A. Yes, if you are an existing member you will still have the option to purchase added years as long as the start date of the contract is on or before 31 March 2009. However, there is one important rule. You must have at least made an expression of interest on or before 31 March 2008.

Q. Who do I contact to express an interest to buy added years?

A. You can contact your employer by telephone, letter or email enquiry (click here) to request an added years quotation/comparison, or contact the Pension Division.

Q. I am currently contributing 6%, but from April my contributions rate will increase to 7.5%. Will I be able to purchase up to the additional 9% because I will have exceeded the maximum employee contribution limit?

A. The 15% limit was removed in 2006 it is now possible to pay up to 100% of earnings into a pension scheme. Added years can still therefore be purchased up to a maximum of 9% regardless of the new contribution rate.

Q. If I opt to transfer to the New NHS Pension Scheme at the time of the choice exercise from July 2009 will my added years contract continue?

A. No. This is because the added years facility is being replaced by a pension purchase arrangement. You will be able to continue with the contract if you remain in the amended 01/04/08 NHS Pension Scheme. If you choose to move to the New Pension Scheme a credit for any added years purchased to the date of ‘choice’ will be calculated.

Additional Pension

Q. What is the additional purchase pension facility?

A. From 1 April 2008 current contributing members will be able to buy additional annual pension that will provide a maximum of £5000.00 extra pension per year at retirement.

Q. Can I purchase the additional pension in instalments or buy lump sum?

A. You will have the option to buy in instalments or by a one off lump sum payment. If you opt to buy in instalments you will be required to pay a fixed amount each month and commit to the purchase over whole years, up to a maximum of 20 years, or to normal retirement age if earlier.

Q. What is the minimum amount of pension that I can buy?

A. The minimum commitment will be for extra contributions that will provide an additional pension of £250.00 a year at retirement.

Q. When will I be able to receive a quotation on how much it will cost to buy additional pension?

A. At the end of March the Pension Division or current NHS/GPP employer will be able to provide you with this information. There will also be a pension calculator for members which will be available on the website at the end of March

Q. Do I only have the option to start a contract to purchase additional pension on my birthday of each year?

A. No, contracts or lump sum payments can be taken out at any time as long as you are in pensionable employment.

Q. Is there any limit on what I can contribute to my pension?

A. From 1 April 2008 you will be able to contribute 100% of your pensionable pay to increase your pension pot, either through additional annual pension purchase above) and or by contributing to the money purchase additional voluntary contributions (MPAVC) and stakeholder pension arrangements we already have in place with Standard Life and The Prudential. Links to the MPAVC websites are available from the links

Q. I am already purchasing added years to age 60. Can I also purchase additional pension?

A. Yes, existing contracts will be honoured and you will be able to purchase additional pension as well up to 100% of your pensionable pay.

Q. Will it be more beneficial for me to purchase additional pension or added years?

A. If you are in doubt which arrangement would be best for you, you should seek independent advice from a reputable independent financial advisor.

Q. Will I get full tax relief on the additional contributions?

A. Yes, any additional contributions you pay will attract tax relief.

Contribution rates

Q. Why has the new contribution rates been introduced from 1 April 2008?

A. This is to help pay for the improved benefits and future scheme costs associated with the updated and the New NHS Pension Scheme.

Q. Does my employer continue to contribute 14%?

A. Yes, employers will continue to contribute this amount which is about two thirds of the cost of an individual’s pension.

Q. Will my new contributions rate be based on my earnings at the end of each financial year?

A. In 2008/2009 your contribution rate will be based on pensionable pay in 2007/2008. DH are looking at the best way to assess contribution rates for the future and will advise accordingly in the coming months.

Q. I work part-time will the contribution rate be based on my actual earnings?

A. No, it will be worked out from your full time equivalent pensionable pay.

Q. Is there a facility for me to work out how much will be deducted from my pay from April?

A. Yes there is a contributions calculator on the NHS website. This will allow you to work out the amount that will be deducted in pension contributions from April 2008.

Q. I have been on the contributions calculator and I do not agree with the amount of contributions that my employer is deducting?

