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Document How is the value of Added Years calculated for Practitioners?

Although NHS Pensions cannot advise the value of Added Years purchased by practitioners until retirement, the following formula will be used to calculate this value:

The number of years being purchased x the average remuneration (Pay) = Added Years Value

The added years value is subsequently included as part of the dynamising in the year that the contract finishes. The total up rated pay is multiplied by 1.4% for the pension figure and by 4.2% for the lump sum figure.

Even if a practitioner reduces their hours they will still purchase the amount of added years that they contracted to buy. Reducing their hours will not reduce their purchase amount. By reducing their income the member will reduce the pay credit that they receive for the Additional Voluntary Contributions. NHS Pensions will look at the average remuneration from the start of the contract to end, therefore if a practitioner reduces their pay then their average remuneration will reduce.
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