NHS Pension Input

Klkritikos

Hello!

Looking for some thoughts on this, please.

We have a client who works for the NHS. Does anybody know how you could estimate the pension input amount? I believe statements are not issued until October after the end of the tax year so trying to estimate for this year's pension input amount.

According to NHS Employers, within each pay band there may or may not be an increase depending on the number of years of experience. There may also be increases in line with inflation each year.

Are the salaries in the pay bands the same as the NHS pensionable pay?

In this case, this is for the SPPA 2015 which I believe is Career Average Revaluation scheme. The SPPA website suggests that pensionable pay is not a factor and it is based on actual pay each year, which makes it even more complicated as I imagine this then includes pay for overtime and bonuses.

Thanks!

GarethM

Hi Klkritikos,

This is all based on the NHS England pension scheme but I believe similar principles apply.

2015 (CARE) accrual is based on actual pay (as opposed to full time equivalent pay for the final salary scheme). Unless a GP, your client is likely to be on a strict payscale and their earnings will increase incrementally as they cross pay bands. You should be able to find a copy of the payscales online. They should also get an inflation linked increase every year, in the same way you or I would.

The basic pay they receive in these pay bands will be pensionable. Basic pay is based on 10 'programmed activities'. Any additional programmed activities they take on are generally not pensionable.

They may also receive Clinical Excellence awards (not inflation linked) or overtime pay (percentage of basic pay), some of which will be pensionable, and this is where it can get complicated. Some of the more recent local CEAs are no longer pensionable, so it's best to get as much info as you can from your client. All basic pay is pensionable but it is these ‘extras’ where you need to be careful. Unfortunately there is a long list of possible payments and there is not really a hard and fast rule for any of them.

Your best bet to establish what counts towards pension accrual is to get hold of the most recent payslip you can, or the March payslip for the year in question, and work it backwards from the contribution rate. Alternatively get hold of their Total Reward Statement (TRS), which should now be available for 2019/20. The TRS should have 'NP' against non-pensionable items, but again you can work it backwards from the employee contribution rate.

Hope that helps.