Item Welcome to the NHS Business Services Authority Knowledge Base, the place to ask us anything you need to know

Document How and when will the Scheme Pays amount be recovered?

We recover the cost of paying your annual allowance charge by permanently reducing your NHS benefits when you start to claim them.

If you are a member of the:

  • 1995 Section - your pension and lump sum will be permanently reduced.
  • 2008 Section or the 2015 Scheme - your pension will be permanently reduced. This is the same if you moved from the 1995 Section to the 2008 Section under the Choice exercise.

If you transfer your NHS Pension rights to another pension scheme, your transfer value is reduced to recover the scheme pays cost.

The amount of the reduction will depend on a number of factors including how much the Annual Allowance charge NHS Pensions paid on your behalf was, which section or scheme you are in and when you retire.

Further information, including a list if the actuarial factors used in the calculations (as provided by the Scheme Actuary) can be found in the Estimating the cost of Scheme Pays factsheet on our website.

Please ensure that you fully understand the implications of making a scheme pays election on your future NHS benefits before completing the scheme pays election notice. You should read the guidance and factsheets available about scheme pays on our website.

Fields
Description:
scheme pays recovered

Need more help?

If this doesn't answer your question please contact us directly or search again. Search Again

Does this answer your question?