UK Public Sector Pensions Glossary (A-Z, 2026/27)

UK public sector pensions come with their own vocabulary. CARE, DCU, AA, RSS, MHO, LSDBA, and that’s just one paragraph of an NHSBSA letter. This glossary translates the most common terms into plain English, with the figures correct for the 2026/27 tax year.

It’s a quick reference, not a deep guide. For anything you want to understand properly, follow the cross-links to a full article, or check the named source for live figures.

Last updated 4 May 2026 · Figures correct for the 2026/27 tax year.

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50/50 section

A unique LGPS feature that lets active members halve their main contributions in exchange for halving the pension build-up (1/98 instead of 1/49). Life cover and ill-health protection stay at full strength. Designed as a short-term option for periods of financial pressure. Employers automatically re-enrol all 50/50 members back into the main section every three years at the auto-enrolment date. See: LGPS guide.

A

Accrual rate

The fraction of your pensionable pay you earn as pension entitlement each year. NHS uses 1/54. Civil Service alpha uses 2.32% (≈1/43). Teachers’ Pension Scheme career average uses 1/57. LGPS main section uses 1/49. Different bases (revaluation rules, salary definitions) mean a smaller fraction in one scheme isn’t always less generous than a bigger fraction in another. See: CARE, Revaluation.

Additional Voluntary Contributions

Optional top-up contributions paid alongside your main scheme. In most public sector schemes, AVCs go into a separate defined contribution pot rather than buying additional DB pension. Sometimes called Money Purchase AVCs or MPAVCs.

AFPS

The Armed Forces Pension Scheme. Three schemes are in operation: AFPS 75 for members who joined before 6 April 2005, AFPS 05 for those who joined between 6 April 2005 and 31 March 2015, and AFPS 15 for everyone joining since 1 April 2015 (plus all serving members from 1 April 2022 onwards). The AFPS is non-contributory, service personnel pay 0% in. See: Armed Forces Pension Scheme guide.

alpha

The reformed Civil Service Pension Scheme that replaced classic, classic plus, premium, and nuvos for new accrual from 1 April 2015. CARE-based, with an accrual rate of 2.32% of pensionable earnings each year (roughly 1/43, significantly more generous than the headline NHS 1/54 or Teachers’ 1/57 rates). Normal Pension Age is the higher of 65 or your State Pension Age. For the deep dive, see our Civil Service Pension Scheme guide.

Annual Allowance

The maximum your pension can grow tax-efficiently in a single tax year. The standard allowance is £60,000 for 2026/27. Growth above this is taxed at your marginal income tax rate. For DB schemes, “growth” is your Pension Input Amount. See: Tapered Annual Allowance, Scheme Pays.

Annual Benefit Statement

An annual statement from your scheme showing accrued pension, projected benefits at retirement, and key scheme details. NHS members access theirs via the Total Reward Statement portal; other schemes have their own member portals.

Armed Forces Compensation Scheme

Tariff-based no-fault compensation scheme for service-attributable injury, illness or death from 6 April 2005. Pays alongside the AFPS, the two don’t reduce each other. The older War Pensions Scheme covers service-attributable conditions caused before 6 April 2005. Often abbreviated to AFCS.

Assumed Pensionable Pay

Used by the LGPS to maintain pension build-up during periods of reduced or zero pay caused by authorised sick leave, maternity, paternity, adoption, shared parental, or reserve forces leave. Typically calculated as the average pensionable pay over the 12 weeks (or three months if monthly paid) before the reduction started. Often abbreviated to APP.

Average Weekly Earnings

The whole-economy measure of UK earnings growth published by the Office for National Statistics. Used by AFPS 15 to revalue in-service CARE pension pots, which makes AFPS 15 distinctive, most other public sector CARE schemes use CPI or CPI plus a margin instead. The April 2026 AWE revaluation is 4.8%.

C

Career Average Revalued Earnings

Career Average Revalued Earnings. A defined benefit pension model where you earn a slice of pension based on each year’s pensionable pay separately. Each year’s slice is then revalued (uprated for inflation, plus a margin if the scheme specifies) until you retire. All major reformed UK public sector schemes from 2015 use CARE. Compare: Final salary. See also: Revaluation.

