2015 NHS Pension Scheme
The changes to the NHS Pension Scheme (NHSPS) was launched on 1 April 2015.
The main features of the new scheme are as follows:
- Benefits will be based on Career Average Revalued Earnings (CARE) for all members
- Members will build up pension of 1/54th (1.85%) of their pensionable earnings each year
- The pension that is built up will be revalued each year in line with the increase in the Consumer Price Index (CPI) + 1.5%
- Retirement ages will be brought in line with the State Pension Age (SPA), although members will retain the option to retire between 55 and 75. Retirement before the member's normal retirement date will result in the pension being reduced by an early retirement factor
- There will be an option for members of the 2015 scheme who have a normal pension age higher than 65, to pay additional contributions to reduce any early retirement reductions. Only reductions that would apply from age 65 can be bought out and the maximum reduction is three years
- There will be no automatic lump sum, but members will have the option to exchange part of their pension for a lump sum at retirement, up to 25% of capital value. Commutation will be at a rate of £12 lump sum for every £1 per annum of pension foregone
- Members who how have moved to the 2015 scheme from the 1995 or 2008 sections of the NHSPS, will have the benefits they have built up in those sections preserved. Those preserved benefits will be treated separately and calculated in accordance with the rules of the 1995 or 2008 sections, as appropriate
- Members taking their 1995 benefits after the age of 55 will be able to defer their 2015 benefits, but without the possibility of further accrual in the NHSPS. For example, a member could take their 1995 benefits unreduced at age 60, without the need to take 2015 benefits at the same time. They will, however, become a deferred member of the 2015 Scheme
To discuss how these changes affect you, speak to your Financial Consultant today.
Please use the links to download pdf's regarding Wesleyan's latest guide and Pensions Update