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Membership, contributions and pay

If you do not have access to Pensions Online (POL) and need to notify us of:

Pay

If you have any queries about member performance related pay or bonuses, please contact us.

 

2008 Section

Read the following factsheets to help you understand pensionable pay for 2008 Section members:

 

Total reckonable pay (PDF: 235KB)

Earnings Cap (PDF: 187KB)

Protection of Pay

Read the following factsheets to help you understand Protection of Pay (1995/2008 Scheme) and Voluntary Protection of Pay (1995 Section only):

Protection of Pay and Voluntary Protection of Pay (PDF: 153KB)

Use the request to protect Pensionable Pay (SM R9 EA) (Word: 47.6KB) form to request individual protection of pay for a member.

If you have a number of staff who have all suffered a reduction in pay through no fault of their own, you should complete and password protect the universal spreadsheet (Excel: 144KB), before emailing NHS Pensions.

Use the following universal bulk reply letter template (Word: 40.5KB) to notify members once you receive confirmation that protection of pay has been accepted by NHS Pensions.

Deemed pay

Read the deemed pay factsheet (PDF: 87.9KB) for more information.

 

Membership

Read the following factsheets for information about Special Class, Mental Health Officers and calculating membership.

Dismissal (Exit code 02) (PDF: 14KB)

Maximum membership and age restrictions (PDF: 364KB)

Paid and unpaid leave

Sick leave factsheet (PDF: 144KB)

Maternity pay, paternity pay, parental leave and adoption leave (PDF: 165KB)

Authorised leave and career breaks (PDF: 161KB)

Annual leave

Paid annual leave taken in the normal course of an employment in respect of a member’s usual annual leave entitlement is pensionable and contributions will be collected in the normal way.

 

Where employers operate flexible leave schemes pension contributions, pensionable pay and membership should be maintained at the original level.

 

If a member leaves their employment with outstanding annual leave to be paid in respect of their usual annual leave entitlement, the date of leaving should be extended by the appropriate number of days.

 

A member cannot be pensionable in two employments at the same time, if they equate to more than whole time.

 

For instance, if a member is leaving a whole time employment and moving to another whole time employment, they may finish on a Friday, start their new job the following Monday, but have three weeks untaken annual leave owing from the first employer. That period of leave is pensionable with the first employer and consequently is not pensionable with the second employer.

 

Contributions for the new job should start in three weeks’ time.

 

NHS Pensions will notify an employer if a start date or end date has to be adjusted for pension purposes, due to overlapping employments with another employer.

 

Whole time employments take precedence over part time employments because this is more beneficial for the member.

 

Payments for annual leave should not be confused with payments made in lieu of notice, which are compensatory payments and non-pensionable.

Paid notice

Annual Leave

Annual leave taken in the normal course of an employment is usually paid leave which will be pensionable. Contributions will be collected in the normal way.

 

A member cannot be pensionable in two jobs at the same time that come to more than whole time. A period of employment, which is wholly contained within a period of terminal leave is not pensionable and contributions must not be deducted. For instance, where a member is leaving and moving to another job, they may actually finish on say Friday, start their new job the following Monday but have three weeks untaken annual leave or paid notice from the first employer, for which, of course, they will be paid. That period is pensionable with the first employer. Consequently it is not pensionable with the second employer and contributions for the new job will start in three weeks’ time.

 

If a member does not wish to pay the pension contributions for the period of paid notice, they must opt out of the NHS Pension Scheme prior to the start of the paid notice/ annual leave. Please note a member cannot opt out of the Scheme during a period of paid notice.

 

Payments made in lieu of notice

Payments by an employer in lieu of notice are not pensionable, but are in effect compensation to an employee for breach of contract of employment by the employer: no contributions are payable; and the period covered by the payment is not Membership since it is not a period of actual employment; the date of termination of employment is the last day of membership.

 

Summary

A period of paid notice is pensionable and extends membership.

A payment made in lieu of notice is not pensionable and does not extend membership.

Disallowed days

Disallowed days are recorded in certain circumstances when a member receives no pay.

Disallowed days should be recorded where there has been an unauthorised period of absence where pay has been withheld for example due to strike action, or where a member takes a period of sick leave which is unpaid.

 

No pension contributions can be collected for these unpaid periods.

 

It is the responsibility of the employer to calculate the amount of pay lost. NHS employers have published guidance in respect of strike days; entitled ‘Strike action and deduction of pay’ which is available on their website at www.nhsemployers.org.

 

The employer should also determine the number of days the lost pay relates to and notify these to NHS Pensions as disallowed days so the period does not count as membership for calculating benefits and is not included when calculating pensionable pay periods.

 

Where a member is absent for a period of less than a day contributions should not be deducted, and for part timers hours should not be recorded, but a disallowed day can only.

Calculating membership

Read the following factsheets for information about qualifying membership, calendar length membership and examples showing how to calculate reckonable membership.

Calculating membership (PDF: 177KB)

Part time membership FAQs (PDF: 149KB)

Constructed values (PDF: 99.7KB)