Civil Service legacy schemes

The four pre-2015 Civil Service Pension Scheme variants: classic (joined before 1 October 2002, 1/80 final salary plus a 3x lump sum), classic plus (a hybrid for pre-October 2002 members who upgraded in 2002), premium (joined 1 October 2002 to 29 July 2007, 1/60 final salary), and nuvos (joined 30 July 2007 to 31 March 2015, 2.3% career average). All closed to new accrual on 1 April 2015 when alpha replaced them. See: Civil Service Pension Scheme guide.

Commutation

Exchanging some of your annual pension for a tax-free lump sum at retirement. The standard NHS 2015 Scheme conversion rate is £12 of lump sum for every £1 of annual pension surrendered. Lump sums are tax-free up to the Lump Sum Allowance.

Complex case

A McCloud cohort whose Remediable Service Statement is taking longer to issue because the case involves additional layers of work. Complex cases typically include those with pension tax charges, pension sharing on divorce, medical (ill-health) awards, added pension contributions, and (in the armed forces) Full-Time Reserve Service. Schemes have flagged these as the largest source of current RSS delays.

Consumer Prices Index

The UK’s headline measure of inflation, published monthly by the Office for National Statistics. The September CPI figure sets the following April’s increase to pensions in payment under the Pensions Increase Act, and the revaluation of most public sector pensions in deferment. Active members of CARE schemes generally see CPI plus a margin (e.g. CPI + 1.6% for Teachers’ active CARE). Often abbreviated to CPI.

Contracting out

A historic arrangement where a defined benefit scheme opted its members out of (or “contracted out of”) the State Earnings-Related Pension Scheme (SERPS) and later the State Second Pension. Contracting out for DB schemes ended on 6 April 2016. Affects how some legacy benefits and Guaranteed Minimum Pensions are calculated.

D

Deemed election

A default election applied automatically by the scheme manager if a member in the Immediate Choice cohort does not respond to their Remediable Service Statement within the 12-month decision window. The default is usually whichever option has the higher monetary value, but the exact wording is scheme-specific and worth reading on the statement itself.

Deferred Choice Underpin

The mechanism that delivers the McCloud Remedy. At the point of taking benefits, retirement, transfer, or death in service, you’re offered a choice between the legacy scheme rules and the reformed scheme rules for your service in the remedy period (1 April 2015 to 31 March 2022). You take the better one. See also: Immediate Choice.

Deferred member

A scheme member who has stopped contributing but hasn’t yet drawn benefits. Deferred benefits are typically revalued in line with CPI alone (rather than CPI plus a margin for active members) under the Pensions (Increase) Act 1971. You can still draw the pension when you reach scheme retirement age.

Defined Benefit

A pension scheme that pays a guaranteed income at retirement, calculated by formula based on pay and service. Most UK public sector pensions are DB. The scheme bears the investment and longevity risk; you don’t. Compare: Defined Contribution.

Defined Contribution

A pension scheme that builds an investment pot from contributions. The pot’s value at retirement depends on contributions and investment returns; you bear the risk. Most modern private sector workplace pensions are DC. Compare: Defined Benefit.

Double accrual

The double-rate of pension accrual in PPS 1987. You build pension at 1/60 of final pay for each of years 1-20, then 2/60 for each of years 21-30. The maximum is 40/60, two-thirds of final pay, after 30 years. No other UK public-sector final-salary scheme offers anything like it. The functionally identical mechanic in FPS 1992 is called fast accrual. See: Police Pension Scheme guide.

E

Early Departure Payment

A bridging benefit for armed forces personnel leaving before normal pension age. Separate from your pension, which is preserved to NPA and is paid in full from then. Available to regular service personnel only. AFPS 05 EDP qualifies at 18 years’ service from age 40; AFPS 15 EDP at 20 years’ service from age 40. Often abbreviated to EDP. See: Armed Forces Pension Scheme guide.

