What would it mean for you?
If the proposed changes to pensions go ahead, you would switch from HCAPS to the Civil Service Pension Scheme (and start building up Civil Service Pension Scheme benefits) from 1 April 2024.
What would happen to your HCAPS benefits
You will keep building up benefits with HCAPS until 31 March 2024.
After 1 April 2024, if the proposed changes go ahead, you will become a deferred member of HCAPS. You will stop building up benefits with HCAPS, but the benefits you already built up before that date will remain and keep growing.
If you are on the Career Average Revalued Earning (CARE) HCAPS tier
While you remain at RSH:
HCAPS benefits revalued in line with inflation
If you leave RSH before retiring:
HCAPS benefits revalued annually with a cap of 2.5%
If you are on the Final Salary (changing to CARE Enhanced) HCAPS tier
While you remain at RSH:
HCAPS benefits stay linked to your final pensionable salary
If you leave RSH before retiring:
HCAPS benefits increased in line with inflation annually with a cap of 5%
If you are not sure which HCAPS tier you are currently on, check your member booklet or email HR@rsh.gov.uk
How your contributions would change
If you earn £56k or less, then the proposed changes would mean your pension contributions would be slightly lower.
If you earn above £56k then your contributions would be slightly higher.
You can use our pension calculator to estimate the effect on your final pension.
Your Civil Service Pension Scheme options
The Civil Service Pension Scheme offers two options for new members. You would have the chance to pick which of these options you want to enrol in. If you did not make a choice, you would be enrolled in the alpha scheme by default.
Default option: alpha scheme
Alpha is a defined benefit pension scheme like HCAPS, where the amount you are paid in retirement is based on:
- how many years you were enrolled in the scheme
- your salary when you left or retired
Alternative option: partnership scheme
This is a defined contribution pension scheme, where the amount you are paid in retirement depends on how much you and your employer put into the pot and how much that investment has grown.
Civil Service Pension Scheme members also have the option of improving their final pension by:
- buying added defined benefit pension
- buying an earlier pension age
- making extra payments to increase retirement savings
If the proposed changes do not go ahead
Right now, the switch to the Civil Service Pension Scheme is a proposal, not a final decision. We want to know what you think about the proposal, and will use what you tell us to inform our final decision.
If we decide not to switch to the Civil Service Pension Scheme, you will stay a member of HCAPS.
If you are currently enrolled in the HCAPS Final Salary tier, you will be switched to the HCAPS CARE Enhanced tier from 1 April 2024.