From April 2015 there will be a new NHS Pension scheme. The proposed final agreement outlines the conclusion of discussions on the final scheme design.
The Government have made clear the final agreement sets out their final position on the main elements of scheme design. The majority of unions have agreed to take the agreement to their executives as the outcome of negotiations on scheme design.
At present only limited information is known about the new arrangements as the scheme is still under design. NHS Employers is contributing to discussions on scheme design alongside the Department of Health and staff side representatives through the NHS Pensions Governance Group. We will continue to ensure you are updated of progress and more information will be added to this page once available.
In summary the scheme will offer:
- a Career Average Revalued Earnings (CARE) scheme, with benefits based on a proportion of pensionable earnings during the employees career
- an accrual rate (i.e. the rate that your pension builds up) of 1/54th of each year’s pensionable earnings with no limit on pensionable service. This is a higher accrual rate than both the 1995 and 2008 sections of the NHS scheme
- revaluation of active members’ benefits in line with the Consumer Price Index (CPI) plus 1.5 percent per annum
- a normal pension age at which benefits can be claimed without reduction for early payment linked to the same age as you are entitled to claim your State Pension
- pensions in payment to increase in line with inflation (currently CPI).
Further information and resources
NHS Employers have produced a range of materials to support employers through the transition to the new arrangements:
The Department of Heath have published a range of calculators to enable NHS Pension scheme members to estimate future benefits for the proposed new scheme.
Increased employee contributions
Please note it is important to recognise that the reform of public sector pensions is separate from the increase in NHS Pension scheme member contributions. Further information on increased employee contributions can be found on our increased contributions web page.