Consultation outcome

NHS Pension Scheme: proposed policy changes for April 2024

• From: Department of Health and Social Care
• Published: 26 October 2023
• Last updated: 22 February 2024 — See all updates

This was published under the 2022 to 2024 Sunak Conservative government

Applies to England and Wales

This consultation has concluded

Read the full outcome

Government response to the NHS Pension Scheme: member contributions phase 2 and miscellaneous amendments consultation

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Detail of outcome

A total of 160 responses were received. The department is grateful for the responses received, which have helped test the proposals and provided valuable insight.

The department intends to take the next step and implement phase 2 from 1 April 2024. This will conclude the 2021 review of member contributions and complete the move to the new tiers and rates. Relevant contribution tier thresholds will be uplifted annually on 1 April by the rate of increase in the consumer prices index from the previous September. The department will then apply a ‘better of’ test and further increase the thresholds in line with the Agenda for Change (England) pay award as necessary.

The department will proceed with proposals to remove pension abatement for staff who claimed their pension early using historic special class rights and subsequently return to NHS work. This abatement rule has been suspended to support delivery of NHS services and will now be withdrawn permanently.

The consultation asked for views on the potential future removal of the first contribution tier in light of developments in tax policy. The tier will not be removed at this time, and the department confirms its intention to work with the Scheme Advisory Board to consider and monitor the arrangements that HMRC is putting in place to administer the top-up payments.

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Original consultation

Summary

DHSC is seeking views on proposals to deliver phase 2 of the review of member contribution structure and other amendments to the NHS Pension Scheme.

This consultation ran from
2pm on 26 October 2023 to 11:59pm on 7 January 2024

Consultation description

This consultation sets out proposals to make amendments to NHS Pension Scheme regulations. The proposals are to:

• deliver phase 2 of the review of member contributions
• introduce a new employer pension contribution rate in line with the results of the 2020 scheme valuation
• permanently remove abatement for special class status (SCS) members in line with the Agenda for Change (AfC) pay deal for 2023 to 2024
• make further miscellaneous amendments

Documents

NHS Pension Scheme: member contributions phase 2 and miscellaneous amendments

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Published 26 October 2023
Last updated 22 February 2024 + show all updates

1. 22 February 2024

   Added the government response to the consultation.

2. 8 November 2023

   Updated table 3 to correct 'Annual tier threshold' figures for the £25,147 to £30,638, £30,639 to £45,996 and £45,997 to £58,972 bands.

3. 26 October 2023

   First published.