1. What is the NHS 2015 Pension Scheme?

The NHS 2015 Pension Scheme is a career average revalued earnings (CARE) scheme that provides retirement benefits for NHS staff in the UK. Each year, 1/54th of your pensionable earnings is added to your pension pot.

2. How Does the Calculator Work?

The calculator uses the NHS 2015 pension formula:

Where:

• \( PE \) — Pensionable earnings each year (GBP)
• \( \frac{1}{54} \) — Annual accrual rate
• \( \sum \) — Summation over all years of service

Explanation: For each year of NHS service, you accumulate 1/54th of your pensionable earnings as annual pension. The total pension is the sum of all annual accruals.

3. Importance of Pension Calculation

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

4. Using the Calculator

Tips: Enter your annual pensionable earnings in GBP. The calculator will compute your annual pension accrual for that year. For total pension, sum the results for all years of service.

5. Frequently Asked Questions (FAQ)

Q1: What counts as pensionable earnings?
A: Pensionable earnings include basic salary, plus any regular additional payments like London weighting, but typically exclude overtime and one-off payments.

Q2: How is the pension increased over time?
A: Each year's pension accrual is revalued annually in line with CPI inflation plus 1.5% until retirement.

Q3: What is the normal retirement age?
A: The normal pension age is equal to your state pension age, or age 65 if that is higher.

Q4: Can I take my pension early?
A: Yes, but early retirement typically results in actuarial reduction to account for longer payment period.

Q5: Are death benefits included?
A: The scheme provides life assurance and dependants' pensions, which are separate from the annual pension calculation.