NHS Increased Employee Contributions effective 1 April 2012
The Department of Health announced on 8 December 2011 changes to the
level of contributions made by NHS Pension Scheme members towards their
pension which will come into effect on 1 April 2012. Each of the public service
pension schemes undertook a consultation on their proposals for member
contribution increases from April 2012. These consultations followed the
Government's announcement in last year's Spending Review that public
sector workers would be asked to contribute an average of 3.2 per cent more
for their pensions, phased in over three years from April 2012. The
consultations only related to delivering savings in the first year.
New tiered contribution structure
The changes will come into effect on 1 April 2012. The details of the new
arrangements are set out in the table below and are based on the NHS
Employers response to the Department of Health’s NHS Pension Scheme
consultation.
Full-time
2010/11 pay
Up to £15,000
£15,001 to
£21,175
£21,176 to
£26,557
£26,558 to
£48,982
£48,983 to
£69,931
£69,932 to
£110,273
Over
£110,273
2010/11
contribution
(gross)
5.0%
5.0%
2012/13
contribution
(gross)
5%
5%
6.5%
6.5%
0%
6.5%
8.0%
1.5%
6.5%
8.9%
2.4%
7.5%
9.9%
2.4%
8.5%
10.9%
2.4%
Contribution
increase (gross)
0%
0%
The Department has prepared draft NHS Pension Scheme regulations which
will implement the changes to contribution rates. A copy of the draft
Regulations are available on the NHS Pensions website. Further information
can be found in the Governments response to the proposals. The change
ensures that those staff on lower salaries, who provide a significant amount of
patient contact, are protected from further costs in the second year of a period
of pay restraint. A full copy of the NHS Employers response is available here.