Pensions

Our pensions specialist and officers are part of our Payroll & Pensions team. All incoming pension enquiries to the payroll department are dealt with here, along with the administration of approximately 8300 pension records for Bradford District Care NHS Foundation Trust (BDCFT), Bradford Teaching Hospitals Foundation Trust (BTHFT), Bradford Districts CCG and Airedale, Wharfedale & Craven CCG.

The team consists of three members:

Pensions Specialist Anne Wardman
Pensions Officer Nicola Gledhill
Pensions Officer Alison Calloway
Enquiries are received via post, email, telephone and face to face. Primarily the team are dedicated to maintaining pension records to include retirement figure estimates, calculation of redundancy figures for over 50’s, opting in and out of pension schemes and query resolution. Please address all enquiries to: contact us

Joining a Pension Scheme

Legislation introduced by the government in July 2012 stipulated all employers must provide eligible employees with the opportunity to join a pension scheme to which both the employer and employee must contribute. This legislation is called auto enrolment (AE).

The qualifying conditions are:

• Earning over £10,000 a year (£833.33 a month)
• Are aged 22 or over, and
• Are under state pension age

The aim is to encourage people to save more for their retirement; to have another income on top of the state pension. There are two pension schemes in operation in our organisations:

• NHS Pension Scheme (NHSPS)
• National Employment Savings Trust (NEST)

You cannot choose which scheme to join or be enrolled in, if you are eligible to join the NHSPS you will be enrolled into this; this only differs is if you are already in receipt of an NHS pension or working full time hours in another NHS organisation or if you are over the age of 75. All ineligible employees will be enrolled into NEST.

NHS Pension Scheme (NHSPS)

The NHS Pension Scheme changed on 1 April 2015 through the introduction of a new scheme. Many existing members will have automatically joined the 2015 scheme on or after 1 April 2015. The main features of the 2015 Scheme are:

• It is a Career Average Revalued Earnings (CARE) scheme, rather than a final salary scheme. This means your pension is based on the average of your pensionable pay throughout your whole NHS career. The pension you earn each year is based on your pensionable pay in that year and is increased by a set rate linked to inflation (known as revaluation), each year up to retirement or leaving the scheme. Your final pension is calculated by adding together the revalued pension earned in each year of membership.

• This is still a type of defined benefit scheme which provides pension benefits based on a fixed formula.

• The pension build up rate is 1/54th of pensionable earnings in each year, with no limit on the amount of pensionable membership which can be built up. This rate is higher than the 1995 and 2008 Sections of the current Scheme.

The normal pension age (NPA) is the same as your State Pension age or 65, whichever is later. This is the age at which benefits can be claimed without reduction for early payment. You are automatically enrolled from your first day of employment. Deductions will commence your first salary. Members will not pay tax on the amounts deducted and will also pay a lower rate of National Insurance (NI). Contributions into the scheme are made by both the employee and the employer; the employer contribution is 14.38%, the employee contribution is dependent on your annual pensionable earnings as shown in the table below:

  Annual Pensionable Pay -full time equivalent (£)   Contribution Rate (%)
 A     0.00              to     15,431.99   5.0
 E     15,432.00     to     21,477.99   5.6
 F     21,478.00     to     26,823.99   7.1
 G     26,824.00     to     47,845.99   9.3
 H     47,846.00     to     70,630.99  12.5
 I     70,631.00     to    111,376.99  13.5
 J     111,377.00   and   over  14.5

Being a member provides you with Death in Service (DIS) benefit of 2 x your annual pensionable salary which will be paid automatically to a legal spouse/registered civil partner or nominated person or persons of your choice.

To make the nomination you will need to complete a Partner Nomination (PN1) and jointly sign the declaration. If you have a legal spouse or civil partner this is not applicable. Please also be aware you can nominate someone to receive the Death Gratuity Lump Sum in the event of your death by completing the Lump Sum on death nomination(DB2). These forms can be found on NHS Pensions website www.nhsbsa.nhs.uk/pensions.

It is very important that members keep their address details up to date; if you have changed address or think that the details held are incorrect then please tell your employer and they will update their records, please visit your organisations individual page for details of how to do this.

For any for any further information and full details of the scheme please click here

To contact NHSPS direct you can write to them at:

NHS Pensions Agency
PO BOX 2269
Bolton
BL6 9JS
Members Helpline: 0300 3301 346
Website: http://www.nhsbsa.nhs.uk/pensions.aspx

Pensions Auto Enrolment

If you stopped paying into a workplace pension or opted out, we may soon be re-enrolling you into a Pension Scheme.

