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Consultation response on final pay controls in the NHS Pension Scheme

Read our response to the DHSC’s consultation on proposed changes to the final pay control regulations in the 1995 section of the NHS Pension Scheme.
Pensions

13 April 2021

NHS Employers has responded to the Department of Health and Social Care’s (DHSC’s) consultation on proposed changes to the final pay control regulations, in the 1995 section of the NHS Pension Scheme. The response was based on the collective views, feedback and suggestions received from employers.

The aim of the final pay controls is to protect the NHS Pension Scheme against the costs of excessive increases in pensionable pay. Under the regulations employers are charged if they give a scheme member an increase in pensionable pay which is above an allowable amount in the final three years of their employment.

The proposed changes include increasing this allowable amount and adding further exemptions to the regulations, such as pay increases due to any nationally agreed contracts. Our response outlines that employers strongly support these proposed changes, as they will ensure employers are only charged where they award a pay increase that is within the aim of the policy.

Suggestions were also made by employers on some further areas for consideration:

  • the effective date of the amendments
  • a formal appeals process
  • an online calculator
  • clarity on the interaction with the McCloud judgement.

We would like to thank all the employers that have shared their views with us. We will provide confirmation of the changes and any actions for employers when DHSC formally responds to the consultation.

Read the consultation response.