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Understanding my statement

Personal details and summary

These are the details your employer held for you as at 31 March. It includes a summary of the total value of the pay and benefits for the year.

If pension details only are showing this has been taken from information held by NHS Pensions.

What is the summary information?

This shows the payments you have received and any pension contributions made by your employer for the previous Scheme year.

Employer information (Total Reward Statements only)

This sets out the benefits offered locally by your employer(s) such as:

  • childcare vouchers
  • travel passes
  • gym membership
  • car leasing.

You may have chosen to access some of these already. To access additional benefits use the contact details provided by your employer in the local benefits section.

This information has been added directly by your employer and may change throughout the year.

Employment data (Total Reward Statements only)

What employment information can I see?

You can see a subset of your employment information for all of your NHS employments that were active on 31 March and paid via ESR. 'Bank' posts are not currently displayed on the statement.

What is the annual progression information?

This section of the statement provides details of your next pay increment and salary review date.

What is the payment breakdown information?

This summarises the payments you have received and any pension contributions made by your employer for the previous Scheme year. 'Other Allowances' refer to the total of all payments that individually were less than £100 for the year.

The names used to describe the individual payment types are the same as those on your payslip. If you do not understand the meaning of a payment name, please contact your employer. A key to some of the common abbreviations that appear in the payment types is shown in the following table:

Abbreviation

Description

ARRS

Arrears payment

EN

Enhancement payment (e.g. unsocial)

OT

Overtime payment (e.g. Saturday)

NNI

Payment not subject to National Insurance (NI) contributions

NP

Non pensionable for the NHS Pension Scheme

NT

Payment not subject to income tax

NW

Payment not subject to Working Time Directive

OMP

Occupational maternity pay

OSP

Occupational sick pay

R

Refund of deductions

SMP

Statutory maternity pay

SSP

Statutory sick pay

WTD

Working Time Directive

NR

Non recurring pay element

Local Grp

This is a local pay element/ allowance defined by your ESR employer – Please refer to your pay document for further details

Sal Sac Grp

Salary sacrifice

Add Basic Pay

Additional basic pay. This is usually in relation to a part time employee working additional hours

Basic Pay

Basic pay for contracted hours

AfC

Agenda for Change. This may be present in some allowance names and refers to the NHS system that allocates posts to set pay bands

APPL

Additional paternity paid leave

SAP

Statutory adoption pay

SPP

Statutory paternity pay

I have a question about the content of my employment statement - what can I do?

Please contact your employer(s).

Remember that the information provided was what was held by your employer(s) and NHS Pensions as at 31 March.

Information about your Officer pension statement

How have my NHS pension benefits been calculated?

More information about how your NHS pension, lump sum and survivor benefits have been calculated are available on the NHS Pensions website.

What are my Standard Benefits?

The standard benefits displayed may include current* benefits - an estimate based on the latest known information.

 *Projections are only provided for officer members of the 1995/2008 Scheme on the assumption you will continue to be a contributing member of that scheme until you retire. We are unable to provide projections for any other members.  

Please note that any benefits you have built up from 1 April 2017 will not be included in your 2016/17 statement.

This estimate is intended to give an indication of their current value at last update. You are not able to claim these benefits until Normal Pension Age. If you do want to take them earlier you must have reached your minimum pension age and the benefits shown will be reduced for early retirement. They are only payable once the appropriate application has been made and accepted. Members can find further information about when these benefits may become payable by viewing the Member Guides which are available on the NHS Pensions website.

Please note, the hypothetical annuity cost is not a standard benefit but has been included on your statement for information only. Please see below for more information about this.

Pay

In the 1995 Section of the NHS Pension Scheme your benefits are calculated using your ‘Final years Pensionable Pay’ and in the 2008 Section your benefits are calculated using your ‘Reckonable Pay’. The pay we use is worked out differently in each of the two sections. Your pensionable pay is likely to change between now and when you leave the Scheme so the actual figures used at retirement will be different.

