Most NHS Employees are entitled to join this excellent Pension Scheme which offers a proportion of pay at retirement dependant on length of service.
From 01/04/08 there are 2 versions of the NHS Pension Scheme in operation and previous membership will determine which scheme you will join.
1) Staff with membership prior to 31/03/08, with a break in membership of less than 5 years, will join the original scheme.
2) Staff with no previous membership prior to 01/04/08, or a break in membership of 5 or more years, will join the new scheme.
What does it provide?
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A retirement pension and/or a Pension and a Tax Free Lump Sum for each year and part year of membership.
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Life Assurance of 2 years pay whilst a member of the Scheme.
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Pension and Allowances for a Partner and Dependant Children.
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Benefits if you have to retire from work due to permanent Ill Health
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Benefits if you are made Redundant on or after age 50 (55 for members with no previous membership at 01/06/06).
Pensions are fully index linked to the Retail Price Index. Benefits are guaranteed, based on your pay and membership at retirement. From age 60 members with at least 2 years membership prior to 01/04/06 may choose to take a reduced payment of pension benefits from age 50 (55 for those with at least 2 years membership where there is no previous membership prior to 01/04/06).
There are no administration costs associated with the Scheme. Pension Benefits can be transferred into or out of the Scheme, although if you change NHS Employer membership of the scheme will continue. There are also facilities to increase your benefits by paying additional contributions.
What does it Cost?
The contributions rate is staged from 5.00% for lower earners and which can increase through further bandings (6.50%, 7.50% or 8.50%) for higher earners. The employer currently contributes 14.00% of an employees pensionable pay for all.
Pension contributions attract Income Tax relief and most members pay a reduced rate of National Insurance Contributions.
Benefits of the NHS Scheme are valuable. Actuaries have assessed their value as being around 20% of overall pay.
Who can join the Scheme?
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Most NHS Employee aged between 16 and 75. Excluded from membership are Members who have previously taken payment of their NHS Pension Scheme and returns to reemployment in the NHS, members who have achieved a maximum of 45 years membership and General Dental Practise Staff.
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NHS Medical, Dental and Ophthalmic Practitioners, including Trainees, some Locums and Assistants.
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WEF 01/09/97 all General Medical Practise Staff were allowed to join the Scheme.
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Some Scheme members who leave the NHS to work for an approved organisations outside the NHS e.g. Hospices and which are known as Direction Employers.
Further Information
If you would like to know more about the NHS Pension Scheme, visit the NHS Pensions Website at www.nhsbsa.nhs.uk
