The NHS Pension Scheme is a defined benefit pension scheme split into 2 schemes:
- 1995 and 2008 Sections of the NHS Pension Scheme
- 2015 Scheme
The 1995 and 2008 Sections are now closed. All active membership will be in the 2015 Scheme.
When you take your pension benefits, your NHS pension is guaranteed to be paid a specific amount depending on your:
- length of service
Your NHS pension is not dependent on investment returns.
It is compliant with sharia law.
On our website you can view:
The 2015 Scheme is a Career Average Revalued Earnings (CARE) Scheme.
A CARE scheme uses your pensionable earnings throughout your career to calculate your pension.
Every year the amount of pension you earn is calculated based on your actual pensionable pay in that Scheme year. The amount is increased through revaluation every year until you retire or leave the Scheme.
The accrual rate is 1/54th. The NHS pension earned in a scheme year is revalued on 1 April of the following year. This revaluation is decided by HM Treasury. This is currently CPI + 1.5% each year.
Your final pension amount is the total of all these revalued pots from each year of your membership.
If you leave the Scheme before being entitled to claim your retirement benefits, annual revaluation stops. This is replaced at retirement by Pension Increase. Pension Increase is used to maintain the value of your pension against rises in the cost of living.
If you re-join the Scheme with a break of 5 years or less, your previous period of contributions will link with your current period. The pension you had before the break will be revalued for each scheme year during the break.
If you re-join the Scheme with a break of more than 5 years, your previous period of contributions will not link. Your benefits for the earlier period will be calculated separately. Only your new period of benefits will be revalued. At retirement, the earlier period of benefits will receive Pension Increase from the date the break began.
1995 and 2008 Scheme
This Scheme was split into 2 sections:
- 1995 Section
- 2008 Section
Both are final salary schemes. They use your years of membership and pensionable earnings at, or close to retirement, to calculate your pension unless you have a disqualifying break.
The 1995 section uses your pensionable earnings from the best of the 3 years leading up to your retirement.
The 2008 section uses your pensionable earnings average from the best 3 consecutive years within the 10 years leading up to your retirement.