1. What is the NHS 1995 Section Pension?

The NHS 1995 Section Pension is a defined benefit pension scheme for NHS staff who joined before April 2008. It provides a pension based on pensionable earnings and years of service, calculated as 1/80th of pensionable earnings for each year of service.

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 per year of service

Explanation: The formula calculates the annual pension entitlement by multiplying pensionable earnings by 1/80th for each year of NHS service.

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 retirement timing.

4. Using the Calculator

Tips: Enter pensionable earnings in GBP and years of service in years. Pensionable earnings should reflect your final salary or career average earnings, depending on your scheme details.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for the NHS 1995 Section Pension?
A: NHS staff who joined the pension scheme before 1st April 2008 and remained in the 1995 section.

Q2: What is included in pensionable earnings?
A: Basic salary plus any regular additional payments, but typically excludes overtime and one-off payments.

Q3: Can years of service be purchased?
A: Yes, additional pensionable service can often be purchased through Additional Pension Contributions (APCs).

Q4: What is the normal retirement age?
A: The normal retirement age for the 1995 section is 60 for most members.

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