Early Retirement Reduction Buy Out (ERRBO)

An option in FPS 2015 to pre-pay extra contributions in exchange for being able to take some or all of your pension below the scheme’s normal pension age of 60 without an actuarial reduction. You agree a target retirement age, pay an additional contribution percentage on top of your normal contribution for the rest of your service, and the buy-out applies at retirement to the years you paid for. Only worth doing if you’re firmly committed to retiring early and have many years to spread the cost. Most members don’t take it. See: Firefighters’ Pension Scheme guide.

Eligible partner

An unmarried partner who qualifies for survivor benefits under modern public sector pension schemes (AFPS 05, AFPS 15, NHS 2015, Civil Service alpha, LGPS and others). The typical test is a substantial and exclusive relationship combined with financial dependency or interdependency. AFPS 75 and other legacy schemes generally don’t recognise eligible partners, only legally married spouses or civil partners.

F

Fast accrual

A pension-accrual feature in FPS 1992. You build pension at 1/60 of pensionable pay for each of years 1-20, then 2/60 for each of years 21-30, capping at 40/60, two-thirds of final pay, after 30 years. The design recognises the physical demands of operational firefighting and the expectation of a 30-year career. The mechanic is functionally identical to PPS 1987’s double accrual; the schemes use different names for the same idea. Distinct from Faster Accrual in the Teachers’ Pension Scheme, which is something else. See: Firefighters’ Pension Scheme guide.

Faster Accrual

A Teachers’ Pension Scheme option that lets active 2015-section members buy a higher accrual rate (1/45, 1/50 or 1/55 instead of the standard 1/57) in exchange for higher contributions, decided each tax year by election. Often paired with a Buy Out election to reduce or remove the actuarial reduction for retiring before State Pension Age. See: Teachers’ Pension Scheme guide.

Fiduciary duty

The legal obligation of those who manage a pension fund (the pensions committee, scheme trustees, and the investment pool from October 2026) to act in the financial interests of the fund’s beneficiaries (members and the employers funding the scheme). For LGPS funds the duty has been progressively clarified by case law, including the 2017 Palestine Solidarity Campaign judgment, which set limits on what political reasons can be cited for divestment or investment decisions. ESG factors are within scope where they are financially material; non-financial political grounds are outside it. See the Councillors and LGPS investment decisions explainer for the practical map.

Final salary

A defined benefit pension model where your pension is based on your salary at, or near, retirement (multiplied by years of service and an accrual rate). Most legacy public sector schemes were final salary. Most reformed schemes from 2015 are CARE instead. NHS 1995 and 2008 Sections are still final salary for service before 1 April 2022.

Fire and Rescue Authority (FRA)

The local statutory body that employs firefighters and runs the firefighters’ pension scheme for its members. There are 44 FRAs in England, 3 in Wales, the Scottish Fire and Rescue Service, and the Northern Ireland Fire and Rescue Service. Each FRA decides which third-party administrator handles its pension records, there’s no single national administrator for the firefighters’ pension scheme, which is unusual in UK public sector pensions. See: Firefighters’ Pension Scheme guide.

FPS 1992

The Firefighters’ Pension Scheme 1992, the original final-salary scheme for whole-time regular firefighters, established by the Firemen’s Pension Scheme Order 1992. Closed to new entrants on 6 April 2006 when FPS 2006 was introduced, and closed to active accrual on 1 April 2022 when everyone moved to FPS 2015. Has fast accrual (40/60 of final pay after 30 years) and a normal pension age of 55 (50 with 25 years’ service). Retained firefighters were excluded, a wrong later corrected by the Matthews remedy. See: Firefighters’ Pension Scheme guide.

FPS 2006

The Firefighters’ Pension Scheme 2006, also known as the New Firefighters’ Pension Scheme (NFPS). A final-salary scheme that accrues at 1/60 of pensionable pay each year up to a maximum of 45 years, with a normal pension age of 60. There’s no automatic lump sum, you can commute pension into a lump sum at retirement on age-related factors. Open to new entrants from 6 April 2006 to 31 March 2015. Closed to active accrual on 1 April 2022. See: Firefighters’ Pension Scheme guide.

FPS 2006 Special

Also known as the “modified scheme”, the retained-firefighters’ settlement of the Matthews case. Sits inside the FPS 2006 framework but uses 1/45 accrual and a normal pension age of 55 to mirror FPS 1992 benefits, recognising that retained firefighters were excluded from FPS 1992 throughout its existence. Eligibility was offered through two options exercises (2014 and 2023). See: Firefighters’ Pension Scheme guide.

FPS 2015

The current Firefighters’ Pension Scheme, career average revalued earnings (CARE), 1/59.7 accrual on pensionable pay each year, with revaluation at Average Weekly Earnings while you’re an active member and at CPI once you leave. Normal pension age is 60. The only scheme open to new entrants since 1 April 2015 and the only scheme accruing benefits for everyone since 1 April 2022. See: Firefighters’ Pension Scheme guide.

Funded scheme

A pension scheme with an actual investment pot, managed across one or more pension funds, holding equities, bonds, property, and other assets. The LGPS is the only major UK public sector scheme that’s funded. Compare: Unfunded scheme.

G

Government Actuary’s Department (GAD)

A non-ministerial UK government department that provides actuarial advice to public-sector pension schemes. GAD sets the commutation factors, early-retirement reduction factors, and other actuarial conversion factors used by every UK public service pension scheme. When a scheme says “factors are set by GAD,” it means the multipliers built into the calculations of your benefits.

H

HMRC

His Majesty’s Revenue and Customs. The UK tax authority. Sets and administers pension tax rules, including the Annual Allowance, Lump Sum Allowance, and tax relief on contributions.

I

Immediate Choice

A variant of the Deferred Choice Underpin for members who already retired during or close to the McCloud remedy period. Instead of choosing at a future retirement, the choice between legacy and reformed scheme benefits is made now (or has already been made for some cohorts). The Armed Forces scheme has extended its Immediate Choice deadline to as late as December 2026 for some members.

Immediate Pension

A unique feature of AFPS 75. Members reaching the IP point can leave the armed forces and start drawing pension and a tax-free lump sum from the day of discharge with no actuarial reduction, regardless of age. Officers reach the IP at 16 years from age 21; other ranks at 22 years from age 18. No other UK public sector scheme has this. Often abbreviated to IP.

Internal Dispute Resolution Procedure

Internal Dispute Resolution Procedure. The formal complaints process every UK pension scheme is required to maintain. The first port of call for formal disputes about your benefits, before escalating to the Pensions Ombudsman.

Investment Strategy Statement (ISS)

A required public document under Regulation 7 of the LGPS Management and Investment of Funds Regulations 2016. Sets out the LGPS administering fund’s investment objectives, its approach to risk and return, its responsible investment policy, and its stewardship priorities. Each administering fund’s pensions committee approves and reviews its own ISS. Published on the administering authority’s website. It is the single most useful document for understanding what a particular LGPS fund actually does with its assets.

L

LGPS

Local Government Pension Scheme. The UK’s largest funded defined benefit scheme, covering local council employees, school support staff, and many others. CARE accrual rate of 1/49 in the main section (1/98 in the optional 50/50 section). Administered through regional pension funds in England and Wales (with separate Scottish and Northern Ireland schemes). See: Local Government Pension Scheme guide.

Lifetime Allowance

A historic UK limit on the total tax-favoured pension benefits you could build up over your lifetime. Abolished from 6 April 2024 by the Finance Act 2024, replaced by the Lump Sum Allowance (LSA) and the Lump Sum and Death Benefit Allowance (LSDBA). Some members hold valid pre-2024 LTA protections that produce higher allowance figures.

Lump Sum Allowance

LSA. The total tax-free cash you can take from all your pensions over your lifetime. Standard figure for 2026/27 is £268,275. Replaced 25% of the old Lifetime Allowance from 6 April 2024. Higher figures may apply if you hold valid pre-2024 LTA protections (for example, Fixed Protection 2016 lifts the LSA to £312,500).

Lump Sum and Death Benefit Allowance

Lump Sum and Death Benefit Allowance. The total tax-free lump sum benefits you can use across all your pensions, taken either in life or paid on death. Standard figure for 2026/27 is £1,073,100. Replaced the broader Lifetime Allowance from 6 April 2024.

