 |
|
Frequently Asked Questions
What does the NHS Scheme provide?
What if I only work part-time?
What if my final year’s pensionable pay is reduced?
Will I get a State Pension as well?
What if I am retiring prematurely?
What if I want to retire early?
What if I become too ill to work?
How do I apply for ill health retirement?
Can I transfer my benefits in or out of the NHS Scheme?
What if I decide to leave the Scheme or the NHS?
Could I rejoin the NHS scheme?
Questions and Answers from Employer Seminars 2010
Q. What does the NHS Scheme provide?
A. an index linked pension (based on 1/80th of your pensionable pay at retirement for each year of service in the scheme) and a lump sum (equal to 3 times pension) when you retire, or for those who join after 1 April 2008 a pension based on 1/60th of pensionable pay but with no lump sum (you may however commute part of your pension to a lump sum).
PLUS:
- voluntary early retirement.
- ill-health retirement benefits.
- life insurance cover.
- family benefits (widow(er)s’ and dependants’ benefits.
All pension benefits are based on pensionable pay and length of service in the scheme. They are guaranteed by law to be there when you become entitled to them.
Pensions are increased each year to maintain their value. With tax relief on contributions and lower National Insurance contributions, the net cost of all these benefits for most members is around 3.5% of their pay.
The scheme has the full support of the trades unions and professional bodies representing those who work in the NHS.
back to top
Q. What does it cost?
A. The contribution for members is up to 8.5% of pay (dependant on salary levels). But the real cost is effectively around 3.5% for most members because:
- you get tax relief on your contributions.
- you pay a lower rate of National Insurance contributions because you are contracted out of the State Earnings Related Pension Scheme.
Q. When can I retire?
A. For most scheme members, the minimum age at which pension will normally be paid is 60. In certain circumstances, you can get your pension on retirement before that age. For those who joined from 1 April 2008 the normal pension age is 65.
back to top
Q. What if I only work part-time?
A. Members who work part-time have their accrued service and final year’s pensionable pay converted to the equivalent full-time amounts.
back to top
Q. What if my final year’s pensionable pay is reduced?
A. For most members their final year’s pensionable pay is usually the highest of their working life. However we do look at pensionable pay in previous years and, if appropriate, take that into account.
back to top
Q. Will I get a State Pension as well?
A. You will normally qualify for a flat-rate retirement pension.
back to top
Q. What if I am retiring prematurely?
A. If you are retired prematurely your benefits will start to be paid immediately if you are aged 50 or over and you have at least 5 years’ service in the scheme.
back to top
Q. What if I want to retire early?
A. You can choose to take voluntary early retirement from age 50 and receive a reduced pension. You will get your benefits on the understanding that you are retiring and not simply taking a break in employment. Your benefits will be reduced to cover the extra cost of being paid for a longer time.
back to top
Q. What if I become too ill to work?
A. You may be able to retire early because of ill-health. An application to retire early because of ill-health should be made to your employer. The application must be supported by medical evidence and you may have to have a medical examination by SPPA’s medical advisers.
back to top
Q. How do I apply for ill health retirement?
A. If you are still working, you should apply on Form AW8 which you can get from your employer or download. Form AW8(pdf 320Kb)
If you are no longer working, you should write to SPPA with appropriate medical evidence of your permanent inability to do regular work.
Q. Can I transfer my benefits out of the NHS scheme?
A. If you leave the NHS scheme, you may be able to transfer your benefits out of the scheme to:
- another occupational pension scheme;
- a personal pension scheme;
- an insurance company to buy an annuity contract; or
- a self employed pension arrangement
Q. What if I decide to leave the scheme or the NHS?
A. If you are considering leaving the scheme but staying in your job, please make sure you fully understand what you are giving up. Before making your final decision, speak to your employer and seek independent financial advice.
- If you leave your job or decide to leave the scheme:
- If you have been in the scheme for less than 2 years you can have a refund of the contributions you have paid provided you are under age 60 when you leave. Tax and National Insurance contributions will be deducted from the refund before it is paid to you. Refunds are not available to anyone who joins the scheme after age 60.
- If you have been in the scheme for 2 or more years, you can leave your benefits with the scheme. These are called preserved benefits. Their value is maintained and they are normally paid to you at age 60.
- You may be able to transfer the benefits you have earned in the scheme to another pension arrangement.
