The proposals in the consultation are to:
- deliver phase 2 of the review of member contributions
- introduce a new employer pension contribution rate in line with the results of the 2020 scheme valuation
- permanently remove abatement for special class status (SCS) members in line with the Agenda for Change (AfC) pay deal for 2023 / 2024 which is currently suspended to 31 March 2025
- make further miscellaneous amendments
Partial retirement
The miscellaneous amendments include proposed changes to:
- allow members of the 1995 who have breached the maximum service limits to partially retire
- clarify in the regulations that where a member enters into a salary sacrifice arrangement, this does not constitute an eligible change to their terms of employment for the purposes of taking partial retirement.
Member contributions
The member contribution structure is currently being reformed following a comprehensive review in 2021 and the proposed changes to be introduced in April 2024 follow earlier changes in October 2022.
The changes outlined in this consultation are split into 4 sections:
- implementation of updated member contribution structure as agreed during the phase 1 consultation, with the additional proposed removal of the bottom tier
- futureproofing of the member contribution structure
- real-time re-banding
- changes to the pensionability of overtime up to whole time for members who work part time.
Following some clarifications, we have also made some changes to Scenario 4 in the existing payroll provider requirements for the member contributions changes made in October 2022. The updated version is available on our website: Information for employers about changes to public sector pensions | NHSBSA
How to submit your feedback and by when
You can read more about the proposed changes via the government website: NHS Pension Scheme: member contributions phase 2 and miscellaneous amendments - GOV.UK (www.gov.uk)
If you wish to respond to DHSC about the consultation, you can respond online via the link above.
The consultation closes at 11.59pm on 7 January 2024.
Information for members
We're planning to write to members in January 2024 to advise them of the changes to scheme regulations that will affect them. We'll share a copy of this letter with you in advance.