In the 2015 Scheme your benefits are calculated using your ‘Pensionable Earnings’ from each Scheme year and are shown in the pensionable earnings statement. Further information can be found in the Member Guide available on the NHS Pensions website.

Please note that the pay we have used to calculate your NHS pension benefits may be different to the actual pay you have received as in some instances not all allowances and payments are pensionable. In addition if you work part time we will have used your full time equivalent pay for benefits calculated in the 1995/2008 Scheme.

Pension

Using your NHS Pension Scheme membership and your pensionable pay we have estimated your NHS pension as at the point at which your NHS Pension Scheme membership records were last updated by your employer. The figure shown is an annual amount.

In the 1995 Section members receive 1/80th of their pensionable pay for each year or part year of membership. The calculations for this are as follows:

 1/80 × pensionable pay × years of membership*

 * For example, 5 years and 213 days of membership is equal to 5.58 years of membership.

In the 2008 Section members receive 1/60th of their reckonable pay for each year or part year of membership. The calculation for this is as follows: 

1/60 × reckonable pay × years of membership*

 * For example, 5 years and 213 days of membership is equal to 5.58 years of membership.

In the 2015 Scheme members receive 1/54th of their pensionable earnings for each year or part year of membership. The calculation for this is as follows:

 1/54 x pensionable earnings for Scheme year*

 *This will be subject to revaluation annually on 1 April each year. Please note: your 2017 statement has been produced as at 31 March, the figures shown have not yet been revalued.

If you are a member of the NHS Pension Scheme who moved to the 2008 Section as part of the NHS Pension Choice Exercise your pension is reduced to pay for the standard lump sum you must take. This is explained in more detail below.

Your pension benefits will be reduced if paid before your Normal Pension Age. How much the reduction is depends on how much earlier than the Normal Pension Age the pension is paid. For more information about normal pension ages in the NHS Pension Scheme please see below.

Please note that your Annual Benefit Statement does not include any Additional Pension that is currently being, or has already been purchased. This will be calculated at retirement. 

Lump sum

The 1995 Section automatically provides members with a lump sum at retirement that is normally three times their pension. If you chose to move to the 2008 Section as part of the NHS Pension Choice Exercise, when you retire you must take a lump sum. The minimum lump sum you must take is based on the amount of membership (up to 31 March 2008) that moved to the 2008 Section. This is not optional. This standard lump sum in the 2008 Section will be paid by reducing your pension by £1 for every £12 of lump sum that you take. If you are a member of the 2008 Section and you did not move to this Section as part of the NHS Pension Choice Exercise there is no automatic lump sum. You may however convert part of your pension to provide for a lump sum.

If you are a member of the 2015 Scheme there is no automatic lump sum. You may however convert part of your pension to provide for a lump sum.

Hypothetical Annuity cost

The hypothetical annuity cost is not a standard benefit but has been included on your statement to demonstrate the likely cost of buying similar benefits on the ‘open market’ as at the effective date of the statement. The figures are based on market conditions at this date and costs could vary significantly at different dates. The factors used in the calculation assume a Normal Pension Age of 60 in the 1995 Section, 65 in the 2008 Section and 65 in the 2015 Scheme.

Please note this amount is for general comparison purposes only and it is not possible to take this value from the pension scheme. It must also not be used as a Cash Equivalent Transfer Value (CETV) for divorce settlement purposes.

Membership

The membership totals on your statement have been calculated as follows:

Reckonable Membership – This is the amount of membership used to calculate your benefits. If you have worked part time* this membership has been scaled to its whole time equivalent length. It includes any transfers in of membership from other pension schemes, additional membership due to Mental Health Officer status (1995 Section only) and any Added Years purchased to date. (1995 Section only - If an estimate has been calculated to a date prior to the added years contract end date a proportional a credit will be included.)

*Bank Staff - Please note that due to the specific nature of your employment contract, bank posts will not feature in the TRS Employment section of the statement. Nor will any such post be shown as contributing to any financial summary on the Personal Information and Summary page. Pension contributions will however be taken into account in the ABS element of your statement.

