NHS pension - how is the figure for exact pensionable pay calculated?

keiran

This is a particular question on the NHS pension for doctors in the 1995 section.

The pensionable pay figure used for the pension calculation is the one which gives the best pay of the final three years  . In my case it is the final year.

NHS Pensions receives only annual reports per financial year  (1 April - 31 March) from trusts of an individual's pensionable pay and pension contributions.

As that year will cross 2 tax years (unless the person retires on 31 March), NHS pensions will have to apportion the penultimate year's pensionable pay figure  (eg if a person retired on 23 Sep 2024, they could use the full amount reported for the 2024/25 financial year from 1 April 2024 to 23 Sep 2024, but they would have to apportion the 2023/24 financial year to give the figure for 24 Sep 2023 - 31 March 2024)

So the question is, will NHS Pensions use an "average" annualised method, assuming that the pay is uniform every month (from the annual figure they've been sent), or will they use the actual pay earned every month from 24 Sep 2023 (pro rata'ing for 7/30 days in Sep ), and applying the actual pay earned from month to month up to March 2024?

And if it is the latter (which would appear to be the correct and fair method), how would NHS Pensions know these monthly figures, when they say they only get annual reports per financial year?

I hope this makes sense. I've tried all the usual ways of trying to find out (including telephoning/email NHS pensions) without a sensible answer.

It doesn't help that I'm a deferred member with my last records going back 20 years,  and that the old trust has amalgamated.

Flugelhorn

interesting question, not sure of the answer -  and I assume you are an officer rather than a practitioner?   

I had both pensions and while the amount was clear for the practitioner, for the officer I think it was based on the wte salary for the year and hence they must have apportioned it over more than one year, one person at NHSBSA did tell me however  that they went back literally 365 days from the date of leaving to calculate a figure and then went back another 365 days - which rather implies that they did have the monthly figures??

 My last officer job was sessional and hence varied between 1 and 4 days a month from which a wte pensionable pay was calculated - definitely huge variation in the monthly pay. 

SandyShores

Hi, as per the attached its the best of the last 3 years, but the last 12 months normally provides the best.  But have a look on the NHSBSA website for some more detailed info.

keiran

SandyShores said:

Hi, as per the attached its the best of the last 3 years, but the last 12 months normally provides the best.  But have a look on the NHSBSA website for some more detailed info.

Thanks . Of course I've researched this, but my particular question isn't answered anywhere!

Marcon

keiran said:

SandyShores said:

Hi, as per the attached its the best of the last 3 years, but the last 12 months normally provides the best.  But have a look on the NHSBSA website for some more detailed info.

Thanks . Of course I've researched this, but my particular question isn't answered anywhere!

I googled on 'calculating NHS pensionable pay 1995 scheme' and got this, which I think does answer your question: https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/How%20to%20calculate%20Total%20Pensionable%20Pay%20V4%2006.13.pdf

Purplelady65

My understanding is that you give NHSBA the proposed date that you would like to access your pension. They will count back 365 days from that date, then 365 days and another 365 days. Whichever of those 3 years gives you the highest amount of pensionable pay is the year that will be used in the calculation of your pension. 

Bobinyorkshire

Purplelady65 said:

My understanding is that you give NHSBA the proposed date that you would like to access your pension. They will count back 365 days from that date, then 365 days and another 365 days. Whichever of those 3 years gives you the highest amount of pensionable pay is the year that will be used in the calculation of your pension. 

That’s my understanding too. 

One thing I’m not sure about is if you wait until the CPI uplift in April is the whole uplifted sum included in the calculation or just a percentage? If it’s the whole sum presumable waiting until after the CPI increase makes sense