NHS Pension increases

Pat38493

Can I ask does anyone know if NHS pensioners get a letter or some kind of notification each year telling them what their pension increase and new gross pension payment amount will be?

Andy_L

"NHS pensions are subject to an annual increase which is based upon the consumer price index (CPI) as laid down by HM Treasury every year. 

The increase will be applied to your pension at the beginning of April in the new tax year.

We are not able to advise the Pension Increase value before April. 

You’ll receive an ‘advice of payment’, detailing your new rate and percentage increase in your April and May payments."

https://www.nhsbsa.nhs.uk/pensioner-hub/useful-information-pensioners#jumplink1

Pat38493

Andy_L said:

"NHS pensions are subject to an annual increase which is based upon the consumer price index (CPI) as laid down by HM Treasury every year. 

The increase will be applied to your pension at the beginning of April in the new tax year.

We are not able to advise the Pension Increase value before April. 

You’ll receive an ‘advice of payment’, detailing your new rate and percentage increase in your April and May payments."

https://www.nhsbsa.nhs.uk/pensioner-hub/useful-information-pensioners#jumplink1

Thanks - my wife took her NHS 1995 pension at the end of April 2022 - she believes there will be an 11% increase but she will get 11/12 of it.  Does that seem right?

Silverbullet036

CPI I believe for pension purposes is used from September the year before. This will be 10.1% for Aprils increase (this is same as my pension)

Pat38493

Silverbullet036 said:

CPI I believe for pension purposes is used from September the year before. This will be 10.1% for Aprils increase (this is same as my pension)

OK but I guess as she retired on April 30 it would be 11/12 of that so 9.25.

Flugelhorn

Pat38493 said:

Silverbullet036 said:

CPI I believe for pension purposes is used from September the year before. This will be 10.1% for Aprils increase (this is same as my pension)

OK but I guess as she retired on April 30 it would be 11/12 of that so 9.25.

Something like that  - this was from previous years but the cut off date is later in April 

"You may receive a lower percentage increase if pension commenced after 26 April 2021 or no increase if after 26 March 2022. Where your pension commenced after 26 April 2021 you will receive a proportion of the 3.1% increase. You can find more information on this on our website."

page 2 shows how it was worked out a few years back https://www.nhsbsa.nhs.uk/sites/default/files/2022-07/NHS Pensions-Pensions Increase and P60 FAQ-AOC Accessible CD.pdf

also re letter - you tend to get it at the same time as the pension P60 so often late April though one year it was mid May 

Pat38493

Flugelhorn said:

Pat38493 said:

Silverbullet036 said:

CPI I believe for pension purposes is used from September the year before. This will be 10.1% for Aprils increase (this is same as my pension)

OK but I guess as she retired on April 30 it would be 11/12 of that so 9.25.

Something like that  - this was from previous years but the cut off date is later in April 

"You may receive a lower percentage increase if pension commenced after 26 April 2021 or no increase if after 26 March 2022. Where your pension commenced after 26 April 2021 you will receive a proportion of the 3.1% increase. You can find more information on this on our website."

page 2 shows how it was worked out a few years back https://www.nhsbsa.nhs.uk/sites/default/files/2022-07/NHS Pensions-Pensions Increase and P60 FAQ-AOC Accessible CD.pdf

also re letter - you tend to get it at the same time as the pension P60 so often late April though one year it was mid May 

Thank you this is helpful.  Not surprisingly though for the NHS pensions it doesn't make sense and is contradictory  

Twice in the document it says that this year's increase is 1.7%.

However, in the table following, even for people who retired prior to 21st April 2019 (in the example), it gives the % as 1.0170 which flat out contradicts what it says in the paragraphs above!  Unless the numbers in the table are a multiplier, but even that wouldn't make sense as the first on should be 1.000 shouldn't it?

Flugelhorn

1.017 is the multiplier (shouldn't really be labelled as "increase" -more "new payment" ) - the top one is the people who have been in the scheme all year from April 19-April 20 so got the full 1.7%  and hence multiplier of 1.017

Pat38493

Flugelhorn said:

1.017 is the multiplier (shouldn't really be labelled as "increase" -more "new payment" ) - the top one is the people who have been in the scheme all year from April 19-April 20 so got the full 1.7%  and hence multiplier of 1.017

Ah ok now I see.  I take it back NHS pensions are wonderful! (although the chart could probably be labelled a bit better).

Flugelhorn

Pat38493 said:

Flugelhorn said:

1.017 is the multiplier (shouldn't really be labelled as "increase" -more "new payment" ) - the top one is the people who have been in the scheme all year from April 19-April 20 so got the full 1.7%  and hence multiplier of 1.017

Ah ok now I see.  I take it back NHS pensions are wonderful! (although the chart could probably be labelled a bit better).

sometimes! the problem is that they present things differently every year, I can't find an up to date version of that document - presume there is one or they have bothered for the last couple of years 

I have had great  conversations with them sometimes,  they once increased my pension without explaining why (I had asked them if they were going to a few months before but they denied I was eligible and then it happened - the letter read "we have increased your pension because of."    yes just a full stop) - bit of a rant on e-mail along the lines of OK so where's the extra lump sum then???? .

"In your bank account " was the answer - opps awks, should have checked 

molerat

And you need to remember the first payment of the new year will be part old and part new rates.  I have tried to figure out my April payment many times and never managed to get it right, the other 11 are spot on.