M

Matthews remedy

The settlement of Matthews v Kent and Medway Towns Fire Authority (2006), a Part-time Workers Regulations claim brought by retained firefighters who’d been excluded from FPS 1992 because the original scheme was open only to whole-time regular firefighters. The remedy created FPS 2006 Special, also known as the “modified scheme”, and ran two options exercises (2014 and 2023) letting eligible retained firefighters buy back service to 7 April 2000. A separate remedy from McCloud, but commonly running in parallel because many affected firefighters are in scope of both. See: Firefighters’ Pension Scheme guide.

McCloud judgment

The Court of Appeal ruling on 20 December 2018 that transitional protection in the 2015 public service pension reforms unlawfully discriminated against younger members on grounds of age, in breach of the Equality Act 2010. Two linked cases: McCloud (judges) and Sargeant (firefighters). The Supreme Court refused permission to appeal in June 2019. See: our McCloud Remedy explainer.

McCloud Remedy

The fix for the McCloud judgment. Affected members’ service for the remedy period (1 April 2015 to 31 March 2022) has been temporarily rolled back into their legacy scheme, with a Deferred Choice Underpin to come at retirement. Underpinned by the Public Service Pensions and Judicial Offices Act 2022. Full guide: McCloud Remedy explained. See: our McCloud Remedy explainer.

Mental Health Officer status

MHO status. A reserved-rights category within the NHS 1995 Section. Members substantially employed in the treatment of patients with mental disorders, who joined the scheme on or before 1 April 1995, can take pension at age 55 with no actuarial reduction. MHO status is separate from Special Class Status. See: NHS Pension Scheme guide.

Minimum Pension Age

The earliest age at which you can take any pension benefits at all (separate from Normal Pension Age). Currently 55. Rising to 57 from 6 April 2028 under the Finance Act 2022. Members of the firefighters’, police, and armed forces public service schemes are exempt from the increase.

MoneyHelper

The free, impartial pensions and money guidance service run by the Money and Pensions Service (an arm’s-length body of the Department for Work and Pensions). Replaced the Money Advice Service and the Pensions Advisory Service. Covers public and private sector pensions, including McCloud-related guidance.

Money Purchase AVCs

MPAVCs. AVCs that go into a separate defined contribution pot rather than buying extra DB pension. The pot is invested; outcome depends on contributions and returns. Often the AVC option offered by public sector schemes through nominated providers.

MyCSP

The administrator brand that ran day-to-day Civil Service Pension Scheme administration on behalf of the Cabinet Office until 30 November 2025. Capita took over from 1 December 2025 and the member portal was rebuilt from scratch. The MyCSP name is being phased out; the official scheme website is now civilservicepensionscheme.org.uk. See: Civil Service Pension Scheme guide.

N

NHSBSA

NHS Business Services Authority. The arm’s-length body that administers the NHS Pension Scheme in England and Wales (Scotland and Northern Ireland have separate administrators). Handles contributions, statements, retirement applications, and McCloud Remedy delivery. See: NHS Pension Scheme guide.

NILGOSC

The Northern Ireland Local Government Officers’ Superannuation Committee, the single administering authority for the Local Government Pension Scheme in Northern Ireland. Equivalent to the 86 administering authority funds in England and Wales or the 11 in Scotland. NILGOSC also acts as the investment manager for its members’ assets.

Normal Pension Age

NPA. The age at which you can take your scheme benefits without actuarial reduction. Different schemes have different NPAs. NHS 1995 Section: 60 (or 55 with reserved-rights status). NHS 2008 Section: 65. NHS 2015 Scheme: State Pension Age. Civil Service alpha: higher of 65 or State Pension Age. LGPS, Teachers’ career average, and most reformed schemes: State Pension Age.

P

Partnership pension

A defined contribution alternative offered by the Civil Service for those who don’t want to join the main alpha scheme. The employer pays an age-related contribution into a stakeholder pension provided through partner providers. Typically much less generous than alpha but offers more portability for those expecting a shorter Civil Service career.