Calendar Length Membership – This is the actual amount of time you have contributed to the Scheme. This does not take account of any scaling for part time membership. It includes any transfers in of membership from other pension schemes, additional membership due to Mental Health Officer status (1995 Section only) and Added Years purchased to date. (1995 Section only - If an estimate has been calculated to a date prior to the Added Years contract end date a proportional credit will be included.)

Please note: If you claim your pension prior to the end date of the Added Years contract, the pension benefits provided by that contract will be subject to a reduction. This is because they will be put into payment earlier and for longer.

Limiting your membership – You are not allowed to have more than 45 years membership counted at its calendar length by the time you retire.

In addition, if you are in the 1995 Section:

  • You are not allowed to have more than 40 years membership at the earlier of (1) your Normal Pension Age, or (2) 1 April 2008. However, if you have Special Class status you are not allowed to have more than 40 years membership at age 55.
  • If your Normal Pension Age is 60 years, your Scheme contributions will cease when you have (1) built up 45 years membership, or (2) reached age 75 years.
  • If your Normal Pension Age is 55 years, your Scheme contributions will cease when you have (1) built up 45 years membership and you are at least 60 years of age, or (2) reached age 65 years.

In addition, if you are in the 2008 Section:

  • Your Scheme contributions will cease when you have (1) built up 45 years membership, or (2) reached age 75 years. (Please note: you may opt to continue to pay contributions into the 2008 Section beyond 45 years. More information is available in the 1995/2008 Member Guide.

There is no maximum limit to membership built up in the 2015 Scheme. Your Scheme contributions will cease when you reach age 75.

Further information can be found on NHS Pensions website.

Contributions

Employee contributions –The annual contributions (excluding Added Years and Additional Pension contributions) that you have paid into the Scheme during the year prior to the ‘updated to’ date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year.

Employer contributions - The annual contributions (excluding Added Years and Additional Pension contributions) that have been paid into the Scheme during the year prior to the ‘updated to’ date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year. Please note that if you left the NHS Pension Scheme some time ago this information may not be displayed on your statement.

Added Years contributions – The annual Added Years contributions that you have paid into the Scheme during the year prior to the 'updated to' date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year.

Additional Pension contributions – The annual Additional Pension contributions that you have paid into the Scheme during the year prior to the 'updated to' date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year.

ERRBO contributions - The annual Early Retirement Reduction Buy Out (ERRBO) contributions that you have paid into the Scheme during the year prior to the 'updated to' date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year.

What is a maximum lump sum?

At retirement members of both the 1995 and 2008 Sections of the Scheme (except members who left before 1 April 2008) and also the 2015 Scheme may be able to exchange some of their annual pension to provide a lump sum / larger lump sum. HMRC put a number of limits on the amount of tax free lump sum a member can take. The limit is the lower of:

  • 25% of the capital value of your benefits to be paid after commutation or
  • 25% of the remaining standard Lifetime Allowance.

An example can be found in the Member Guides and further information about Lifetime Allowance is available on the NHS Pensions website.

How do I obtain a maximum lump sum?

In either section you can increase the amount of lump sum you take (and have a smaller pension). This is paid for by reducing your pension by £1 for every £12 of extra lump sum you choose to take.

However HMRC limit the amount of pension you can convert, as shown above without a charge being applied. The illustration included in your statement shows the estimated amount of pension you might expect, should you convert the maximum amount of pension to lump sum. It does not take into account HMRC limits or your Lifetime Allowance position e.g. if you have already taken other benefits from other pension provider(s). If you have some form of transitional protection from HMRC then your lump sum and Lifetime Allowance position will need to be checked at retirement.

NHS Pension Scheme legislation does not allow you to commute pension to additional lump sum that would cause you to have a pension below your guaranteed minimum pension (if you have membership prior to 6 April 1997) or a lump sum that HMRC identify as an unauthorised lump sum payment.

Please note that giving up pension for lump sum does not affect the amount of survivor pension paid to your surviving spouse, civil partner or a qualifying partner you have nominated to receive an adult dependant  pension.

What benefits may be payable in the event of my death?

