NHS Pension Calculation

Brighty75

Hi

Any experts in NHS pensions and calculating what the payment should be based on the yearly percentage increases?

In the process of tracking down all my wifes old pensions. She worked as an NHS carer from end of ’98 to beginning of ’05, then private sector care roles since. Contacted NHS pensions and we now have access to her pension hub account. Had no clue how NHS pensions worked, so was pleasantly surprised to find out it’s a DB type and that it’s payable from 60 rather than the usual 65/67. Also that it can be taken early due to ill health, with no reduction, which may be relevant to her, as she has been off work for the last year due to ill health at just 47 and now receives PIP and contribution based ESA, currently waiting for decision on what ESA group.

It states her pensionable pay on leaving in Jan 2005 was £15,425

It states she has 6yrs 25 days in

It states she is in the 1995 Scheme

It states her current pension would be £1948, but I get a higher number based on the yearly percentage increases since 2005 of £2163

By multiplying £15,425 by 6 + 25/365 80ths I get £1170

Then the following yearly percentage increases (I’ve assumed she’ll get the 2005 March increase even though she only left in Jan)

		£1,170
2005	3.1%	£1,206
2006	2.7%	£1,239
2007	3.6%	£1,283
2008	3.9%	£1,333
2009	5.0%	£1,400
2010	0.0%	£1,400
2011	3.1%	£1,444
2012	5.2%	£1,519
2013	2.2%	£1,552
2014	2.7%	£1,594
2015	1.2%	£1,613
2016	0.0%	£1,613
2017	1.0%	£1,629
2018	3.0%	£1,678
2019	2.4%	£1,718
2020	1.7%	£1,748
2021	0.5%	£1,756
2022	3.1%	£1,811
2023	10.1%	£1,994
2024	6.7%	£2,127
2025	1.7%	£2,163

 

Do my sums look correct, or have i misunderstood how it should work? If so, any idea why the amount shown in her account is lower? Any way of finding out how they calculated it?

Thankyou

Brighty

hugheskevi

Right approach, but there are published tables that take account of leaving close to the end of year. They are at this link.

They show that for someone leaving between 27/12/2004 and 26/01/05 the increase up to and including the April 2025 increase would be 80.74% (your calculation gives 85% so is a small overestimate).

Adding 80.74% to your £1,170 calculation still is more than the figure you say is shown as her current pension in the pension hub account (£1,948). However, increase by 80.74% and then remove the last 2 increases (1.7% and 6.7%) and the result is £1,948 so perhaps the figure is the amount due after the April 2023 increase rather than the latest figure?