1. What is the NHS 2015 Pension?

The NHS 2015 Pension Scheme is a career average revalued earnings (CARE) scheme that calculates pension as 1/54th of pensionable earnings each year, with the amount revalued annually.

2. How Does the Calculator Work?

The calculator uses the NHS 2015 pension formula:

Where:

• \( Pension \) — Annual pension amount (GBP)
• \( PE \) — Pensionable earnings each year (GBP)
• \( \frac{1}{54} \) — Accrual rate for each year of service

Explanation: Each year, you accrue 1/54th of your pensionable earnings as pension. The total pension is the sum of all annual accruals, revalued each year.

3. Importance of Pension Calculation

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

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, you would need to sum accruals from all years of service.

5. Frequently Asked Questions (FAQ)

Q1: What is included in pensionable earnings?
A: Pensionable earnings typically include basic pay, plus any regular additional hours, London weighting, and other pensionable allowances.

Q2: How is the pension revalued each year?
A: Each year's pension accrual is revalued in line with CPI (Consumer Prices Index) plus 1.5% to maintain its value against inflation.

Q3: Can I take my pension early?
A: The normal pension age is linked to your state pension age, but you may be able to take your pension earlier with actuarial reduction.

Q4: What happens if I work part-time?
A: Your pensionable earnings are pro-rated for part-time work, but you still accrue pension at the same rate of 1/54th of your actual pensionable pay.

Q5: Are there contribution rates?
A: Yes, contribution rates are tiered based on your pensionable earnings, ranging from 5.0% to 14.5% of your pensionable pay.