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Document What is Protection of Pay - Redundancy?

Membership wihin 1995/2008 Scheme with Full Protection

If you are member of the scheme with Full Protection and suffer a reduction in earnings through no fault of your own you may apply to protect your pension benefits. We can consider protecting pension benefits when you return to work within 12 months of being made redundant and receive a lower rate of pensionable pay. This facility is available to members of the 1995 and 2008 sections of the Scheme – this facility is not available for members of the 2015 Scheme.


Membership wihin 2015 Scheme who did not qualify for Full Protection

If you were previously a member of the 1995/2008 Scheme and you moved into the 2015 Scheme because you do not have Full Protection, you will have a final salary link for the purpose of your 1995/2008 pension benefits. Therefore if you leave and rejoin within five years you are still able to request involuntary protection of pensionable pay subject to the relevant criteria.

 

If you are eligible, an application to protect your pay in this way must be made within three months of returning to pensionable NHS employment.

Protection of Pay is calculated on the best of the last three years up to the date of reduction or mark time pay.

As pension benefits are automatically deferred after a break of 12 months you will not need to apply for protection if returning to NHS pensionable employment 12 months or more after being made redundant.
 
In order for us to confirm if pensionable pay can be protected the following criteria must be met:
  • At least two years qualifying service is held at the time of the redundancy
  • You have been made redundant as verified by the employer
  • Further pensionable NHS employment has been taken up within 12 months of the redundancy
  • The further employment is on a reduced rate of pensionable pay not just reduced hours
  • The application is received within three months of the return to pensionable NHS employment
Please note: if you are a practitioner member your pension benefits are based on your re-valued career earnings. This is known as a Career Average Re-valued Earnings (CARE) pension. It is not necessary for you as a practitioner member to request protection of your pay.

You can apply for protection by completing form SM R9 App form and send this to the employer responsible for the period of employment to be protected. On receipt of a completed SM R9 App form or written request your employer should complete form SM R9 EA ensuring that all relevant information is provided. Your employer should then send form SM R9 EA to us along with the SM R9 App or written application.

We will consider the application and write to you via your employer with the outcome.

For further information regarding Protection of Pay and to download the SM R9 form, please see our website.
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