Annual review of the Civil Service DC pension schemes
GAD's 2025 review of the Civil Service DC pension schemes’ performance reports sound governance and appropriate investment options for members.
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The Government Actuary’s Department (GAD) performs an annual review of Civil Service defined contribution (DC) pension schemes to ensure members receive good value and service.
Civil Service DC pension schemes
A DC scheme is a pension where contributions are allocated to members’ individual accounts. Benefits on retirement reflect the contributions paid, investment returns and provider expenses.
The Civil Service operates Partnership, Concord and Additional Voluntary Contribution (AVC) DC schemes. They currently use Legal & General’s (L&G) MasterTrust as their pension provider. There are also legacy arrangements managed by Scottish Widows, Standard Life and Utmost. The schemes have more than 25,000 members in aggregate.
Our annual review
Our support to the Cabinet Office includes an annual review of factors which affect members’ benefit outcomes and membership experience:
- the default fund investment strategies for each DC scheme arrangement
- fund performance compared to a range of benchmarks
- benefit administration and member services
- providers’ governance processes
We draw on information including the Trustee Chair’s Statement and aggregated member data, as well as independent research and peer group benchmarking. We maintain regular contact with DC providers and the wider industry to stay informed of latest developments.
2025 review findings
The Cabinet Office is responsible for appointing and overseeing the master trust arrangement.
Our 2025 review concluded there is sound governance, administration and reporting. We noted the recent launch of Shariah-compliant investment options and options that incorporate environmental, social and governance factors, which members can self-select. We recommended areas of focus for future performance monitoring.
GAD’s wider DC pensions work
Our support on DC pensions extends to employers and scheme fiduciaries across the public sector. We also support policy makers with actuarial analysis and advice, helping to ensure DC pension provision is secure and supports members as they plan for and move into retirement.