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Document How have the 2016 changes to the State Pension affected the NHS Pension?

Prior to 6 April 2016 the State retirement pension was made up of two parts:
  • The basic pension – often referred to as the old age pension
     
  • The State Second Pension – previously known as the State Earnings Related Pension Scheme or SERPS
NHS Pension Scheme contracted their membership out of the State Second Pension  (S2P) and took on the responsibility for paying that pension. In return members paid National Insurance (NI) contributions at a lower rate than would normally apply.

From 6 April 2016 there will be a new state pension, for those that reach state pension age on or after 6 April 2016.  The introduction of the new state pension means the end of contracting out and the end of current reductions to NI contributions for employees. This means that from April 2016 you will no longer receive the NI rebate of 1.4%.

Because your NI record before 6 April 2016 is used to calculate your new state pension, it may be reduced for the time you were contracted out and paying less NI. You may be able to get more new state pension by adding qualifying years between 5 April 2016 and your SPA.

For further information on the new State Pension, please see the website.

If you have already reached your State Pensionable Age prior to 6 April 2016 you will not be affected by the changes, even if you decide to defer your pension until after that date.
 
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new state pension, contracted out, change to state pension, 2016 changes
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