In this latest edition of the NHS Pension Scheme Learning Zone we explore who pays for the NHS Pension Scheme and how much?
Basically, the cost of providing your NHS Scheme benefits is shared between your employer (which itself is paid for by the tax payer) and yourself (as a member).
As a scheme member you make a contribution to the cost of the NHS Pension Scheme benefits based on your pensionable pay. The higher your pensionable pay, the higher your contribution is. The Scheme employer then pays the difference.
The current member rates of contribution are based on earnings as follows:
- Up to £15,431: 5%
- Between £15,432 and £21,477: 5.6%
- Between £21,478 and £26,823: 7.1%
- Between £26,824 and £49,472: 9.3%
- Between £49,473 and £70,630: 12.5%
- Between £70,631 and £111,376: 13.5%
- Over £111,377: 14.5%
The Scheme Employer rate is currently 14%.
Protection of Pay
If your pay is reduced through no fault of your own - it is possible to protect your higher rate of pay for pension purposes. Important - you must apply for this protection within 3 months of your pay reducing.