- If you have reached retirement age and decide to leave the scheme but carry on working, you will not be able to claim your retirement benefits until your employment ends.
- If you move to employment elsewhere in the NHS, you can stay in the scheme and your benefits will continue to build up.
Q. Could I rejoin the NHS scheme?
A. If you are working in the NHS, you may rejoin the scheme at any time unless you are:
- on sick leave
- absent from duty for any other reason; or
- receiving scheme benefits (unless you retired on ill-health grounds and would be rejoining the scheme before age 50).
Q. Where can I find out more?
A.
- More information is contained in the booklet on this website.
- Your employer will be able to help you.
- You can contact the Agency directly.
Q. Questions and Answers from Employer Seminars 2010
Future Data Interfaces
Q. Will the future web interface allow employers to calculate pensions directly?
A. We do not have a timescale for the introduction of a web interface. However, it is not currently envisaged that this facility will be practicable online. A thorough record and members' document check has to be undertaken prior to a pension event calculation.
Q. Will the new file specification interface directly to the Scottish Standard Payroll System (SSPS) e-payroll project?
A. We are working with the SSPS representatives on the NHS Technical Working Group to introduce the new file specification. There are presently no proposals to link directly to the e-payroll system, however this could be a future development.
Injury Benefits
Q. How quickly is an application expected to be submitted after an accident at work?
A. Although there is no set timescale for applications to be submittedit would be sensible for applications to be completed and submitted with all the required information as soon as it becomes apparent that any sick absence will cause a loss of earnings.
Q. Once permanent injury benefits are awarded are they ever reviewed?
A. Permanent injury benefit awards/assessments can only be reviewed following a request by the applicant. Applicant's can also apply for a reassessment of their caseif they feel that their work related condition has deterirated. There is no provision for the employers to request a review. However, the amount in payment to the applicant and therefore the amount recharged to the employer could change due to DWP benefits or other relevant incomes stopping or starting with the allowance itself remaining the same.
Q. Is the 85% allowance based on the basic pay before reduced pay commences or total pay?
A. The 85% allowance is based on the average pensionable pay to the employee during the 365 days prior to reduced pay taking effect. As in the superannuation scheme, if the previous 2 years prior to this are more beneficial this amount will be used in our calculations.
Q. If someone has been injured at work and is redeployed on the same wage banding and hours are they eligible for permanent injury benefits?
A. An applicant must be assessed as having suffered a more than 10% permanent loss of earning ability to be accepted for the payment of permanent injury benefits. In this case the employee remained on the same income therefore the assessment would have to be less than 10%. The applicant would not be eligible for permanent benfits as they have not lost any earnings.
Q. Should NHS Payroll departments be sending in reduced pay figures on a monthly basis once they know an application has been submitted?
A. Although this is helpful to us it could be that you are carrying out work that is not required. No-one is guaranteed to be accepted and so it may be that we do not require any pay figures. If you enter an e-mail address on the application when initially completing pay details then we can contact you when an application has been accepted and then reduced pay details will need to be submitted on a monthly basis.
Q. When is the re-charging of injury benefits going to take place and how far back will this be backdated?
A. The SPPA are currently in the process of calculating and issuing recharge notices to health boards. These charges will be backdated as far back as charges remain outstanding.
Q. A nurse has been permanently disfigured follwing an assault by a patient, however she did not suffer any loss of earnings - is she eligible to apply for injury benefits?
A. As the nurse has not suffered any loss of earnings she would not be entitled to any payment from the injury benefit scheme. However, the Criminal Injuries Compensation Authority based in Glasgow is a compensation scheme for this kind of accident/injury.
Q. If a person has been re-employed on the same contract with same salary but is earning less due to the inability to work shifts because of a work related condition are they entitled to apply for permanent injury benefits?
A. A person is eligible to apply for permanent injury benefits if they have suffered a financial loss of earnings. However, it should be kept in mind that benefits are only payable when their earning ability is reduced by more than 10%.
Q. Once an application has been accepted for injury benefits and the employers disagree with this decision can they contest it?
A. The SPPA act as administrators for the NHS injury benefit scheme and its regulations. Once a decision has been made regarding the acceptance of a case there is no provision for the employer to contest it. However, there is an appeal process for the applicant if their case is rejected.
