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Update on introduction of member contributions changes

Following a consultation earlier this year regarding changes to member contributions that will be implemented from 1 October 2022, the Department of Health and Social Care (DHSC) has recently consulted on proposals for how the pensionable earnings thresholds in the new member contribution structure will be uplifted to account for the Agenda for Change pay increase. 

This consultation closed on Friday 12 August at 11.45pm.  

You can read more about the consultation here: NHS Pension Scheme: proposed uplifts to the member contribution tier thresholds - GOV.UK (www.gov.uk) 

We are awaiting the outcome of the consultation and once DHSC has published its response, we will:  

  • Share an updated version of the payroll provider briefing pack we shared in June to reflect the outcome of the consultation  

  • Provide further guidance for employers on the how the changes are being implemented, how we’ll be communicating with members and resources you can use  

  • Update our website to reflect the outcome of the consultation  

  • Share a copy of the letter that we will be sending directly to all active members before 1 October outlining the changes  

A separate letter will be sent to deferred members from 1 October onwards.  

As a reminder, the changes to member contributions are being implemented in phases: 

  • the first phase, including initial changes to the tiers and contribution rates and a move to using actual annual rates of earnings (instead of whole time equivalent) will come into force on the 1 October 2022 

  • the second phase introducing further amendments to the contribution tiers and rates will take place on a date to be confirmed in 2023 

  • a final phase could include the aggregation of earnings for multiple part time posts and the removal of a limit on pensionable earnings to whole time hours. This is not expected before April 2024.