Question 1

What are the three NHS pension schemes?

Accepted Answer

The NHS Pension Scheme has three sections: the 1995 Section (final salary, 1/80 accrual, normal pension age 60, with an automatic 3/80 lump sum); the 2008 Section (final salary, 1/60 accrual, normal pension age 65); and the 2015 Scheme (career average revalued earnings, 1/54 accrual, normal pension age equal to state pension age). Most current NHS staff are in the 2015 scheme. Anyone with service before 2015 may have benefits in one or more of the legacy schemes.

Question 2

How is the NHS 2015 pension calculated?

Accepted Answer

The 2015 scheme is a Career Average Revalued Earnings (CARE) scheme. Each year you accrue 1/54 of your pensionable pay for that year. Each year's accrual is then revalued annually by CPI + 1.5% while you remain an active member. Your final pension is the sum of all your revalued accruals. So if you earn £30,000 in year one, you accrue £555.56 of annual pension that then grows by CPI + 1.5% each subsequent year you stay in the scheme.

Question 3

What is the McCloud remedy in the NHS pension scheme?

Accepted Answer

The McCloud judgement (2018) ruled that the 2015 NHS pension reforms unlawfully discriminated against younger members. As a remedy, anyone who was an active NHS pension member on both 31 March 2012 and 1 April 2015 has a one-time choice at retirement about whether to be treated as being in their legacy scheme (1995 or 2008) or the 2015 scheme for the period 1 April 2015 to 31 March 2022. The choice is highly individual and depends on your full service history.

Question 4

Can I take my NHS 1995 pension at 60 and keep working?

Accepted Answer

Yes — NHS 1995 Section members can claim their 1995 benefits at the scheme's normal pension age of 60 while continuing to work and accrue benefits in the 2015 scheme. This is called partial retirement or 'retire and return'. The rules around this changed in October 2023 to give members more flexibility. Check with NHSBSA for the latest details.

Question 5

Should I transfer my NHS pension out to a SIPP?

Accepted Answer

Almost certainly not. The NHS Pension Scheme is one of the most generous defined benefit schemes in the UK. Transferring out means giving up a guaranteed inflation-linked income for life in exchange for a pot of money you have to manage yourself, with no guarantees. UK regulators presume that DB-to-DC transfers are not in members' best interests. Transfers above £30,000 legally require advice from a regulated pension transfer specialist. We do not provide transfer advice.

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