1. What is the NHS 1995 Pension Scheme?

The NHS 1995 Pension Scheme is a final salary pension scheme for NHS staff in England and Wales. It provides a pension based on your final salary and years of service, offering a secure retirement income.

2. How Does the Calculator Work?

The calculator uses the NHS 1995 pension formula:

Where:

• \( Final\ Salary \) — Your pensionable pay at retirement (GBP)
• \( \frac{1}{80} \) — The accrual rate for each year of service
• \( Years\ of\ Service \) — Total years worked in the NHS scheme

Explanation: For each year of service, you accrue 1/80th of your final salary as annual pension. The total pension is the sum of all years of service.

3. Importance of Pension Calculation

Details: Accurate pension calculation helps NHS staff plan for retirement, understand their entitlements, and make informed decisions about their career and retirement timing.

4. Using the Calculator

Tips: Enter your final salary in GBP and total years of NHS service. Final salary should be your pensionable pay at retirement. Years of service can include partial years (e.g., 25.5 years).

5. Frequently Asked Questions (FAQ)

Q1: What counts as final salary?
A: Final salary is typically your pensionable earnings in the 12 months before retirement or the best of the last three years' pensionable pay.

Q2: Can I include part-time service?
A: Yes, part-time service is included but will be pro-rated based on your whole-time equivalent salary.

Q3: Is there a maximum pension?
A: The maximum pension is generally 40 years' service, giving you 40/80ths (half) of your final salary.

Q4: What about the tax-free lump sum?
A: The 1995 scheme automatically provides a tax-free lump sum of 3 times your annual pension in addition to the calculated pension.

Q5: How does this differ from the 2008 and 2015 schemes?
A: The 2008 scheme is also final salary based but with different accrual rates. The 2015 scheme is career average revalued earnings (CARE) based.