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NHS Pensions Scheme
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Last modified date:24 April 2007
The NHS Pension Scheme reflects the value the organisation invests in more flexible working practices. This page sets out the ways in which staff can defer retirement without harming their pension, and how employers will benefit from a richer pool of experience. The NHS Pensions Agency is also available to staff and employers alike to advise and support on entitlement and retirement options.
- The NHS has a fully indexed linked final salary pension scheme.
- Benefits are guaranteed to keep pace with inflation and are payable to members for life. The Scheme covers all NHS employees including those on short-term or temporary contracts and regardless of how many hours staff work or their type of job.
- The Scheme has a notional fund and operates on a mutual assurance basis. This means that everyone pays a standard contribution rate and the risks are shared between the memberships.
- The package of benefits includes immediate life assurance cover, enhanced ill health and redundancy benefits and dependant's benefits. Contributions are refundable for membership of less than two years. Benefits can be paid abroad.
- Employers pay 14 per cent of pensionable pay into the Scheme and employees pay 6 per cent (manual staff pay 5 per cent). The benefits package is worth around 20 per cent of pensionable pay.
The NHS Business Services Agency (BSA) Pensions Division (PD) looks after the administration of the scheme and are able to answer queries from members of the public.
Further information on the NHS Pensions scheme and regulations can be found at the NHS BSA PD website at:
NHS Pension Scheme review
NHS Employers is leading on the review on behalf of NHS organisations, the Department of Health, the NHS Pensions Agency and the National Assembly for Wales. The review partners - employers and unions - have jointly been working towards an NHS Pension Scheme that meets the needs of the modern NHS and its staff, by making benefits more appropriate for today's workforce. Further information on the NHS Pension Scheme review can be found on the NHS Employers website:
Redundancy arrangements
Revised redundancy arrangements were agreed with the Department of Health and came into effect on 1 October 2006. They can be found along with supporting guidance are available on NHS Employers website:
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