Your Yearly NHS pension

How it all works.

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The NHS has two registered pension schemes

  • White bust sculpture of a woman's head and shoulders on a round base, placed on a wooden surface with a light curtain background.

    The 1995/2008 Pension Scheme

  • White textured wall with a black arrow pointing to the left, attached with screws.

    The 2015 Scheme

THE LEGACY SCHEME

How it’s calculated

This is the headline figure on your Total Reward Statement (TRS). It's what NHSBSA estimates you'll be paid each year from your Normal Pension Age, for life, rising each April with inflation (as measured by CPI).

This is the number that matters most. It's what the scheme has actually promised to pay you.

  • Pay £100,000. Service 30 years. £100,000 × 30 ÷ 80 = £37,500 per year, plus a tax-free lump sum of £112,500.

  • Uprated earnings £1,500,000 × 1.4% = £21,000 per year, plus an automatic lump sum normally three times pension: £63,000.

  • Reckonable pay £85,000. Service 20 years. £85,000 × 20 ÷ 60 = £28,333 per year. There is no automatic lump sum, although the member may usually be able to exchange part of their pension for a lump sum.

  • Revalued career earnings £1,500,000 × 1.87% = £28,050 annual pension. There is no automatic lump sum, although the member may usually be able to exchange part of their pension for a lump sum.

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Read on to better understand how Cash Equivalent Transfer Values work