Pensionable pay

The portion of your earnings on which pension contributions are calculated and benefits are based. Definitions vary by scheme, some include all earnings, some exclude overtime or specific allowances. Your scheme’s rules will set out the precise definition for your contract type.

Pension Input Amount

PIA. The notional value of your pension growth in a single tax year, used to test against the Annual Allowance. For DB schemes, PIA is typically calculated as 16 times the increase in your annual pension (after revaluation), plus any newly added lump sum. Big PIA spikes from promotions or unusual pension events are the main reason high-earning public sector members face AA charges.

Pensions Dashboards Programme (PDP)

The UK government-backed initiative to let pension savers see all their pensions in one place online, including the State Pension. Statutory connection deadline for occupational pension schemes: 31 October 2026. The first consumer-facing service is the MoneyHelper Pensions Dashboard, run by the Money and Pensions Service (MaPS), with a full public launch expected Q4 2026. Around 75% of in-scope pension records are already connected as of spring 2026. See the Pensions Dashboard member guide for what public service scheme members can expect.

Pension sharing order

A court order in divorce proceedings that splits the cash-equivalent value of one party’s pension and transfers a credit to the other party’s chosen scheme. Used routinely in modern UK divorce settlements. Affects all UK public sector pensions; the McCloud remedy has added complications to PSOs made during the 1 April 2015 to 31 March 2022 remedy period.

Pensions Ombudsman

The independent body that handles complaints about pension administration, after a member has exhausted their scheme’s IDRP. Free to use. Decisions are legally binding on schemes.

Phased Retirement

A Teachers’ Pension Scheme option allowing active members aged 55 or over to draw up to 75% of their accrued pension while continuing to teach, often at reduced hours or pay. Doesn’t trigger the Money Purchase Annual Allowance. Distinct from “partial retirement” options in some other schemes, the Teachers’ version is unusually flexible and is the most under-used benefit in the scheme. See: Teachers’ Pension Scheme guide.

PPS 1987

The Police Pension Scheme 1987, the original final-salary scheme for police officers in England and Wales (Scotland has its own equivalent). Closed to new entrants on 5 April 2006 when PPS 2006 was introduced, and closed to active accrual on 1 April 2022 when everyone moved to PPS 2015. Has double accrual, 40/60 of final pay (two-thirds) after 30 years’ service. The most generous of the three police schemes for officers with long service. See: Police Pension Scheme guide.

PPS 2006

The Police Pension Scheme 2006, also called the New Police Pension Scheme (NPPS). A final-salary scheme that accrues at 1/70 of final pay each year up to 35 years, with a normal pension age of 55 and an automatic tax-free lump sum equal to 4× the annual pension. Open to new entrants from 6 April 2006 to 31 March 2015. Closed to active accrual on 1 April 2022. See: Police Pension Scheme guide.

PPS 2015

The current Police Pension Scheme, career average revalued earnings (CARE), 1/55.3 accrual in England and Wales (1/56.1 in Scotland), with revaluation of CPI plus 1.25% in service. Normal pension age 60, significantly lower than the State-Pension-Age-linked NPAs of NHS, Teachers’ and Civil Service schemes, reflecting the physical demands of policing. The only scheme open to new entrants since 1 April 2015 and the only scheme accruing benefits for everyone since 1 April 2022. See: Police Pension Scheme guide.

Public Sector Transfer Club

A reciprocal arrangement between most UK public sector pension schemes (including NHS, Teachers, Civil Service, Armed Forces, Police, Fire, LGPS, and Judicial) giving favourable transfer terms to members moving between schemes within set time limits, typically within 12 months of joining the new scheme. Less generous than the older “Inner Club” arrangements but more generous than transfers based purely on cash equivalent values.

Public service pension adjustment

HMRC’s bespoke statutory route for correcting historic Annual Allowance and Lifetime Allowance positions caused by the McCloud rollback, used through the GOV.UK Calculate your public service pension adjustment digital service. Reopens otherwise closed Self Assessment years for this single purpose. Used by the member directly (not by agents); powers of attorney, deputies, and legal personal representatives have separate access. Output is a refund, a new or revised charge, or a confirmation that no change is needed.