The Scheme provides a lump sum on death and pension benefits to your dependants in the event of your death. The benefits payable will depend on your circumstances at the time of your death.

A lump sum on death is a normally tax free sum of money that (1) is payable following your death whilst still an active Scheme member or (2) may be payable following death in retirement if you have been in receipt of your pension for less than five years.

A lump sum on death is paid to the organisation, or one or more persons you have specifically nominated to receive it. If you have not made such a nomination the lump sum on death will be paid to your surviving spouse, civil partner or qualifying nominated partner if you have one. Otherwise, it will be paid to your legal personal representative.

The lump sum on death quoted in this illustration is based on your current circumstances.

If you are a current contributing member this illustration has been calculated as follows:

2 x Actual pay* (*pensionable pay - 1995 Section, or reckonable pay - 2008 Section)

In the 2015 Scheme, the higher of:

  • 2 x the relevant earnings in the last 12 months of pensionable membership
  • 2 x the revalued pensionable earnings for the Scheme year, up to 10 years earlier, with the highest revalued pensionable earnings

If you are a deferred member this illustration has been calculated as follows:

3 x Annual pension (1995 Section)

or

2.25 x Annual pension (2008 Section)

or

2.025 x the annual pension the member would have received had they retired on the date of death (2015 Scheme)

The benefits payable will depend on the circumstances at the time of your death and change significantly depending on whether you are a contributing member or a former member of the NHS Pension Scheme. Any lump sum on death that may be payable following death in retirement will be less. For more information about benefits payable on death please refer to the 'Family and your pension' section of the NHS Pensions website.

An adult dependant's pension may also be paid to your surviving partner. This pension is payable for the life of your surviving partner. The rate of pension depends on your circumstances at the time of your death.

A children's pension may also be paid to each of your dependant children up to their 23rd birthday.

More detailed information about the life assurance benefits provided by the NHS Pension Scheme and how they are calculated be found in the Member Guides.

How can I make/change a nomination?

If you have already made a nomination the details we hold are shown on your statement. If you are married, in a civil partnership or have a nominated qualifying partner and want your death benefits to be paid to your spouse/partner then you do not need to make a nomination.

If you have not yet made a nomination and wish to do so, or, wish to change an existing nomination please visit the NHS Pensions website.

What is the Normal Pension Age?

It is age 60 in the 1995 Section and 65 in the 2008 Section. However members with Special Class status in the 1995 Section may have the right to retire from a Normal Pension Age of 55. In the 2015 Scheme it is the same as your State Pension Age, or age 65 if that is later. 

If you held Special Class status, were made redundant prior to age 50 and have not rejoined the NHS Pension Scheme you may be able to claim your deferred benefits from age 55. 

More detailed information about all of the pension benefits provided by the NHS Pension Scheme can be found on the NHS Pensions website.

Important information

A projection has not been included as part of your statement, as we are unable to project your future earnings. NHS pension benefits for membership after 2015 are also subject to change.

If you would like more information about the planned changes and to find out whether or not ‘protection’ may apply to you, please visit the NHS Pensions website.

1995 Section Disclaimer

Please be aware this is an estimate and shown for guidance only. You should check the amount of Pensionable Pay quoted is consistent with your current pay or what would be the full time equivalent pay if you currently work part time. If the figure is significantly different you should contact your employer. Figures are based on known information. Exact retirement figures cannot be given until final pay and service details are known.

Please note - Any projection to your Normal Pension Age of 60 (or 55 if you have Special Class/MHO status) is provided on the assumption you continue to be a contributing member of the 1995 Section until you retire.

For further information about whether or not protection may apply to you is available on the NHS Pensions website.

2008 Section Disclaimer

Please be aware this is an estimate and shown for guidance only. You should check the amount of Reckonable Pay quoted is consistent with your current pay or what would be the full time equivalent pay if you currently work part time. If the figure is significantly different you should contact your employer. Figures are based on known information. Exact retirement figures cannot be given until final pay and service details are known.

Please note - Any projection to your Normal Pension Age of 65 is provided on the assumption you continue to be a contributing member of the 2008 Section until you retire.

