1. What is the NHS 1995 Pension Scheme?

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

2. How Does the Calculator Work?

The calculator uses the NHS 1995 pension formula:

Where:

• \( PE \) — Pensionable earnings (GBP)
• \( YS \) — Years of service (years)
• \( \frac{1}{80} \) — Accrual rate (1/80th of pensionable earnings per year of service)

Explanation: For each year of NHS service under the 1995 scheme, you accrue 1/80th of your pensionable earnings as annual pension.

3. Importance of Pension Calculation

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

4. Using the Calculator

Tips: Enter your pensionable earnings in GBP and years of NHS service. Pensionable earnings typically include basic salary plus any regular additional payments.

5. Frequently Asked Questions (FAQ)

Q1: What counts as pensionable earnings?
A: Pensionable earnings include basic salary, London weighting, and other regular allowances. Overtime and one-off payments are usually excluded.

Q2: How is part-time service calculated?
A: Part-time service is calculated pro-rata. For example, 10 years at half-time equals 5 years of pensionable service.

Q3: What is the normal retirement age?
A: The normal retirement age under the 1995 scheme is 60 for most members, or 55 for mental health officers.

Q4: Can I take my pension early?
A: Yes, but with actuarial reduction if taken before normal pension age. Early retirement is possible from age 50 with employer consent.

Q5: Is there a lump sum payment?
A: The 1995 scheme provides an automatic tax-free lump sum of 3 times the annual pension in addition to the annual pension payment.