Public Service Pensions Act 2013

The primary legislation that authorised the wholesale 2015 reform of UK public-sector pensions, replacing or reforming nearly every legacy public-service scheme (NHS 1995/2008, Teachers’ 1988, Civil Service classic/premium/nuvos, AFPS 75/05, PPS 1987/2006, FPS 1992/2006, LGPS 2008) with new career-average schemes from 1 April 2015. Sets out cost-control mechanics, normal pension ages linked to State Pension Age (police and firefighters got NPA 60 instead), and the framework that McCloud and Sargeant later challenged on age-discrimination grounds. The follow-up Act that implemented the McCloud remedy is the Public Service Pensions and Judicial Offices Act 2022.

Public Service Pensions and Judicial Offices Act 2022

The Public Service Pensions and Judicial Offices Act 2022. Primary UK legislation underpinning the McCloud Remedy across the public service pension schemes. Royal Assent: 10 March 2022. Also reforms the judicial pension arrangements and raises the judicial mandatory retirement age. Schemes implement the Act through their own secondary regulations.

R

Reckonable pay

A specific definition of pensionable pay used in some legacy NHS schemes (notably the 2008 Section), typically calculated as the average of the best three consecutive years’ pay in the last ten, revalued. Used to dampen the effect of late-career pay spikes on final salary calculations. See: NHS Pension Scheme guide.

Remediable Pension Savings Statement

RPSS. The Annual-Allowance-focused statement issued by your scheme alongside or after your Remediable Service Statement, setting out the revised pension input amounts for each remedy-period tax year on the basis that the rollback applied. The RPSS is the document used to recompute Annual Allowance charges through HMRC’s Calculate your public service pension adjustment service. Distinct from the RSS, which sets up the benefit choice. Members whose remedy-period benefits crystallised against the old Lifetime Allowance also use the RPSS figures to revisit historic LTA tests.

Remedial Service Statement

RSS. The statement issued by your scheme under the McCloud Remedy, setting out your service in the remedy period, the contribution position, and an indicative comparison of legacy versus reformed benefits. RSS rollout has been heavily delayed across all major schemes; NHSBSA paused publishing a delivery timetable in 2025 pending an independent review.

Reserved-rights status

A protection that lets certain pre-existing categories of NHS 1995 Section members take pension at 55 instead of 60. Two distinct types: Special Class (nurses, midwives, health visitors, physiotherapists; cutoff 6 March 1995) and Mental Health Officer (cutoff 1 April 1995). Continuous qualifying service is required.

Revaluation

The annual uprating of accrued CARE pension entitlement. Active member revaluation is typically CPI plus a margin (NHS 2015 uses CPI + 1.5%). Deferred member revaluation is typically CPI alone, under the Pensions (Increase) Act 1971. Revaluation is what makes CARE meaningful, without it, your earliest years’ accrual would be eroded by inflation.

Rollback

The McCloud Remedy mechanism that re-treats every affected member’s service for the remedy period (1 April 2015 to 31 March 2022) as if it had been built up under the legacy scheme by default. Contributions are recalculated on the legacy basis, and the resulting benefit entitlements feed into the Deferred Choice Underpin or Immediate Choice.

Rule of 85

A historic LGPS protection that lets members retire from age 60 without actuarial reduction where their age plus their length of LGPS service totals 85 or more. Removed prospectively from 1 October 2006 in England and Wales, but pre-October 2006 service still benefits where members were “covered” before that date. Different protection rules apply in Scotland. See: LGPS guide.

S

Sargeant judgment

Sargeant and others v London Fire and Emergency Planning Authority and others (2018), the Employment Tribunal case brought by firefighters challenging the 2015 transitional protections in FPS 2015 as age discrimination. Heard alongside McCloud v Ministry of Justice (the judges’ equivalent), and the two cases are usually referred to together as “McCloud/Sargeant” or just “McCloud” for shorthand. The combined outcome is the McCloud Remedy applied across all unprotected public service schemes. See: McCloud Remedy guide.