For further information about whether or not protection may apply to you is available on the NHS Pensions website.

2015 Scheme Disclaimer

Please be aware this is an estimate and shown for guidance only. You should check the amount of Pensionable Pay quoted is consistent with your current pay. If the figure is significantly different you should contact your employer. Figures are based on known information. Exact retirement figures cannot be given until final pay and service details are known.

Please note - A projection of your pension has not been provided to your Normal Pension Age as it is not possible to predict your pensionable earnings nor is it possible to predict future revaluation rates.

Pension scams: A lifetime’s savings lost in a moment

The Pensions Regulator has refreshed its campaign on pension liberation and warned that pension scams are on the increase in the UK. Some NHS Pension Scheme members may have already been targeted. ‘One off pension investments’, ‘pension loans’ or upfront cash are being used to entice savers. For most people the offers will be bogus and members who are taken in will probably lose most, if not all, of their savings. They may also be subject to tax charges of over half their transfer value for taking an ‘unauthorised payment’.

The Pensions Regulator has published new guidance for members, pension scheme administrators, pension providers and independent financial advisers (IFAs) to raise awareness of Pension Scams.

The Pension scams awareness booklet for members is available on The Pensions Regulator website.

Information for Independent Financial Advisors

Independent Financial Advisors requiring pensions information for members of the NHS Pension Scheme should request a copy of their statement directly from the member. This service is free of charge and is a faster and more convenient way for members to obtain information about their NHS pension.

 

Information about your Practitioner pension statement

How have my NHS pension benefits been calculated?

More information about how your NHS pension, lump sum and survivor benefits have been calculated is available on the NHS Pensions website.

What are my Standard Benefits?

The standard benefits displayed include current* benefits - an estimate based on the latest known information. 

*Projections are only provided for officer members of the 1995/2008 Scheme on the assumption you will continue to be a contributing member of that scheme until you retire. We are unable to provide projections for any other members.

Please note that any benefits you have built up from 1 April 2016 will not be included in your 2016/17 statement.

This estimate is intended to give an indication of the current value at last update. You are not able to claim these benefits until Normal Pension Age. If you do want to take them earlier you must have reached your minimum pension age and the benefits shown will be reduced for early retirement. They are only payable once the appropriate application has been made and accepted. Members can find further information about when these benefits may become payable by viewing the Member Guides available on the NHS Pensions website.

Please note, the hypothetical annuity cost is not a standard benefit but has been included on your statement for information only. Please see below for more information about this.

Pay

The amount of uprated practitioner earnings used to calculate your practitioner benefits, including any salary from hospital / community work that will be treated as practitioner earnings. This will also include any uprating that applies if you have moved to the 2015 Scheme.

This information is shown in your dynamising sheet.

Pension

To calculate practitioner benefits we use your uprated earnings (practitioner remuneration). If you are a member of the 1995 Section then your basic annual practitioner pension is 1.4% of this total amount and if you are a member of the 2008 Section your basic annual practitioner pension is 1.87% of this total amount. Please note that the calculations are based on the latest pay and dynamising factors we hold on your record.

In the 2015 Scheme your benefits are calculated using your ‘Pensionable Earnings’ from each Scheme year and are shown in the pensionable earnings statement.

If you have had separate periods of salaried hospital/community (i.e. officer) membership we will either include this in your practitioner pension or provide a separate officer pension. This officer pension will be calculated as per the information on the Officer section above. These separate officer benefits will then be added to your practitioner benefits and displayed as a single total on your statement. In this scenario we will display both reckonable or pensionable pay on your statement as well as remuneration.

Further information can be found in the Member Guides available on the NHS Pensions website.

Lump sum

The 1995 Section automatically provides members with a lump sum at retirement that is normally three times their pension. If you chose to move to the 2008 Section as part of the NHS Pension Choice Exercise, when you retire you must take a lump sum. The minimum lump sum you must take is based on the amount of membership (up to 31 March 2008) that moved to the 2008 Section. This is not optional. This standard lump sum in the 2008 Section will be paid by reducing your pension by £1 for every £12 of lump sum that you take. If you are a member of the 2008 Section and you did not move to this Section as part of the NHS Pension Choice Exercise there is no automatic lump sum. You may however convert part of your pension to provide for a lump sum. 

