New 2015 Pension Scheme

SAVE ITEM
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19 / 6 / 2014

From 1 April 2015 there will be a new NHS Pension Scheme.

The scheme is currently under design and more information will be published in a regulatory consultation in Autumn 2014. The details of this consultation will be published on our consultation webpage once available. The scheme design is being carried out in line with the principles outlined in the proposed final agreement (a summary is available below).

NHS Employers is working in partnership with the NHS Business Services Authority (BSA), the Department of Health (DH) and staff side colleagues in discussions on scheme design. Many of the discussions take place through the NHS Pension Scheme governance arrangements. Read more about the arrangements and learn who your employer representatives are.

We will continue to provide progress updates and more information will be added to this page once available.

Key points of the new scheme:

  • It is a Career Average Revalued Earnings (CARE) scheme, with benefits based on a proportion of pensionable earnings during the members career.
  • It has an accrual rate (ie 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 per cent per annum.
  • 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

We have produced a range of materials to support employers through the transition to the new arrangements:

You will find a series of frequently asked questions for the 2015 scheme on the NHS BSA website.

DH has also published a range of calculators to enable NHS Pension Scheme members to estimate future benefits for the proposed new scheme.

If you would like any more information please contact Stephanie Leary, Pensions Programme Lead, on 0113 306 3213.

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