Scheme Pays

A facility that lets you ask your scheme to pay your Annual Allowance tax charge in exchange for a permanent reduction in your eventual pension. Administratively easier than paying out of your own pocket. Financially, the actuarial reduction can be significant, Scheme Pays isn’t always the cheaper option overall.

Special Class Status

A reserved-rights category within the NHS 1995 Section. Nurses, midwives, health visitors, and physiotherapists who were active members of the scheme on or before 6 March 1995 can take pension at age 55 (with no actuarial reduction). Continuous qualifying service is required, with a five-year break rule. Special Class Status is distinct from Mental Health Officer status. See: NHS Pension Scheme guide.

State Pension Age

SPA. The age at which the UK State Pension becomes payable. Currently 66. Rising to 67 between 2026 and 2028, and to 68 between 2044 and 2046 (subject to review). Used as the Normal Pension Age for most reformed CARE schemes from 2015.

T

Tapered Annual Allowance

A reduction to the Annual Allowance for high earners. For 2026/27, where your threshold income exceeds £200,000 AND your adjusted income exceeds £260,000, the AA reduces by £1 for every £2 of adjusted income above £260,000, down to a floor of £10,000. Mostly affects senior consultants, judges, senior officers, and high-earning civil servants.

Teachers’ Pensions

The administrator brand for the Teachers’ Pension Scheme in England and Wales, currently delivered by Capita on behalf of the Department for Education. Statements, retirement claims and member communications all flow through Teachers’ Pensions. Capita’s contract is transferring to Tata Consultancy Services (TCS) in late 2026. Equivalent to NHSBSA for NHS members.

Total Reward Statement

TRS. The annual benefit statement portal for NHS Pension Scheme members in England and Wales. Shows accrued pension, projected benefits, and reward information. Worth checking once a year for accuracy of service dates and contributions. See: NHS Pension Scheme guide.

Transfer value

The cash equivalent of your accrued pension benefits if you were to transfer them out of the scheme. For most unfunded public sector schemes (NHS, Teachers’, Civil Service, Armed Forces, Police, Firefighters’), transfers out to defined contribution arrangements have been closed since 2015. For the LGPS, transfers are possible, but the FCA requires regulated advice for transfer values above £30,000.

U

Unfunded scheme

A pension scheme that doesn’t hold an investment pot. Benefits are paid from current contributions and the public purse on a “pay as you go” basis. NHS, Teachers’, Civil Service, Armed Forces, Police, and Firefighters’ schemes are all unfunded. Compare: Funded scheme.

V

Veterans UK

The public-facing brand for veteran services within Defence Business Services (DBS), part of the Ministry of Defence. Handles armed forces pension queries, AFCS claims, War Pensions Scheme claims and bereavement support. The Joint Personnel Administration Centre (JPAC) at Kentigern House in Glasgow is the main contact point for AFPS pensions queries: 0800 085 3600.

W

Whole-time equivalent (WTE)

The pay you’d be earning if you worked full-time hours in the same role. Public-sector pension contribution tiers historically used WTE pay (also called “full-time-equivalent” or FTE pay) so that part-time and retained workers paid the same percentage rate as a colleague doing the same job full-time, even though their actual pay was lower. From 1 April 2026, both the Police Pension Scheme 2015 in England and Wales and the Firefighters’ Pension Scheme 2015 in England switched from WTE-based contribution assessment to actual pensionable earnings, a meaningful reduction for part-time and retained members and a meaningful increase for some senior roles.

Withholding notice

The operational mechanism set out in HMRC’s 11 May 2026 technical note for the new inheritance tax rules on unused pension funds from 6 April 2027. When a member dies, the pension scheme administrator can issue a withholding notice on an unused defined contribution pot (including an AVC pot), holding back up to 50% of the pot value until the personal representatives (executor) of the estate confirm either that no IHT is due or that any IHT on the pot has been paid. The mechanism is HMRC’s solution to the fact that schemes do not, at the date of death, know whether IHT will be due on the pot, because that depends on the estate as a whole. See the Pension IHT 2027 public sector guide for the full mechanics.