If you are a member of the 2015 Scheme there is no automatic lump sum. You may however convert part of your pension to provide for a lump sum. This is explained in more detail below.

Survivor pension

A pension may be paid to your surviving spouse, registered civil partner, or qualifying partner you have nominated to receive a survivor pension. This pension is payable for the life of your surviving partner. The amounts payable from the 1995 Section, 2008 Section and 2015 Scheme do differ. The rate of survivor pension also depends on your relationship status and circumstances at the time of your death. Details are available in the 1995/2008 and 2015 Member Guides.

Note that, if you are in the 1995 Section the survivor pension for a widower, widow (from a marriage between a same sex couple), civil partner or nominated partner is calculated using only the membership you built up from 06 April 1988. However, the survivor pension will be increased if, by the projected retirement date, you have bought a bigger survivor pension. 

For the purposes of this illustration we have worked out survivor benefits assuming you are married and at the time of your death you were in receipt of your annual pension. 

Further information can be found in the NHS Pension Member Guides.

Hypothetical annuity cost

The hypothetical annuity cost is not a standard benefit but has been included on your statement to demonstrate the likely cost of buying similar benefits on the ‘open market’ as at the effective date of the statement. The figures are based on market conditions at this date and costs could vary significantly at different dates. The factors used in the calculation assume a Normal Pension Age of 60 in the 1995 Section, 65 in the 2008 Section and 65 in the 2015 Scheme. 

Please note this amount is for general comparison purposes only and it is not possible to take this value from the pension scheme. It must also not be used as a Cash Equivalent Transfer Value (CETV) for divorce settlement purposes.

Membership

The membership totals on your statement have been calculated as follows:

Reckonable membership – This is the amount of membership used to calculate your ‘officer’ benefits. If you have worked part time this membership has been scaled to its whole time equivalent length. It includes any transfers in of membership from other pension schemes, additional membership due to Mental Health Officer status (1995 Section only) and any Added Years purchased to date. (1995 Section only - If a statement has been calculated to a date prior to the added years contract end date a proportional credit will be included.) Please note if you do not have any separate officer benefits or your officer membership has been converted to practitioner benefits then this section will not be shown.

Calendar length membership – This is the actual amount of time you have contributed to the Scheme. This does not take into account any scaling for part time membership. It includes any transfers in of membership from other pension schemes, additional membership due to Mental Health Officer status (1995 Section only) and Added Years purchased to date. (1995 Section only - If a statement has been calculated to a date prior to the added years contract end date a proportional credit will be included.)

Please note: If you claim your pension prior to the end date of the Added Years contract, the pension benefits provided by that contract will be subject to a reduction. This is because they will be put into payment earlier and for longer.

Limiting your membership – You are not allowed to have more than 45 years membership counted at its calendar length by the time you retire.

In addition, if you are in the 1995 Section:

  • You are not allowed to have more than 40 years membership at the earlier of (1) your Normal Pension Age, or (2) 01 April 2008. However, if you have special class status you are not allowed to have more than 40 years membership at age 55 years.
  • If your Normal Pension Age is 60 years, your Scheme contributions will cease when you have (1) built up 45 years membership, or (2) reached age 75 years.
  • If your Normal Pension Age is 55 years, your Scheme contributions will cease when you have (1) built up 45 years membership and you are at least 60 years of age, or (2) reached age 65 years.

In addition, if you are in the 2008 Section:

  • Your Scheme contributions will cease when you have (1) built up 45 years membership, or (2) reached age 75 years. (Please note: you may opt to continue to pay contributions into the 2008 Section beyond 45 years. More information is available in the 1995/2008 Member Guide).

There is no maximum limit to membership built up in the 2015 Scheme. Your Scheme contributions will cease when you reach age 75.

Further information can be found on the NHS Pensions website.

