NHS Shared Business Services would like to bring to your attention a number of important updates relating to the NHS Pensions scheme. Please see the below updates.
As you may be aware the consultation outcome for the McCloud judgement has been announced therefore, I would like to signpost you to the online information.
Pension Scheme members affected will be given a choice at retirement. The choice will be between moving 2015 Pension benefits back to the 1995/2008 Schemes or remaining in the 2015 Scheme. The government intends to have processes in place to support members making a choice by 1 October 2023.
On top of this the 1995/2008 scheme will be closing on 31 March 2022 with all members moving to the reformed 2015 Scheme on 1 April 2022.
I would appreciate if you can share this information with your employees via your normal communication methods.
As it stands there is no further information available and NHS Pensions will be providing further updates in the future.
|New Scheme Consultation|
There is a new scheme consultation in progress that covers an equalising of Survivor Benefits and Final Pay Controls.
Final Pay Controls apply to members who have retired from the 1995 section of the scheme where pensionable pay in the last three years has exceeded the allowable amount, which in turn causes a charge. The proposal is to increase the allowable amount percentages to 7%, so it highlights 50% less cases where charges apply and to add further exemptions to the current list.
Please see the below link that provides the detail and enables you to respond if you feel its necessary. Consultation closes 8 April 2021
|Scheme Flexibilities Consultation|
There was a consultation last year around making the scheme more flexible for staff managing their lifetime and annual allowance. It has been announced that the Department of Health and Social Care will not take this forward, as the annual allowance tapering threshold has been increased by the government this is no longer required.
Further information can be found on the below link:
|Exit Payments Cap Scrapped|
In November, the government announced a £95k cap on Exit payments, this has now been scrapped due to unintended consequences. More information can be found on the link below.
We are currently checking any redundancy quotes we have issued to you recently and amend figures if the cap was applied.
If you have any queries relating to this communication, then please get in touch by emailing: