Important NHS pension changes come into force in October.
An NHS Pension rise due to be implemented next month will mean most workers will be contributing more into their pension pot.
Following a consultation by the Department of Health and Social Care (DHSC), the new rules will be phased in over two years, with pension rises planned in October 2022 and in 2023.
The changes mean that some NHS staff will have a higher rate and will be required to contribute more to the scheme than they currently do, and some will have a lower rate and will contribute less.
Pension contributions before October 2022
NHS pension contributions are based on a full-time equivalent worker (i.e if you work part-time, pension contribution rates are the same as those who work full-time).
|
Pensionable pay*
|
Contribution rate
|
|
Up to £15,431.99
|
5.00% |
|
£15,432.00 to £21,477.99
|
5.60% |
|
£21,478.00 to £26,823.99
|
7.10% |
|
£26,824.00 to £47,845.99
|
9.30% |
|
£47,846.00 to £70,630.99
|
12.50% |
|
£70,631.00 to £111,376.99
|
13.50% |
|
£111,377.00 and over
|
14.50% |
Pension contributions from October 2022
From October 2022, the amount you pay will be based on your actual annual rate of pay, instead of your whole-time equivalent.
|
Pensionable pay*
|
Contribution rate
|
| Up to £13,246 | 5.10% |
| £13,247 to £16,831 | 5.70% |
| £16,832 to £22,878 | 6.10% |
| £22,879 to £23,948 | 6.80% |
| £23,949 to £28,223 | 7.70% |
| £28,224 to £29,179 | 8.80% |
| £29,180 to £43,805 | 9.80% |
| £43,806 to £49,245 | 10% |
| £49,246 to £56,163 | 11.60% |
| £56,164 to £72,030 | 12.50% |
| £72,031 and above | 13.50% |
Employers’ contribution rate is currently fixed at 20.6% until 31 March 2024, and the payout you receive upon retirement remains unchanged, NHS Employers has confirmed.
Will you be worse off?
Pension scheme enrollment statistics reveal that the majority of NHS staff will see an increase in their pension contributions following the NHS pension rise.
Part-time staff will also likely see a decrease in their overall pension contributions due to the move from a full-time equivalent calculation.
The change comes at a time when staff are opting out of the pension scheme due to the skyrocketing cost of living.
There is a further planned NHS pension rise, but the date is still yet to be confirmed.
