NHS Pension and Final Salary 1995

dibdabable

HI All. Just wanted to check something my oh will be retiring from the NHS in June next year 2015. He is in the 1995 Section so will have his Pension worked out by his Final Salary. In April of this year he will be changing his shifts to include nights and weekends. This will make a difference to his salary. Will these enhancements/bonuses be included?

Is pensionable pay simply another way of saying the pay on which his pension is worked out, in his case his final salary?

Also is the pension based on his gross earnings?

Many thanks for your help

xylophone

http://www.nhsbsa.nhs.uk/TRS/pensionsinfo.aspx

"Pay
In a ‘final salary’ pension scheme such as the NHS Pension Scheme your benefits are calculated when you retire using your pay at, or near, retirement. In the NHS Pension Scheme we call your final salary your ‘Final Year’s Pensionable Pay’ in the 1995 Section and ‘Reckonable Pay’ in the 2008 Section. The pay we use is worked out differently in each of the two sections. Your pensionable pay is likely to change between now and when you leave the Scheme so the actual figures used at retirement will be different. When you leave or retire from the Scheme we will calculate your final salary according to the Regulations for the section you are a member of.. Further information can be found in the NHS Pension Scheme Guide.
Please note that the pay we have used to calculate your NHS pension benefits may be different to the actual pay you have received as in some instances not all allowances and payments are pensionable. In addition if you work part time we will have used your full-time equivalent pay."

dibdabable

Thanks. Okaty so I guess that leaves two questions remaining are enhancements/bonuses included (these will form of his week on week shift patterns and the second question, is the Pensionable pay based on the gross earnings?

bll78

I thought the changes brought in a few years ago meant whether you were on 1995, or 2005 your pension up until that point was classed on final pay, but all payments after that point are actuals, so any difference it did make would only be for 1 years contributions not make his whole pension based on the increased amount.
Actually just looked it up and it kick in in 2015 and then there's some protection so he may not be effected.

dibdabable

Yes those won't kick in until 2015 and they had the choice several years ago to opt in or out of the 1995 and 2008 scheme. The way things are worked out therefore will remain unchanged for him.

dibdabable

Hoping someone might be able to answer my two remaining questions in conjuction with my original post which are; are enhancements/bonuses included (these will form of his week on week shift patterns and the second question, is the Pensionable pay based on the gross earnings?

xylophone

Hoping someone might be able to answer my two remaining questions in conjuction with my original post which are; are enhancements/bonuses included (these will form of his week on week shift patterns and the second question, is the Pensionable pay based on the gross earnings?

Have you checked the link in my post above? There is a link within it to the NHS Pension Scheme Guide which may well answer all your queries?

dibdabable

Yes thanks I had actually read that already but it's not specific enough, I've sent an enquiry on the website so hopefully will get an answer there, thanks again.

purdyoaten

dibdabable wrote: »

Yes thanks I had actually read that already but it's not specific enough, I've sent an enquiry on the website so hopefully will get an answer there, thanks again.

Overtime is pensionable pay while the total hours remain below the full time hours for the job. If you normally work 35 hours and do 10 hours overtimeat the normal rate of pay, only 2.5 hours of the overtime will be pensionable.

Bonuses are not pensionable.


Q Do we include the salary for the extra hours worked?

A If the hours are paid at the basic rate of pay, and not at overtime rate, they can be included up to a maximum of whole time.

dibdabable

purdyoaten wrote: »

Overtime is pensionable pay while the total hours remain below the full time hours for the job. If you normally work 35 hours and do 10 hours overtimeat the normal rate of pay, only 2.5 hours of the overtime will be pensionable.

Bonuses are not pensionable.


Q Do we include the salary for the extra hours worked?

A If the hours are paid at the basic rate of pay, and not at overtime rate, they can be included up to a maximum of whole time.

Thanks. Sorry still doesn't seem clear to me. So if he got time and a third for unsocial hours as part of his week to week shift pattern that would be based on his basic pay plus a third, so would that be included or is that considered a bonus. It's not overtime because he still works 150 hours a month.

Just found this which is just what I needed thought I'd post in case it helps anyone else.http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/How_to_Calculate_Total_Pensionable_Pay_V3.pdf