A. Please contact your payroll department.

Q. Is there any limit on what I can contribute to my pension?

A. From 1 April 2008 you will be able to contribute 100% of your pensionable pay to increase your pension pot, either through additional annual pension purchase (as described above) and or by contributing to the money purchase additional voluntary contributions (MPAVC) and stakeholder pension arrangements we already have in place with Standard Life and The Prudential. Links to the MPAVC websites are available from the links page.

Death in service nominations

Q. Is there a limit on the amount of people that I can nominate?

A. If you are contributing to the scheme on or after 1 April 2008 you can nominate one or more people [multiple nominations] or one organisation to receive equal or unequal portions of the death benefit lump sum.

Q. Do I need to contact you to make my multiple nomination?

A. The form to make a multiple nomination will be available to download from the member’s library section of the NHS Pensions Website or you can contact your NHS employer.

Q. What if I want to change my nominations?

A. You can cancel or make a new nomination at any time.

Q. If I cease NHS employment or after retirement am I able to make a nomination?

A. Yes any person who has been in pensionable employment on or after 1 April 2008 can make a new nomination.

Deferred members and pensioners

Q. I left NHS employment before 31 March 2008 and don’t intend to return back to NHS employment. Will the changes affect me?

A. No. Members who leave the NHS on or before 31 March 2008 and defer their pension benefits, will remain subject to the current NHS Pension Scheme rules and benefits.

Q. Will my normal retirement age still be 60?

A. If you are a deferred member in the pre 1 April 2008 or amended 01/04/08 NHS Pension Scheme then your normal retirement age will remain as 60.

Q. How do I claim my deferred pension?

A. Contact the Pension Division approximately 3 months prior to your 60th birthday (65 if member of New NHS Pension Scheme) by telephone, letter or email to request the deferred retirement application form.

Q. If I leave NHS employment after the 1 April 2008 will I have the option to commute part of my pension at retirement?

A. Yes up to 25% of the capital value.

Q I am currently a deferred member but in the future may consider returning back to NHS employment. How will the changes affect me?

A. If you refer to NHS Pension Scheme changes: rules and benefits comparison on the website, the fact sheet will provide information about how the changes will affect deferred members re-joining the NHS.

Q. I am already in receipt of my pension benefits; will the changes to the NHS Pension Scheme from April affect me?

A. If your pension started on or before 1 April 2008 the changes will not affect anything about your pension or benefits for dependants.

Earnings limit

Q. As a high earner will my pensionable salary still be capped?

A. Some high earning members (e.g. earning well over £100,000+) currently have their pensionable salary capped. From 1 April 2008, ‘salary capping’ will be removed.

However, when a ‘capped’ member retires their pension will be calculated as though capping were still in place for pensionable service to 31 March 2008 (but not to pensionable service from 1 April 2008).

Q. Will my benefits up to 31 March 2008 be index linked?

A. Yes, a virtual cap will apply to all benefits pre 1 April 2008. At retirement pension benefits will be calculated using pay and virtual cap at retirement.

Q. If I opt to transfer to the New NHS Pension Scheme from July 2009 will my service prior to 1 April 2008 still be subject to the earnings cap?

A. This is still being discussed and will form part of the ‘choice’ exercise.

Ill Health

Q. I understand that new ‘Ill Health’ arrangements will be in place on 1 April 2008. Can you tell me about this?

A. With effect from 1 April 2008 a two-tiered arrangement for Ill Health retirement benefits will be introduced.

Q. What are the tiered arrangement criteria?

A. Tier 1 - The applicant will be assessed as being unable to do his or her own job. The member is suffering from physical or mental infirmity that makes him or her permanently incapable of efficiently discharging the duties of that employment.

Tier 2 – The applicant will be assessed as being unable to do any regular employment. The member is suffering from physical or mental infirmity that makes him or her permanently incapable of engaging in regular employment.

Q. What affect does the tiered arrangement have on benefits?

A. If the applicant is assessed under tier 1, they will receive benefits based on accrued service with no actuarial reduction. If the member is assessed under tier 2, in addition to tier 1 they will receive an enhancement of 2/3 prospective service to normal retirement age.