Contributions

Employee contributions –The annual contributions (excluding Added Years and Additional Pension contributions) that have been paid into the Scheme during the year prior to the ‘updated to’ date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year.

Employer contributions - The annual contributions (excluding Added Years and Additional Pension contributions) that you have paid into the Scheme during the year prior to the ‘updated to’ date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year. Please note that if you left the NHS Pension Scheme some time ago this information may not be displayed on your statement.

Added Years contributions – The annual Added Years contributions that you have paid into the Scheme during the year prior to the 'updated to’ date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year.

Additional Pension contributions – The annual Additional Pension contributions that you have paid into the Scheme during the year prior to the 'updated to' date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year.

ERRBO contributions - The annual Early Retirement Reduction Buy Out (ERRBO) contributions that you have paid into the Scheme during the year prior to the 'updated to' date on your statement. Depending on when you started/left your latest employer these contributions may be for a part year.

What is a maximum lump sum?

At retirement members of both the 1995 and 2008 sections of the Scheme (except members who left before 1 April 2008) and also the 2015 Scheme may be able to exchange some of their annual pension to provide a lump sum / larger lump sum. HMRC put a number of limits on the amount of tax free lump sum a member can take. The limit is the lower of:

  • 25% of the capital value of your benefits to be paid after commutation or
  • 25% of the remaining standard Lifetime Allowance.

An example can be found in the Member Guides and further information about the Lifetime Allowance is available on the NHS Pensions website.

How do I obtain a maximum lump sum?

In either section you can increase the amount of lump sum you take (and have a smaller pension). This is paid for by reducing your pension by £1 for every £12 of extra lump sum you choose to take. 

However HMRC limit the amount of pension you can convert, as shown above without a charge being applied. The illustration included in your statement shows the estimated amount of pension you might expect, should you convert the maximum amount of pension to lump sum. It does not take into account HMRC limits or your Lifetime Allowance position e.g. if you have already taken other benefits from other pension provider(s). If you have some form of transitional protection from HMRC then your lump sum and Lifetime Allowance position will need to be checked at retirement. 

NHS Pension Scheme legislation does not allow you to commute pension to additional lump sum that would cause you to have a pension below your guaranteed minimum pension (if you have membership prior to 6 April 1997) or a lump sum that HMRC identify as an unauthorised lump sum payment. 

Please note that giving up pension for lump sum does not affect the amount of survivor pension paid to your surviving spouse, civil partner or a qualifying partner you have nominated to receive a survivor pension.

What benefits may be payable in the event of my death?

The Scheme provides a life assurance lump sum and pension benefits to your dependants in the event of your death. The benefits payable will depend on your circumstances at the time of your death.

A life assurance lump sum is a normally tax free sum of money that (1) is payable following your death whilst still an active Scheme member or (2) may be payable following death in retirement if you have been in receipt of your pension for less than five years.

A life assurance lump sum is paid to the organisation, or one or more persons you have specifically nominated to receive it. If you have not made such a nomination the life-assurance lump sum will be paid to your surviving spouse, civil partner or qualifying nominated partner if you have one. Otherwise, it will be paid to your legal personal representative.

The life assurance lump sum quoted in this illustration is based on your current circumstances.

If you are a current contributing member this illustration has been calculated as follows:

2 x Actual pay* (*pensionable pay - 1995 Section, or reckonable pay - 2008 Section)

In the 2015 Scheme, the higher of:

  • 2 x the relevant earnings in the last 12 months of pensionable membership
  • 2 x the revalued pensionable earnings for the Scheme year, up to 10 years earlier, with the highest revalued pensionable earnings

If you are a deferred member this illustration has been calculated as follows:

3 x Annual pension (1995 Section)

or

2.25 x Annual pension (2008 Section)

or

2.025 x the annual pension the member would have received had they retired on the date of death (2015 Scheme)

The benefits payable will depend on the circumstances at the time of your death and change significantly depending on whether you are a contributing member or a former member of the NHS Pension Scheme. Any life assurance lump sum that may be payable following death in retirement will be less. For more information about benefits payable on death please refer to the NHS Pensions website.

