Changes to the NHS Pension scheme - have your say


24 / 1 / 2014 3.31pm

The Department of Health is currently running a consultation on proposed changes to the NHS Pension Scheme. In addition to the proposed member contribution increases for 2014/15, the consultation is also seeking views on:

  • introducing interest charges for employers for late payments
  • introducing charges for excessive pay increases in the last 3 years before retirement
  • the widening of NHS Pension scheme (NHSPS) access to new Independent Providers (IPs).

Representing your views

We are submitting a response to the consultation on behalf of employers and would like to hear your views on how you believe the proposed changes will impact your organisation.

Interest charges for late payment of contributions

Late payment of scheme contributions will result in administration charges and interest charges for all NHSPS employers, not just IPs.

There will be no administration charges or interest if employers pay their scheme contributions by the current due dates e.g. the 19th day of the month following deduction.

  • Q. Are there ever occasions when you make late payments and therefore feel that this rule will affect you?

New charge for excessive pay increases in final 3 years prior to retirement (1995 section only)

Employers will be charged for the cost of pension benefits (not death benefits) calculated on any pay increases they make which are over and above a new 'cap'. The cap will be equal to the level of consumer prices index (CPI) + 4.5 per cent.

The introduction of this cap is only intended to affect 'excessive' pay increases for members in the last three years, which may have a significant affect on their pension benefits following retirement.

  • Q. Do you think this will support a fair pension provision for all members?

Widening of NHSPS access to new IPs

The access review extends NHSPS access to IPs who meet certain criteria from 1 April 2014.

We are interested in hearing your thoughts on this extended access and in particular on any impact it may have on your organisation.

  • Q. Do you think this will impact your organisation in any way?

Have your say

To contribute to our response, please send your thoughts to:, or to discuss further please call Stephanie Leary on 0113 306 3213.

We would like to hear from you no later than 5 February 2014 in order to include your comments in our response.

Further information

We also encourage you to submit your own responses to the consultation directly to the Department of Health.

The consultation will close on 10 February 2014.

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