Membership limits

Q. I have mental health officer status and my service is in excess of 50 years. Will my service still be restricted to 40 years at age 55 in the amended 01/04/08 NHS Pension Scheme?

A. There is no change to service limits for MHO’s and members of the Special Classes.

Q. What is the maximum service I can have?

A. Overall membership is still 45 years.

Pension Commutation

Q. What is pension commutation?

A. Under the amended NHS Pension Scheme members will have the option to give up some of their annual pension for an additional tax-free lump sum, up to a maximum amount permitted under the HM Revenue and Customs (HMRC) rules.

Q. Who is eligible for pension commutation?

A. Members who are contributing to the scheme on or after 1 April 2008.

Q. Is there a limit on the amount of pension that I can give up for an additional tax-free lump sum?

A. Yes, up to 25% of the capital value of your pension

Q. How much does it cost?

A. Your pension would be converted to a lump sum at the rate of £12 additional lump sum for every £1 of pension given up.

Q. Do I have to commute part of my pension?

A. No you don’t have to commute anything. You can take the usual pension and lump sum, which is normally three times the pension amount.

Q Is there a facility for me to calculate my benefits if I opt to commute part of my pension.

A. Yes on the NHS website. However before using the calculator you will need to know your estimated pension and lump sum amount at retirement.

You will be able to enter your expected pension and lump sum and look at different scenarios, from giving up £1 pension to the maximum permitted. Employers with access to our estimate tools can also provide this for you.

Q. Who do I contact to request an estimate of my pension benefits?

A. Members are entitled by law to request up to one estimate of pension and dependents benefits per year. Your current NHS /GPP employer have the facility to provide you with this information.

If you are employed by a direction body or ceased NHS employment contact the Pension Division by telephone, letter or email to request an estimate of benefits.

Pensionable pay

Q. If I opt to move to the New NHS Pension Scheme at the choice exercise will my pension be based on the best of the last three years earnings?

A. No. Your final pension will be based on the average of the best three consecutive year’s pay in the last ten years.

Re-employment in the NHS after retirement

Q.I am considering returning to NHS employment after retirement. Can I rejoin the scheme?

A. If you retire before the 1 April 2008 and return back to work in the NHS any further employments will not be pensionable unless you retired on ill health grounds and return back to work before age 50.

If you leave NHS pensionable employment after 1 April 2008 and retire before the ‘choice’ exercise you will be eligible for pensionable re-employment but you must wait two years after retirement before you can re-join the New NHS Pension Scheme.

If you retire after 1 July 2009 then your position is determined by which scheme you retired from. If you had taken the option to transfer to the New NHS Pension Scheme then any future employments will be pensionable.

Q. If I retire after 1 April 2008 do I still have to take a 24 hour break before returning back to employment and work less than 16 hours per week in the first calendar month to avoid my pension being suspended?

A. Yes the same rules will apply as the current NHS Pension Scheme. If you opt to transfer to the New NHS Pension Scheme at the time of the choice exercise from 2009, the 24-hour break will still apply but your pension will not be suspended if you work more than 16 hours per week in the first calendar month.

Q. What is abatement?

A. In the new NHS pension scheme and for members of the existing pension scheme who were active on or after 01 April 2008, abatement will apply. However the effect of abatement is limited such that the member’s pension is not reduced to below the pension that would have been payable had the member taken voluntary early retirement with actuarially reduced benefits.

Abatement is not applied when a member commences pensionable re-employment after previously retiring with benefits under the “new style” redundancy arrangements. The rationale behind this exception is that i) there are no increases to pensionable service through the new style redundancy arrangements and ii) the member will have funded the unreduced element of their pension using some or all of their redundancy compensation lump sum.

Q. Will I be subject to abatement in the amended 01/04/08 or New NHS Pension Scheme if I return back to work before normal retirement age?

A. Yes. If you retire after 1 April 2008 abatement will apply - this does not apply to members who retire on Voluntary Early Retirement or Early Payment of Preserved Benefits.