A pension may also be paid to your surviving partner. This pension is payable for the life of your surviving partner. The rate of survivor pension depends on your circumstances at the time of your death.

A child allowance may also be paid to each of your dependent children up to their 23rd birthday.

More detailed information about the life assurance benefits provided by the NHS Pension Scheme and how they are calculated be found in the Member Guides.

How can I make/change a nomination?

If you have already made a nomination the details we hold are shown on your statement. If you are married, in a civil partnership or have a nominated qualifying partner and want your death benefits to be paid to your spouse/partner then you do not need to make a nomination. 

If you have not yet made a nomination and wish to do so, or, wish to change an existing nomination please visit the NHS Pensions website.

What is the Normal Pension Age?

It is age 60 in the 1995 Section and 65 in the 2008 Section. However members with Special Class status in the 1995 Section may have the right to retire from a Normal Pension Age of 55. In the 2015 Scheme it is the same as your State Pension Age, or age 65 if that is later. 

If you held Special Class status, were made redundant prior to age 50 and have not rejoined the NHS Pension Scheme you may be able to claim your deferred benefits from age 55. 

More detailed information about all of the pension benefits provided by the NHS Pension Scheme can be found on the NHS Pensions website.

Important information

A projection has not been included as part of your statement, as we are unable to project your future earnings. NHS pension benefits for membership after 2015 are also subject to change.

If you would like more information about the planned changes and to find out whether or not ‘protection’ may apply to you, please visit the NHS Pensions website.

1995 Section Disclaimer

Please be aware this is an estimate and shown for guidance only. You should check the amount of Pensionable Pay quoted is consistent with your current pay or what would be the full time equivalent pay if you currently work part time. If the figure is significantly different you should contact your employer. Figures are based on known information. Exact retirement figures cannot be given until final pay and service details are known.

Please note - Any projection to your Normal Pension Age of 60 (or 55 if you have Special Class/MHO status) is provided on the assumption you continue to be a contributing member of the 1995 Section until you retire.

For further information about whether or not protection may apply to you is available on the NHS Pensions website.

2008 Section Disclaimer

Please be aware this is an estimate and shown for guidance only. You should check the amount of Reckonable Pay quoted is consistent with your current pay or what would be the full time equivalent pay if you currently work part time. If the figure is significantly different you should contact your employer. Figures are based on known information. Exact retirement figures cannot be given until final pay and service details are known.

Please note - Any projection to your Normal Pension Age of 65 is provided on the assumption you continue to be a contributing member of the 2008 Section until you retire.

For further information about whether or not protection may apply to you is available on the NHS Pensions website.

2015 Scheme Disclaimer

Please be aware this is an estimate and shown for guidance only. You should check the amount of Pensionable Pay quoted is consistent with your current pay. If the figure is significantly different you should contact your employer. Figures are based on known information. Exact retirement figures cannot be given until final pay and service details are known.

Please note - A projection of your pension has not been provided to your Normal Pension Age as it is not possible to predict your pensionable earnings nor is it possible to predict future revaluation rates.

Pension scams: A lifetime’s savings lost in a moment

The Pensions Regulator has refreshed its campaign on pension liberation and warned that pension scams are on the increase in the UK. Some NHS Pension Scheme members may have already been targeted. ‘One off pension investments’, ‘pension loans’ or upfront cash are being used to entice savers. For most people the offers will be bogus and members who are taken in will probably lose most, if not all, of their savings. They may also be subject to tax charges of over half their transfer value for taking an ‘unauthorised payment’.

The Pensions Regulator has published new guidance for members, pension scheme administrators, pension providers and independent financial advisers (IFAs) to raise awareness of Pension Scams.

The Pension scams awareness booklet for members is available on The Pensions Regulator website.

Information for Independent Financial Advisors

Independent Financial Advisors requiring pensions information for members of the NHS Pension Scheme should request a copy of their statement directly from the member. This service is free of charge and is a faster and more convenient way for members to obtain information about their NHS pension.