The NHS Pension Scheme is a defined benefit occupational pension scheme. It’s open to all NHS employees and employees of other approved organisations.
Pension benefits are based on earnings and how long a member has been in the Scheme. Backed by the Exchequer, the NHS Pension Scheme offers the security of a guaranteed income in every year of retirement for all members, on some of the most generous terms available from a pension scheme. Benefits are not affected by market conditions or falls in the value of investments.
The Scheme plays a valuable role in the recruitment and retention of NHS staff.
As of 31 March 2023, the Scheme had:
- 1.8 million members actively contributing
- over 750,000 deferred members
- 1.1 million pensioner members receiving their pension benefits
The Scheme
The regulations governing the Scheme are set by the Department of Health and Social Care.
There are 2 NHS Pension Schemes, the 1995/2008 Scheme and the 2015 Scheme.
The 1995/2008 Scheme provides pensions for officer members based on final salary, whilst a career average revalued earnings (CARE) arrangement is in place for GPs and dental practitioners.
The 2015 Scheme provides pensions for all members calculated on a career average revalued earnings (CARE) basis. From 1 April 2022, all active members of the NHS Pension Scheme are members of the 2015 Scheme.
Members may have service in more than one part of the Scheme.
The Scheme receives contributions from employers and employees to cover the cost of pensions and other benefits. Contribution rates are set by the Scheme’s Actuary and approved by the Secretary of State for Health and Social Care.
Our role as administrator of the Scheme
We administer the NHS Pension Scheme on behalf of the Department of Health and Social Care in England and Wales.
The administration of the Scheme includes the calculation of benefits, collection of contributions from employers, maintenance of member records, and payment of benefits.
To support us, NHS employers are required to comply with Scheme regulations and explain the Scheme to their employees. They also submit data to us, and a significant number of employers calculate pensions benefit estimates for their employees.
The NHS Pension Scheme is one of the largest centrally administered public sector schemes in Europe.
In 2023/2024 we administered:
- a total annual income of £16.7 billion
- total payments of £16.0 billion
- an average of 179,726 transactions processed per month
Contributions made by employers and employees to the Scheme meet the cost of pensions and benefits for members. The cost of administrating the Scheme is covered by a levy paid by employers of 0.08% of pensionable pay for their staff who are members of the Scheme.
Additional services we administer
As well as the NHS Pension Scheme, our retirement services colleagues also administer:
- The Pensions Annual Allowance Charge Compensation Scheme 2019/20 on behalf of NHS England and the Welsh Government - find more information on the NHS England website
- The NHS and Social Care Coronavirus Life Assurance Scheme 2020 - find more information on our Coronavirus Life Assurance Scheme 2020 page
- The Injury Benefits Scheme which covers NHS workers with injuries or diseases caused through their employment before 31 March 2013 - find more information on our Injury Benefit Scheme pages.
NHS Pension Board
The NHS Pension Board provides scrutiny and assurance of the administration of the NHS Pension Scheme. It's their role to hold the Scheme’s administrator to account for administration of the NHS Pension Schemes - both the new 2015 Scheme and the old Scheme consisting of the 1995 and 2008 Sections.
Find out more information about the NHS Pension Board and their responsibilities on the NHS Pension Board website.
Support for employers
NHS Pensions provides support services for NHS employers. The services help employers to administer the scheme effectively and correctly for their staff. As part of this support, the Stakeholder Engagement Team:
- deliver training
- provide regular updates
- host regional special interest groups
- attend regional group meetings
Accessing support and guidance
Support and guidance for members, employers and pensioners can be found on our online hubs. These contain relevant forms and information on topics including pension contributions, tax considerations, preparation for retirement, changes to circumstances, and any other important news and updates about the NHS Pension Scheme.