FPCs impact:
- members of the 1995 Section who retire with entitlement to Officer benefits
- members of the 1995 Section who transfer out of the NHS Pension Scheme
If the member receives an increase in their pensionable pay that exceeds the allowable amount in any of the final 3 years before their last day of service, the employing authority (EA) who awarded the excess pay are liable for a FPC charge.
The allowable amount is calculated by increasing the previous years pensionable pay by Consumer Prices Index (CPI) plus 7%.
We'll identify when there's been a pensionable pay increase in excess of the allowable amount, calculate any charges due from the EA and collect payment of the charge.
If there's a charge, an invoice will be sent to the employer after the member's award has been processed.
If you've received a FPC charge and have a query about the calculation, email fpc@nhsbsa.nhs.uk.
FPC only applies to pay rises awarded after 1 April 2014.
Pay increase dates are not recorded on a member's record. The information will be manually requested from the employer if an excess pay increase is suspected.
FPC does not apply to death benefits.
Salary sacrafice is not excluded from the charges.
Read more information about FPC on our website.
Multiple EAs
If there's 2 or more EAs, the charge will be made to the authority that increased the pensionable pay only. These are classed as unconnected employments.
If there's multiple employments under the same EA code and there's no break or a break of less than 365 days between pensionable employments, these will be classed as connected employments. The charge will apply to all the pensionable employments.