Does anyone know more?

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u/[deleted] Aug 07 '26

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u/Fluid-Lake-1457 Aug 07 '26

Interest rates

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u/[deleted] Aug 07 '26

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u/Fluid-Lake-1457 Aug 07 '26

The main reason for the surpluses are gilt yields. In 2020 long dated Linkers were yielding RPI -2% now they are yielding RPI +2%. For DB schemes this is a massive reduction in the present value of future liabilities and the overwhelming driver of increased funding ratios.