Scheme membership built up from 1 April 2008 is no longer subject to the pensionable earning cap.
However, those that were subject to the cap in respect of some or all of their membership before that date, who are buying added years or unreduced lump sum under an agreement starting before 1 April 2008, will have the additional contributions only (i.e. ‘AVCs’) assessed by reference to a notional earnings cap.
Where it is relevant the notional cap must be applied even when actual NHS income did not exceed the cap before 1 April 2008.
Members who are affected by the notional cap are, in general:
- those who joined the NHS Pension Scheme for the first time on or after the 1 June 1989, or
- those who joined before then but have had a break in Scheme membership of 12 months or more that ended on or after that date.
Agreements (i.e. contracts) that started on or after 1 April 2008 are not subject to a cap. Contributions in respect of the Additional Pension are not subject to any cap.
More information about the earnings cap, including an explanation of the different assessments for Officer members and Practitioner / non-GP Providers can be found in the earnings cap factsheet on our website.