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Welcome
The scheme is an important and valuable staff benefit for people working in the NHS. As a member, you get an excellent package of pension benefits, protected against inflation and guaranteed by the Government.
Scheme benefits are worth around 20% of pay overall but only cost around 3.5% - 5% of net take-home pay for most members due to tax relief and payment of lower rate National Insurance contributions. This is extremely good value for money, especially when you know your benefits are secure and will be there when you need them.
If you join the scheme, you will receive life insurance cover of twice your pensionable pay from the day you join.
Membership is voluntary, however you are entered into the scheme automatically unless you decide not to join. You can make alternative provision through a personal pension or be contracted in to the State Earnings Related Pension Scheme (SERPS). Membership of a good occupational scheme, such as the NHS scheme, is usually recommended.
The next section contains information which enables you to compare the scheme with alternative ways of providing a pension. Please make sure you read it and seek independent financial advice if you are in any doubt about your pension choice.
Following the NHS Scheme reform changes which came into effect from 1 April 2008, there are 2 different categories of members, those who have been members pre April 2008 and those who become members post April 2008. Literature has been prepared for both categories of member and can be viewed in our Forms and Leaflets area of this website.
There will be a Choice exercise in 2009 to allow members of the pre April 2008 section of the scheme to transfer to the post April 2008 section. Members who are eligible for the Choice will be contacted. More details of NHS Choice 2009.
Brief overview of what the schemes can provide?
Benefits for pre April 2008 members
- A retirement pension based on 1/80th of final years pensionable pay per year of service.
- A retirement lump sum of 3 x pension with the option to exchange part of the pension for more cash. Follow this link to an illustrative calculator of this option.
- Life insurance of 2 years pay while you are working.
- Pension and allowances for either your legal spouse, registered civil partner, or qualifying partner from the date of your death. Dependant children’s pensions are payable until age 23 or longer depending on certain circumstances.
- Benefits if you have to retire because of permanent ill-health.
- Preserved benefits if you leave pensionable employment before age 60 without being entitled to an immediate pension and you have at least 2 years qualifying service.
Benefits for post April 2008 members
- A retirement pension based on 1/60th of reckonable pay per year of service.
- Option to exchange part of Pension benefits for cash lump sum at retirement, up to 25% of overall Pension Value.
- Life insurance of 2 years pay while you are working.
- Pensions and allowances for either your legal spouse, registered civil partner, or qualifying partner from the date of your death. Dependant children’s pensions are payable until age 23 or longer depending on certain circumstances.
- Benefits if you have to retire because of permanent ill-health.
- Preserved benefits if you leave pensionable employment before age 65 without being entitled to an immediate pension and you have at least 2 years qualifying service.
Pensions and allowances are index linked to protect their value. Benefits are guaranteed and are based on your pay and service in the scheme.
Members pre April 2008 can retire from age 50, however this will increase to 55 from 6 April 2010, members post April 2008 minimum pension age will be 55.
You do not pay administration costs.
Pension benefits can be transferred into and out of the scheme, but if you move to another job in the NHS your membership will continue. You may be able to increase your contributions to increase your benefits.