Q. Are staff who have been transferred through a TUPE transfer to work in GP Practice eligible for Injury Benefits?
A. As GP Practice staff are ineligible for NHS Injury Benefits and their pay etc would have been transferred to the Practice they cannot apply for Injury Benfits. However, they should check with the Practice whether they have a similar provision.
Q. Is it the employers responsibility to notify their employees of the Injury Benefits scheme?
A. Yes. Employers are expected to let employees know of our scheme if they have suffered a loss of earnings following a work related injury/condition.
Q. If an employee has applied for Ill Health retirement, should the employers link this with Permanent Injury Benefits?
A. If an employee has suffered a work related illness/injury and their employment is terminated then the employer should notify them of their right to apply for permanent injury benefits. However, we may have previously had an application for temporary injury benefits and when their employment is terminated due to the injury/work related condition we will talk them through the process of applying for permanent injury benefits.
Q. In one situation an employee had fallen out of the back of an ambulance and suffered an injury at work. However, this person did not adhere to health and safety procedures - would the employee still be eligible for NHS Injury Benefits?
A. This is quite a common, and difficult situation we come across. What we have to ascertain is whether or not the applicant had been culpably negligent in their actions (had they deliberately and for no good reason ignored Health and Safety procedures). If so then they may not be entitled to NHS Injury Benefits.
Q. How long are temporary injury benefits paid for?
A. Once an application has been approved for temporary injury benefits these can continue to be paid for as long as the employee remains on sick leave. Once they have returned to work or had their employment terminated then payment will stop. Although we have had temporary awards in the past that have been paid for more than 5 years, we will write to NHS employers every year after an award has been made to remind them that it is temporary award.
Q. Is there a reason that there are fewer applications now than there has been in the past?
A. Following the introduction of agenda for change, if a work related injury has caused an absence from work the injured person is entitled to full pay for a longer period. This means that fewer NHS employees suffer a loss of earnings.
Q. How does the Injury Benefit team ascertain whether an absence is caused by a pre-existing condition or an accident/incident has caused an aggravation of such a condition?
A. In cases such as these we request all relevant medical evidence from the employee and the employer. We ask for a 5 year absence record to find out if the employee has been absent due to a similar condition or injury. We also ask the employee to disclose any pre-existing conditions and have to trust that they do so. In cases like this we are more likely to seek advice from our qualified medical advisers. A case can still be accepted despite a pre-existing condition if a further injury which is attributable to work is accepted as being the main cause of absence.
Q. Is there one rate of payment for the Permanent Injury Benefits or are there varying rates?
A. A permanent injury benefit is based on two factors: the length of NHS service the employee has had (this is actual service and does not relate to how long they've been in the superannuation scheme) and: the banding given when the permanent reduction of earning ability has been assessed by our medical advisers. Please see our guidance booklet for further information on the percentages used for permanent injury benefits.
http://www.sppa.gov.uk/nhs/documents/SPPANHSInjuryBenefitsSchemeGuide_000.pdf
Q. How many times can an employee apply for injury benefits for the same injury?
A. If an employee has been accepted for temporary injury benefits and then returns to work if they commence sick absence again due to the same injury/condition they can re-apply for benefits. If it has only been a short amount of time since they last received benefits (for example, they only manage a return to work for 3 weeks before starting another absence) we will request medical evidence confirming that the absence is due to the original work related condition applied for rather than asking for the entire application form to be completed again. However, if the employee managed to sustain a much longer return to work then we will ask for a new application form to be completed and more substantial medical evidence to be submitted. If an employee does become absent again and has previously received temporary injury benefits from us then it would be best to contact us before action is taken.
Q. HR Departments currently find it quite difficult to answer the negligence question as they were not present at the time of the accident/injury - what is the best way to go about this?
A. As mentioned in previous questions and answers, culpable negligence or misconduct can be hard to determine. If the HR department are unsure how to answer yes/no to the negligence question, or an ongoing investigation prevents the question from being answered at the time, then it would be helpful to us if a covering letter is submitted to explain why the question could not be answered. If HR have any concerns about there being culpable negligence or misconduct then they should provide all relevant information.
Practitioners
Q. Are Appraisers classified as Officer or Assistant Practitioner?
A. Assistant Practitioner - Group code 16
Q. Do we have to send in separate AW forms for each employment?
A. Yes