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Notional Whole-Time (NWT) Pensionable Pay and supplementary pays

We have received a number of enquiries from employers seeking clarification when calculating Notional Whole-Time (NWT) pensionable pay with supplementary payments.

Information on how to calculate the Notional Whole Time Total Pensionable Pay is included in our Notional Whole Time Pensionable Pay factsheet in the Pay and Contributions page of the Employer Hub.

There is a possibility of a discrepancy in the whole-time equivalent calculation that occurs when setting the tiered rate for a member compared to the calculation at retirement.

The Department of Health & Social Care is aware of the possible imbalance between the approaches to obtain the tiered contribution rate and that for working out pension benefits.

Employers must not change their approach when working out the notional whole-time for those claiming pension benefits.

Working out the NWT Pensionable pay for benefits

When calculating the NWT pensionable pay for estimates or awards purposes, employers should include the supplementary payments in the ‘Actual Pay in pensionable pay period.

The NWT must continue to be calculated using the method set out in the factsheets on NHS Pensions website.

Actual Pay x  (Annual Standard Hours / Actual Hours Worked)

Working out the Tiered contribution rate

When the employer is calculating the NWT pensionable pay to determine the tiered contribution rate, employers should use the member’s pay without the supplementary payment in the ‘Actual Pay” in pensionable pay period. This will ensure that both PT and WT members pay the same rate of contributions for the same type of employment.

NHS Pensions systems are unable to calculate the NWT pensionable pay in this way. However, we know that ESR calculates and splits out the payments correctly.