Pensions

UPDATE ON PENSIONS LATEST NEWS

OVER 50 PENSION CHOICE

There are 120 people who should have some weeks ago now received their individual pension choice packs but as yet have not confirmed with the trust either via email or post that they have. The trust is trying hard to make sure that these people have their packs enabling them to make their important choice as the November deadline get ever closer.

So if you are over 50 (as of 01/10/2009) and in the pension scheme and haven’t received a pack or delay letter please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or you have yet to confirm that you have received your pack please do so ASAP by returning the receipt or via email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it please

NHS Pension Choice Exercise

Anyone over the age of 50 who is eligible to make their Pension Choice will receive either their Choice Statements or a statement delay letter between 12th and 19th July.

It is important that you acknowledge receipt of either your pack or your delay letter so please return the form which is enclosed with your statement or letter in the SAE provided or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

If you do not receive a statement or a delay letter and believe that you should have had one please contact the HR Services Team or a member of staff side.

If you would like to find out more information about the NHS Pension Choice Exercise, visit them here or contact the help line on 0300 1231601.

As a UNISON Branch, we are fortunate enough to have our own Pensions Officer to offer advice and support to our members. Steve Beckley is the Pensions Officer and can be contacted on This e-mail address is being protected from spambots. You need JavaScript enabled to view it

The NHS Pension Scheme dates back to 1948. The scheme is statutory (scheme rules are enshrined in law, as opposed to a trust deed) and occupational (connected to NHS employment). The NHS Pension Scheme is a voluntary scheme in which members can join at any time during their employment within the NHS. The normal retirement age is 60 for both men and women although there are provisions for those with special status to retire from age 55 without a reduction in pension benefits.

Currently, the scheme is a contracted-out, final salary and therefore benefits built up are based on the number of contributory years in the scheme and salary at or near retirement. The cost of contributing to the scheme is a proportion of salary. If tax and national insurance contributions are ignored, the contribution rate is a standard 6% for most employees, 5% for those classed as "manual" staff.

The NHS Pension Scheme benefits are built up in addition to state pension. Therefore at retirement the benefits gained are paid on top of any basic state pension built up. A member of the NHS Pension Scheme pays lower national insurance contributions as the scheme is contracted out of the state second pension (formerly SERPS) and tax relief is granted on contributions. Therefore the contribution rate for staff is about 1.4% lower than 6/5% quoted above. Contributions are deducted from salary by employers and held in a "notional fund". There is a uniform contribution rate for employers.

The rules of the scheme are operated under statutory regulations which require an Act of Parliament for any changes to be made. Consequently, the scheme is considered more secure than schemes set up under trust, but there are no trustees and therefore no discretionary powers to grant benefits that are not contained within the regulations.

The scheme includes provisions for the granting of ill-health benefits. If one is "permanently incapacitated" this means early payment of benefits from age 50 on redundancy or retirement in the efficiency of the service. It also provides for payment to a widow/widowers (of a legally married spouse) in the event of a scheme member's death.

The scheme is administered by the NHS Pensions Agency which is also responsible for the running of the injury-benefit scheme available to all, regardless of membership of the NHSPS.

On April 1 2008 the NHS Pension Scheme was updated with some significant changes. Key features of the Scheme have been retained for those in membership on and immediately before 1 April 2008, including a normal retirement age of 60 and a pension based on final salary. This scheme will continue to be called the NHS Pension Scheme but for ease of identification is referred to as the NHS Pension Scheme (Amended April 2008).

At the same time a brand new scheme was launched for new members joining for the first time on or after April 1 2008. The New NHS Pension Scheme will have a normal retirement age of 65, and greater flexibility around how and when members take their pension.

Members joining for the first time on or after April 1 2008 will only be able to join the New NHS Pension Scheme. This situation is slightly more complicated for people rejoining with previous membership of the NHS Pension Scheme. Further information is available in the factsheet for deferred members available in the members’ library. (Available soon)

Ian McKenna will attempt to answer some of the most frequently asked questions relating to pensions advice.