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HMRC internal manual

PAYE Manual

PAYE operation: pensioners: public service, national boards and forces pensions

The following pensions are covered by the pensions increase legislation. Details of the increased percentages are given each year in the Annual Coding Business Guidance Note.

The remainder of this subject is presented as follows

Public Service

  • Administration of Justice
  • Civil Service including Northern Ireland Civil Service and Diplomatic, Colonial and Overseas Services
  • Fire Service
  • Local Government Service
  • National Health Service
  • Police Service
  • Teachers

National Boards

  • Airways Pension Scheme (1st Scheme)
  • New Airways Pension Scheme (2nd Scheme)
  • UK Atomic Energy Authority
  • British Rail
  • British Transport Docks Board
  • British Waterways (1990) Pension Fund
  • Gas Consumers Council Scheme
  • London Transport
  • National Freight Corporation
  • National Rivers Authority Pension Fund
  • Post Office Corporation (excluding British Telecom)
  • Scottish Transport Group
  • Water Companies Association

Forces (including Royal Ulster Constabulary)

  • Retired pay (for service in commissioned or warrant ranks)
  • Service pensions (for other ranks)
  • Pensions to widows of retired servicemen

Pensions for former employees of the Electricity Council and Area Boards (now Electricity Supply Pensions Ltd) are also increased in line with the pensions increase legislation.

Pensions for former employees of Area Gas Boards are now paid through one of the two main British Gas Schemes. Pension increases under these schemes are not within the pensions increase legislation.

Action to take

Where the primary source is not the pension office and the Public Service, National Board or Forces Pension is small, treat these pensions in the same way as small occupation pensions. Further guidance can be found at PAYE76155 and PAYE76156.

Further information on Exempt Armed forces pensions can be found at EIM74302.

Further information on Exempt Public Service pensions can be found at EIM74310.