NHS CARE annual pension CPI increase

Random47

I asked the question on LPGS and wanted to confirm position with NHS CARE pension contributions as my partner is NHS worker.

When still an active member does the 2015 CARE portion of pension pot value get CPI rate applied in April ?

(Partner has 1995 FS pension and did not opt into 2008 CARE when offered but was then put onto 2015 CARE along with the majority of other NHS staff)

Random47

Found the answer in NHS 2015 CARE guide

Annual revaluation
Your pension earned each year will be increased each year by a rate, known as ‘revaluation’, in the period before you retire or leave. In this Scheme the revaluation rate is determined by Treasury Orders plus 1.5% each year. 

So i am assuming the Treasury Orders currently used are the previous years September CPI rates (confirmation from those with knowledge if this assumption is correct ?)

Interesting that NHS get TO +1.5% and police get +1.25% on their CARE pension. I note LPGS only get CPI with no addition (hmmmm) albeit the LPGS get better accrual rate of 1/49th. 

Dazed_and_C0nfused

The April 2022 increase should be 4.6% (3.1 + 1.5).

Accrual rates, contribution rates and inflation proofing differ from scheme to scheme.

Alpha (civil service) has a high accrual (1/43rd) and generally lower contribution rates when compared to the NHS (1/54th) but NHS has better inflation proofing.

NedS

Does anyone know how the NHS 1995 Final Salary pension increases in deferment. Is it uncapped CPI or is there any additional increment for that?

hyubh

NedS said:

Does anyone know how the NHS 1995 Final Salary pension increases in deferment. Is it uncapped CPI or is there any additional increment for that?

Public sector pensions in deferment and in payment get uncapped CPI with an effective floor of zero (i.e. if inflation goes negative, the pension doesn't decrease) - it's the same measure as protected payments under the new state pension. This is unaffected by FS vs. CARE.

NedS

hyubh said:

NedS said:

Does anyone know how the NHS 1995 Final Salary pension increases in deferment. Is it uncapped CPI or is there any additional increment for that?

Public sector pensions in deferment and in payment get uncapped CPI with an effective floor of zero (i.e. if inflation goes negative, the pension doesn't decrease) - it's the same measure as protected payments under the new state pension. This is unaffected by FS vs. CARE.

Which is what I thought, except above it is stated the NHS 2015 CARE scheme gets CPI + 1.5%, hence my question. Is this specific to NHS 2015 CARE, or does it apply to all NHS pension schemes?

Silvertabby

NedS said:

hyubh said:

NedS said:

Does anyone know how the NHS 1995 Final Salary pension increases in deferment. Is it uncapped CPI or is there any additional increment for that?

Public sector pensions in deferment and in payment get uncapped CPI with an effective floor of zero (i.e. if inflation goes negative, the pension doesn't decrease) - it's the same measure as protected payments under the new state pension. This is unaffected by FS vs. CARE.

Which is what I thought, except above it is stated the NHS 2015 CARE scheme gets CPI + 1.5%, hence my question. Is this specific to NHS 2015 CARE, or does it apply to all NHS pension schemes?

The +1.5% only applies to the CARE element of 'live' records, not those in deferment.