Dear Colleague,
NHS Pension Scheme: Proposed changes to member contributions from 1 April 2022
Please can I draw your attention to the consultation document on the member contribution structure from 1 April 2022.
The NHS Pension Scheme is designed to offer significant value in retirement to people who have chosen to dedicate part, or all, of their careers to serving the public through the NHS.
Backed by the Exchequer, the NHS Pension Scheme offers the security of a guaranteed income in every year of retirement for all its members, on some of the most generous terms available from a pension scheme, in recognition of their service to the NHS and the country.
In 2008, tiered contribution rates were introduced to reflect that higher earners were likely to receive proportionally more benefits than lower earners over the course of their retirement, due in part to their final salary link.
To ensure the cost of the NHS Pension Scheme was fairly distributed and affordable for all members, these tiered contribution rates asked higher earners to pay proportionally more than lower earners to access the valuable benefits of the scheme.
As the NHS Pension Scheme has moved from final salary linked to a career average revalued earnings (CARE) model, all members will build up CARE benefits from 1 April 2022.
This change ensures that the costs and benefits of the scheme are more evenly shared, and will be introduced as part of the McCloud remedy.
The consultation document sets out the changes proposed to the contributions that members pay towards the NHS Pension Scheme, and the rationale for these changes. The consultation document can be found on GOV.uk
They are welcoming responses from all those affected by and interested in the proposals.
Consultation on the amendments runs from Friday 15 October 2021, with comments on the draft Regulations invited by close of business on Friday 7 January 2022.
Responses to consultation should be sent by close of business on Friday 7 January 2022 to:
