The NHS Pension Scheme is a pension scheme for people who work for the
English NHS
The National Health Service (NHS) is the publicly funded healthcare system in England, and one of the four National Health Service systems in the United Kingdom. It is the second largest single-payer healthcare system in the world after the ...
and
NHS Wales
NHS Wales ( cy, GIG (Gwasanaeth Iechyd Gwladol) Cymru) is the publicly-funded healthcare system in Wales, and one of the four systems which make up the National Health Service in the United Kingdom.
NHS Wales was formed as part of the public ...
. It is administered by the
NHS Business Services Authority
The NHS Business Services Authority (NHSBSA) is an executive non-departmental public body of the Department of Health and Social Care which provides a number of support services to the National Health Service in England and Wales. It was create ...
, a
special health authority of the
Department of Health
A health department or health ministry is a part of government which focuses on issues related to the general health of the citizenry. Subnational entities, such as states, counties and cities, often also operate a health department of their ow ...
of the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
. The NHS Pension Scheme was created in 1948.
The NHS Pension Scheme is made up of the 1995/2008 Scheme and the 2015 Scheme. From 1 April 2015 all new joiners, without previous scheme membership, join the 2015 Scheme automatically. Members prior to 1 April 2015 retain rights to remain in the 1995 or 2008 section of the existing scheme for an age-dependent limited time, after which they must transition to the 2015 scheme unless they reach the normal retirement age of their old scheme first.
The NHS Pension Scheme has 1.7 million members actively contributing, 713,000 deferred members and 1 million pensioners receiving benefits.
The benefits and conditions vary according to the type of worker and the dates of their service. From 2008 the "Normal Retirement Age" changed from 60 years to 65 years while the cost of membership was increased. From 2015 the scheme retirement age was aligned with the State retirement age (65 - 68). The benefits are index-linked and guaranteed. They are based on final salary and years of membership of the scheme (members who joined before 1 April 2015) or career average salary (members who joined after 1 April 2015). There is an employer charge of 0.08% for administration costs, in addition to employer contributions at a rate of 20.6% of salary from April 2019.
As of 2016, the tiered employee contribution rates start at a 5% rate, increasing in 7 steps to 14.5% on income above £111,337.
Members can increase their contributions if they wish to get larger benefits (within certain limits).
See also
*
Scottish Public Pensions Agency, which administers the pension scheme for
NHS Scotland
NHS Scotland, sometimes styled NHSScotland, is the publicly funded healthcare system in Scotland and one of the four systems that make up the National Health Service in the United Kingdom. It operates 14 territorial NHS boards across Scotland, ...
*
Agenda for Change
Agenda for Change (AfC) is the current National Health Service (NHS) grading and pay system for NHS staff, with the exception of doctors, dentists, apprentices and some senior managers. It covers more than 1 million people and harmonises their pay ...
, the grading and pay system for NHS staff, excepting doctors, dentists, apprentices and some senior managers
References
{{reflist
External links
Official websiteNHS Employers website
National Health Service (England)
NHS Wales
Public pension funds in the United Kingdom