Retirement Benefits

Q. I am an existing member of the scheme and do not intend transferring to the New NHS Pension Scheme at the choice exercise. What benefits will I receive and when can I retire?

A. Your normal pension age will be the age of 60. You will be entitled to a retirement pension based on 1/80th of your pensionable pay at retirement for each and any part year of scheme membership. A tax-free lump that is normally equal to 3 times your pension subject to the lifetime allowance. If you retire after 1 April 2008 you will have the option to commute part of your pension to an additional tax-free lump sum. Please refer to pension commutation for more information about this facility.

Q. I am going to transfer to the New NHS Pension Scheme at the choice exercise. What benefits will I receive when I retire?

A. Your normal pension age will be the age of 65. You will be entitled to a retirement pension based on 1/60th of your pensionable at retirement for each and any part year of scheme membership. You will have the option to give up part of your pension for a tax-free lump sum of up to 25% of the pension value.

Q. Will my pension be taxed?

A. Your pension is treated as an earned income and will be subject to tax.

Step Down (Voluntary pension protection)

Q. What is step down?

A. If you decide to downgrade to a less demanding role and the pay is reduced, you can apply for voluntary pension protection (step down).

Q. Will I benefit at retirement for protecting my pension?

A. Yes, this is because the pension you have already earned before the step-down will be frozen on the higher pensionable pay. You will then start a second pension based on your stepped down pay. The frozen pension will also be kept up to date with cost of living increases. When you retire both pensions will be added together.

Q. Do I have to be over a certain age to apply for this?

A. Yes you must be age 50 or over.

Q Is there a limit on the amount of times I can voluntarily protect my pension.

A. Yes – once.

Survivor/Partner pension

Q. Can you tell me more about ‘Partner’ benefits and the determining criteria?

A. Partner benefits are known as survivor pensions. Currently we pay survivor pensions to legal spouses and registered civil partners. From 1 April 2008 survivor pensions will be extended to include nominated qualifying partners of members

of the NHS Pension Scheme (amended 01/04/2008) making contributions on or after

1 April 2008 and the New NHS Pension Scheme.

A nominated qualifying partner will be validated at the date a nomination is made and at the date the survivor pension is claimed. The Pension Division must establish that you have an exclusive and long-term committed relationship of at least two years, are co-habiting, and, are financially dependent or inter dependent. Click here to download the nomination form.

Q. Who do I contact to request a nomination form to nominate my partner to receive the survivor’s pension in the event of my death?

A. The nomination form is available to download from the member library section of the NHS Pensions website or you can request a copy from your employer.

Q. What will my partner be entitled to in the event of my death?

A. The survivors pension for nominated partners will be half your pension based on membership from 6 April 1988.

Q. I have been a member of the scheme prior to 6 April 1988 so why is it based on my membership from 6 April 1988 only?

A. In the mid 1980’s as part of pension and Social Security reform the Government decided that Occupational Pension Scheme which contracted out of the State Scheme, should be required to provide widowers pensions for service after April 1988, payable on the same basis as widows pensions. The new legislation did not require retrospective cover.

The new survivor pensions will mirror the benefits provided for widower and civil partner pensions however there will be an option to buy any membership prior to 1988.

Q. I receive a survivor pension, what if I remarry or cohabit?

A. If a person currently in receipt of a survivor pension remarries or cohabits the pension is stopped. Under the scheme changes, where payment of a survivor pension occurs in respect of a member who has contributed to either NHS Pension Scheme on or after 1 April 2008 this survivor pension will not stop if the survivor remarries or cohabits.

NHS Pension Scheme in England and Wales

Added Years

Additional Pension

Contribution rates

Death in service nominations

Deferred members and pensioners

Earnings limit

Ill Health

Membership limits

Pension Commutation

Pensionable pay

Re-employment in the NHS after retirement

Retirement Benefits

Step Down (Voluntary pension protection)

Survivor/Partner pension

Added Years

Q. Can I still buy added years?

Q. Who do I contact to express an interest to buy added years?

Q. I am currently contributing 6%, but from April my contributions rate will increase to 7.5%. Will I be able to purchase up to the additional 9% because I will have exceeded the maximum employee contribution limit?

