Working out employer contribution NHS pension

Fuzzybear112

Hi, new user so go easy. I'm trying to get my head around some aspects of the NHS pension to try and work out AA and potential for tapering, so would be very grateful for input from anyone with knowledge of that scheme. I'm trying to calculate all the relevant parameters

I am an NHS employee, earning £101,500 this current tax year (of which I think £71288 is pensionable). Every month I pay £860 into the NHS pension scheme (2015 section). I think the employers contribution at this level is 13.5%?

Is it a simple matter of taking my contributions for the year (£860 x 12) and adding 13.5% onto that to obtain my total pension "growth" for the year (i.e. £11,713.20)?

NoMore

No DB pension are calculated differently for AA purposes, as there is no pot. Its not about how much has been contributed but how much your benefits have grown since last year.

Ask your pension admin for your Pension Input amount for AA calculation for this year.

Triumph13

Take the amount of accrued pension per annum at the end of the tax year. Deduct from this the amount accrued at the end of last tax year, increased by last September's CPI. Multiply the result by 16. Obvious really.

Flugelhorn

the employers contribution is higher than that and as the others have said doesn't have significant effect on the AA calculations - this is more related to CPI etc

hyubh

Flugelhorn wrote: »

the employers contribution is higher than that and as the others have said doesn't have significant effect on the AA calculations

It doesn't have any effect, ditto employee contributions...

tibbles209

The NHS pension is a defined benefit pension. This means that, instead of building up a 'pot' of money, you are buying a promise (backed by the government) to pay you an annual pension every year from retirement until death. Every year you accumulate 1/54th of your pensionable earnings as an annual pension from your normal retirement age. The employee contribution is just what it costs you to be a member of the scheme, it does not actually directly affect the size of your pension; that is determined rather by your pensionable earnings.
Forget about the employer contribution percentage, unless you are a GP partner (and thus also pay the employer contribution) that does not affect you.

The NHS pension is brilliant value, keep contributing to it.

Calculating annual allowance is complicated, I'm getting a bit confused trying to figure it out but I found this handy guide;

https://www.nhsbsa.nhs.uk/sites/default/files/2018-09/Annual%20Allowance%20pension%20savings%20statement%20guide-20180809-%28V1%29.pdf

TARDIS

Calculating your AA liability yourself is near on impossible for the NHS pension.

You can request an on demand pension statement: http://https://www.nhsbsa.nhs.uk/sites/default/files/2018-10/Annual%20Allowance%20Pension%20Savings%20Statement%20FAQ%2009-2018%20V4.pdf

It takes 3 months to get the paper statement, but you can phone them up and they will give you the figures over the phone if you need them sooner.

If you're a doctor join doctors.net and read the pension forum there as there's more specific information and links to a AA liability spreadsheet if you're a consultant.