What does this mean?

Workers who meet certain conditions are automatically enrolled into a workplace pension scheme. Some were enrolled three years ago when automatic enrolment first started, others were enrolled when they started working for us. Everyone enrolled has the right to leave – or ‘opt out’ – of the Pension Scheme within the first month.

Why are we doing this?

Quite simply, it’s the law.

We have to make sure that we give all workers who aren’t paying into a workplace pension scheme another opportunity to start saving for retirement. That means automatically re-enrolling eligible workers around every three years.

Will I be affected?

You’re likely to be re-enrolled if you opted out of a Pension Scheme or stopped making contributions over a year ago and you:

  • earn at least £10,000 a year

and

  • are under State Pension age.

What does being enrolled mean?

Saving into a workplace pension means that every time you’re paid, a little bit of it goes into your retirement pot. Your employer pays money in too in the form of employer contributions, on top of what you earn.

What happens next?

If you will be affected, we will write to you to let you know that you have been re-enrolled.

If you’re still not ready to start saving for retirement, you can opt out of the Pension Scheme within the first month. You will have to wait until you have been enrolled first.

Look out for more information about automatic re-enrolment from your employer or find out more now at http://www.workplacepensions.gov.uk/employee/

 

NEST

NEST will send you a welcome pack to your home address. Both you and your employer will make contributions each month; your pension belongs to you and is transferable if you leave. Contributions will be taken in line with the table below:

Date Employee Contribution Employer Contribution Total Contribution
1st March 2013 1% 1% 2%
1st April 2018 3% 2% 5%
1st April 2019 5% 3% 8%

Contributions will only be taken from your qualifying earnings i.e. £5824.00pa – £42,385.00pa, they will be deducted from your monthly pay. The government will also contribute through tax relief.

More information on the NEST scheme can be found by visiting: http://www.nestpensions.org.uk/schemeweb/NestWeb/public/home/contents/homepage.html

Impact of Salary Sacrifice

Each year of your pensionable pay counts separately towards the build-up of your final pension benefits. Therefore entering into any salary sacrifice arrangement (e.g Childcare Vouchers, Lease Car Schemes etc.) that reduces your gross pensionable pay will have a negative effect on the amount of pension you are able to build up in that year. The overall effect from participating in any salary sacrifice scheme would reduce the amount of final benefits you earn.

For further information please see page 8 of the scheme guide : http://www.nhsbsa.nhs.uk/Documents/Pensions/2015_Members_Guide_(V2)_Online_only_04.2015.pdf

Frequently Asked Questions:

I want to retire, what do I do?

Please contact the pensions team contact us

For further general information please have a look at the slides below:

Pre-Retirement Slides

I don’t want to be in a pension scheme, can I opt out?

Yes you can;

NHSPS please click here . Please remember to complete both the opt out and refund forms in case there is insufficient time to stop the deduction before your salary is paid. If you have only had one deduction from your pay you will receive a refund in the next available salary; if deductions span more than one pay period the refund will be made directly from NHSPS.

NEST please see your welcome pack or click here: http://www.nestpensions.org.uk/schemeweb/NestWeb/public/home/contents/homepage.html

Can I have an estimate of my pension benefits?

NHSPS this depends on which section of the scheme you are in:

2015 scheme – As this is a Career Average Revalued Earnings (CARE) scheme and we are unable to predict your future earnings, we are unable to provide this.

1995/2008 schemes – If you have either full or tapered protection we may be able to provide you with an estimate, please use the form below:

Estimate request

All members regardless of scheme can access their Total Reward Statement (TRS) using either ESR self-service or the TRS portal at http://www.nhsbsa.nhs.uk/trs

NEST please see your welcome pack or click here: http://www.nestpensions.org.uk/schemeweb/NestWeb/public/home/contents/homepage.html

Can I transfer my pension benefits from another scheme into NHSPS?

Yes you can as long as you do this within 12 months of your start date, for full details of how to do this please go to: http://www.nhsbsa.nhs.uk/Documents/Pensions/Transfer_Booklet_%28V7%29_ONLINE_ONLY_09.2012.pdf

Can I re-join the NHSPS if I have already opted out?

Yes you can, please see the form below:

Joiner – NHS Pension scheme

Please print and complete, and return to address provided on the form.