nhs pensions

[Hoolahup]

I was browsing my 'pay history' at work when I noted something. I was full time for 10 years (joined scheme year 3), then part time. My contributions till around oct 2023 were 9.5% but went down to 6.7%. I'm close to nhs retirement age, around 3 years away.

The reduced contribution means my pension will be reduced - is this correct?

I called the pay office. They said that the 9.5 was on full time equivalent and the 6.7 on actual earnings.
Can they do this?

I know I can increase my percentage of contributions by contacting nhs pension agency. I tried the calculator which asks for pensionable pay. What's the pensionable pay? (My full time salary would be £42000 but working 0.6 of full time hours).

Hope someone can help.

Your contribution percentage does not impact your pension. It is purely based on your salary. (Those who earn more contribute more)

In the current scheme you accrue 1/54 of your pensionable pay per year toward your pension irrespective of which contribution tier you fall into.

Can you log into ESR to see your rewards statement ?

You've misunderstood how the pension works, and missed the letter about recalculating contributions.

Yes they can do it (and informed.everyone at the time they were doing so).

No, it doesn't affect what you will get when you claim.the pension.

This change benefits you, so don't worry about it. But you need to do some reading up.on the pension to understand how it works and how your choices affect it.

I know I can increase my percentage of contributions by contacting nhs pension agency.

You can't. With the NHS pension you can be in - at the standard, set contributions union rate for your pay; or.you can be out. You can't choose a bit more.or a bit less.

You can buy extra amounts pension, but there are various ways to do this and all are slightly separate from the basic contributions in one way or another.

Your pensionable pay is what you actually earn.

Reckonable pay is whole time equivalent for your grade.

(Broadly - things like antisocial hours payments or salary sacrifice artangements may vary these slightly).

You don't say what sections you're in (it will be 2015 and either 1995 or 2008). You can find the scheme.guides for all of them here: www.nhsbsa.nhs.uk/member-hub

set contributions union rate

Ignore 'union' in this part of my earlier.post - spellchecker playing silly buggers. The unions are nothing to do with it.

Thanks for replies everyone. I'm nhs scotland. Started off in 1995 scheme and then automatically moved to 2015. I don't think I got a letter saying there was this change. Asked a manager at another department from where I work and she was surprised when I told her this so thought I'd write here.

1995 can be increased by doing more antisocial hours in last 3 years before taking it (normally 60)

There is a fantastic nhs pension group on Facebook who answer direct questions.

1995 can be increased by doing more antisocial hours in last 3 years before taking it

Only has to be one of the last 3 years.

Thanks for the correction @NoBinturongsHereMate

Would you mind me asking you a question about my 1995 pension please?

@Hoolahup there was a change to how employee and employer contribution rates are worked out.

This based on actual earnings in a pay period. As you are paid less than the 9.5% threshold your % is lower.

There is a link to pension because the 2015 scheme is career average and is based on your actual earnings.

I suggest you look at McCloud information https://www.nhsbsa.nhs.uk/public-service-pensions-remedy-mccloud

You will need to make a decision when you take your pension. Try to understand what the options are so you make the best decision for you.

Fire away.

Can't guarantee an answer, but I'll do my best.

Thankyou @NoBinturongsHereMate

I started work for NHS in 2001 and have the 1995 pension mainly worked part time during this time with small children. Full time from approx 2012 band 4
I now also have 2015 pension. I worked full time band 4 role plus a separate 6 hour evening band 3 contract.

I have now left my band 4 NHS full time role to move to local council but still have the 6 hour evening NHS contract - band 3

My concern is... Will my 1995 pension be worked out on my current 6 hour NHS contract salary if I carry on this role until I take 1995 pension at 60?

I guess with salary increases over the next 10 years band 3 could be on par with current band 4 wage.
But if I want it based on band 4 final salary wage how long would I have to return to NHS for before I am 60?

You are correct that, as things stand and you work for 10 years at band 3, the band 3 salary will be used for the 1995 pension - it's based on the best year of the last 3 year's work when you take the pension.

There are some circumstances in which you can protect the higher salary for pension purposes - I'm not sure exactly what they are, and I think there may be a time limit on applying for protection. I recommend seaching the NHSBSA site for this info rather than calling them to ask the question. A lot of the phone staff are very poorly trained and often give wrong answers.

If you can't protect the band 4 salary, you'd need to work 1 of the 3 years before you draw the pension back at the higher band if you wanted to regain it. (Note that a 'year' is counted back from the day you take the pension - not a calendar year or financial year.)

If you are out of the NHS pension entirely for 5 years or more, the pension becomes deferred. In that case they use the 3 years before you left the pension.for the calculation. Any work you do if you rejoin later will have no effect on the pension - you start a brand new pension not linked to any earlier ones.

Note that your 'return' job to get the band 4 salary back doesn't need to be full time. It's the band that counts, not the hours.

Thankyou, I didn't know about protecting it so will look into that.

I wonder if I just stopped paying into my NHS pension on my 6 hour contract would make it deffered? I probably will go back full time to nhs at some point though.

Thanks for the reminder that it's doesn't need to be band 4 full time to count.