How the different pension schemes compare
We are proposing switching you from the Homes and Community Agency Pension Scheme (HCAPS) to the Civil Service Pension Scheme.
HCAPS is modelled on the Local Government Pension Scheme. It was adopted by the Homes and Communities Agency (now Homes England) and became the Regulator of Social Housing’s primary pension scheme when we became standalone in 2018.
The Civil Service Pension Scheme, on the other hand, is a pension specifically designed for the civil service and organisations that support central government. It is funded by contributions from both members and employers.
Side by side comparison
The Civil Service Pension Scheme offers two options for new members: alpha and partnership. We have used the alpha option for this comparison because:
- it is the default option
- it is a defined benefit pension scheme, similar to HCAPS
|
HCAPS |
||
Civil Service Pension Scheme: alpha |
CARE tier |
Final Salary (changing to CARE Enhanced) tier |
|
Type |
Defined benefit |
Defined benefit |
|
| Accrual rate* | 2.32% |
1.25% |
1.81% |
Employee contribution rates 2023/24 |
<£32k: 4.60% £32-£56k: 5.45% £56-£150k: 7.35% >£150k: 8.05% |
6% of pensionable pay |
|
Normal pension age |
State pension age or 65, whichever is higher |
State pension age |
|
Commutation rate* |
12:1 |
Subject to change (set by trustees, advised by scheme actuary) |
|
Death and ill health benefit arrangements |
See your member booklet |
||
Governing framework |
Statutory public sector scheme |
Private pension scheme framework |
|
Decision-makers |
Government Advisory board |
Trustees Pensions Regulator |
|
| Funding requirements | No requirement for assets to be held to fund future benefits The government pays benefits directly to members |
Trustees must hold assets to fund all future benefits Benefits paid directly out of scheme assets |
|
Protection in case employer ceases to exist |
Guaranteed by the government |
Private sector defined benefit schemes are protected by the Pension Protection Fund |
|
Accrual rate: how much your pension pot increases by each year, shown as a percentage or a fraction of your pensionable salary.
Commutation rate: used to convert annual pension into a lump sum. Currently, the law allows you to take a tax-free lump sum of up to 25% of the value of your benefits, capped at £268,275.