Q. If I opt to transfer to the New NHS Pension Scheme at the time of the choice exercise from July 2009 will my added years contract continue?

Additional Pension

Q. What is the additional purchase pension facility?

Q. Can I purchase the additional pension in instalments or buy lump sum?

Q. What is the minimum amount of pension that I can buy?

Q. When will I be able to receive a quotation on how much it will cost to buy additional pension?

Q. Do I only have the option to start a contract to purchase additional pension on my birthday of each year?

Q. Is there any limit on what I can contribute to my pension?

Q. I am already purchasing added years to age 60. Can I also purchase additional pension?

Q. Will it be more beneficial for me to purchase additional pension or added years?

Q. Will I get full tax relief on the additional contributions?

Contribution rates

Q. Why has the new contribution rates been introduced from 1 April 2008?

Q. Does my employer continue to contribute 14%?

Q. Will my new contributions rate be based on my earnings at the end of each financial year?

Q. I work part-time will the contribution rate be based on my actual earnings?

Q. Is there a facility for me to work out how much will be deducted from my pay from April?

Q. I have been on the contributions calculator and I do not agree with the amount of contributions that my employer is deducting?

Q. Is there any limit on what I can contribute to my pension?

Death in service nominations

Q. Is there a limit on the amount of people that I can nominate?

Q. Do I need to contact you to make my multiple nomination?

Q. What if I want to change my nominations?

Q. If I cease NHS employment or after retirement am I able to make a nomination?

Deferred members and pensioners

Q. I left NHS employment before 31 March 2008 and don’t intend to return back to NHS employment. Will the changes affect me?

Q. Will my normal retirement age still be 60?

Q. How do I claim my deferred pension?

Q. If I leave NHS employment after the 1 April 2008 will I have the option to commute part of my pension at retirement?

Q I am currently a deferred member but in the future may consider returning back to NHS employment. How will the changes affect me?

Q. I am already in receipt of my pension benefits; will the changes to the NHS Pension Scheme from April affect me?

Earnings limit

Q. As a high earner will my pensionable salary still be capped?

Q. Will my benefits up to 31 March 2008 be index linked?

Q. If I opt to transfer to the New NHS Pension Scheme from July 2009 will my service prior to 1 April 2008 still be subject to the earnings cap?

Ill Health

Q. I understand that new ‘Ill Health’ arrangements will be in place on 1 April 2008. Can you tell me about this?

Q. What are the tiered arrangement criteria?

Q. What affect does the tiered arrangement have on benefits?

Membership limits

Q. I have mental health officer status and my service is in excess of 50 years. Will my service still be restricted to 40 years at age 55 in the amended 01/04/08 NHS Pension Scheme?

Q. What is the maximum service I can have?

Pension Commutation

Q. What is pension commutation?

Q. Who is eligible for pension commutation?

Q. Is there a limit on the amount of pension that I can give up for an additional tax-free lump sum?

Q. How much does it cost?

Q. Do I have to commute part of my pension?

Q Is there a facility for me to calculate my benefits if I opt to commute part of my pension.

Q. Who do I contact to request an estimate of my pension benefits?

Pensionable pay

Q. If I opt to move to the New NHS Pension Scheme at the choice exercise will my pension be based on the best of the last three years earnings?

Re-employment in the NHS after retirement

Q.I am considering returning to NHS employment after retirement. Can I rejoin the scheme?

Q. If I retire after 1 April 2008 do I still have to take a 24 hour break before returning back to employment and work less than 16 hours per week in the first calendar month to avoid my pension being suspended?

Q. What is abatement?

Q. Will I be subject to abatement in the amended 01/04/08 or New NHS Pension Scheme if I return back to work before normal retirement age?

Retirement Benefits

Q. I am an existing member of the scheme and do not intend transferring to the New NHS Pension Scheme at the choice exercise. What benefits will I receive and when can I retire?

Q. I am going to transfer to the New NHS Pension Scheme at the choice exercise. What benefits will I receive when I retire?

Q. Will my pension be taxed?