Having, over the last three weeks, given an overview of the existing NHS Pension Scheme arrangements. Our attention now turns to the new 2015 NHS Pension Scheme.
All Public Sector Pensions, including the NHS Pension Scheme, are changing in April 2015, to reflect the recommendations of an independent commission into the affordability and sustainability of public sector pensions.
The main features of the new NHS Pension Scheme are as follows:
- The NHS Pension Scheme will become a Career Average Revalued Earnings scheme (CARE). This means that your final pension benefits will be based on your earnings throughout your career - rather than your final salary.
- The rate that your pension builds up will be 1/54th of each year's pensionable earnings and there will be no limit on how much pensionable service you can build up.
- The revaluation of each year's benefits for those active members building up their pension rights, will be at the rate of CPI + 1.5% (Consumer Price Index).
- The Normal Pension Age for this new scheme will be linked to your State Pension Age.
- Once this new scheme comes into payment, it will increase with inflation using CPI.