NHS Pensions

NHS Pensions is the firm that administer the NHS staff pension scheme, and the scheme is the biggest private sector pension scheme in Europe.

Anyone working for the NHS will be automatically enrolled into the NHS Pensions scheme, and will start saving towards their retirement with NHS pensions. Staff wishing not to save with the scheme have the option to fill in a SD502 form which will allow them to opt out voluntarily.

The pension scheme is now split into two, with some staff, generally the ones who have worked for the NHS for longer, on the 1995 section of the pension scheme, and others on the 2008 section of the pension’s scheme.

All NHS Pensions, regardless of time started are linked to the staff members pay, and length of time with the NHS. Each year those benefits will also increase in line with inflation so the pension scheme does not get left behind.

Staff will also get the added bonus of life assurance of twice their annual salary from the day they join the scheme, which will be paid as a tax free lump sum to the person of your choice.

Staff can also voluntarily retire early from the age of 55 for 2008 members and 50 for the 1995 members, albeit on a reduced pension as it will be paid to them for longer.

The NHS Pensions trust will also charge staff no administration costs, like most private or stakeholder pensions, and staff have the option to transfer pensions in and out of the scheme, and increase their contributions to increase their retirement income.

NHS Pensions are very generous, although have come under fire from Lord Hutton’s pension report as part of a nation’s effort to cut its debt, and are essentially unaffordable.

Those pensions were however offered, and guaranteed to staff, who have every right to argue they should never have been offered if the NHS cannot afford to pay them.

The big problems have come with staff now living longer in retirement, which is costing so much more in the long run. A member of staff who has a £10,000 a year pension who then lives five years longer than expected will cost the NHS Pensions department an extra £50,000. With 1000 staff, that figure starts to grow very rapidly.

For an NHS Pension Calculator, visit our homepage.