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How does the 2015 NHS pension work?

How does the 2015 NHS pension work?

In a CARE scheme your pension is based on your pensionable pay throughout your career. The pension you earn each year is based on actual pensionable pay in that Scheme year and is increased by a method, known as revaluation, each year up to retirement or leaving.

What is the employer’s contribution to NHS pension?

Employer contribution rate arrangements to remain for 2020/2021. The NHS Pension Scheme employer contribution rate increased on 1 April 2019 from 14.3% to 20.6%, plus an employer’s levy of 0.08%.

What is the difference between 1995 and 2015 NHS Pension Scheme?

The 2015 Scheme is different from the 1995/2008 Scheme in two key areas: Pension benefits are linked to Career Average Revalued Earnings ‘CARE’ and not final salary. The normal retirement age is aligned to a member’s state pension age, as opposed to age 60 in the 1995 Section and 65 in the 2008 Section.

How much NHS pension contributions do I pay?

20.68 per cent
In practical terms, this means employers will pay 20.68 per cent of pensionable pay. For the 2019-20, 2020-21, 2021-22 and 2022-23 scheme years, employers are responsible for paying 14.38 per cent of contributions, with the remaining 6.3 per cent being funded centrally.

How is my 2015 NHS pension calculated?

Your annual pension is equal to one-fifty fourth of your pensionable earnings for each Scheme year or part year of membership. The calculation is as follows: × pensionable earnings for the Scheme year*. *This will be subject to revaluation annually on 1 April each year.

Is the NHS pension changing in 2022?

From 1 April 2022, all active members regardless of age will be members of the 2015 NHS Pension Scheme. This change means that active members of the 1995/2008 Scheme will automatically move to the 2015 Scheme and start building up benefits in this Scheme.

Can I retire at 60 with NHS pension?

You can claim these benefits at different times. You can start receiving your 1995 Section benefits without any reductions from age 60 (or 55 if you’re a Special Class member). You can claim your 2008 Section benefits from age 65, and your 2015 Scheme benefits from age 65 or your state pension age, whichever is later.

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