National Health Service Pension Scheme (NHSPS): Fact sheet


General information

Certain University employees are eligible, under the governing Regulations of the NHSPS, to continue to participate in the NHSPS during their University employment as an alternative to USS and OSPS.

Your eligibility to remain in the NHSPS is conditional upon you satisfying the following criteria:
  • That you are employed in connection with (the purpose of) the Medical School or in a post-graduate institute for medical (or dental) research;
  • That you have been in active membership of the NHSPS within the 12 months prior to your current appointment; and
  • That you complete part 1 of application form SD65 and return it to the Pensions Office within 3 months of starting. This is not a form you have to complete to join the NHSPS while working in the NHS but the NHS Pensions Agency require you to fill it in if you wish to join the NHSPS at the University.

If you wish to continue in NHSPS membership and you were most recently employed in the NHS in Scotland or Northern Ireland and/or if you have been paying additional voluntary contributions, please contact the Pensions Office.

The NHSPS is approved by the Inland Revenue and is contracted out of the State Earnings Related Pension Scheme (SERPS).

Members of the NHSPS are sent an Explanatory Booklet, which provides a more detailed explanation of the scheme, the key features of which are detailed below.

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Benefits

The principal benefits are:

  • A pension, payable at retirement at the rate of 1/80 x salary for each year of pensionable service, together with
  • A tax free cash lump sum of three times that pension.

Other benefits are:

  • Early retirement on the grounds of ill health (after 2 years of contributory service). Members who satisfy the Trustees that they are permanently incapable of contributing in their present employment owing to ill-health, become entitled to an immediate pension and cash lump sum calculated on their current salary and pensionable service based on service accrued and a proportion of future prospective service to normal retirement date.
  • A Death in Service Cash Lump Sum equal to two years' pensionable pay. If you are legally married or separated this will be paid automatically to your spouse unless you complete form DB1 (available from the Pensions Office). If you are single or divorced the lump sum will be automatically paid to your estate. However, regardless of whether you are married or not, you can nominate one person including a child or one organisation including a bank, trustee or firm of solicitors to receive the lump sum. If you wish to do this you should complete form DB1. You can change your instructions on form DB1 at any time.
  • A Spouse's Pension, payable upon death to a surviving spouse at the rate of either:
    • on death in service, depending on service completed, up to half the pension that would have been paid if you had retired on the grounds of ill health on the day before death;
    • on death with preserved benefits, half the preserved pension;
    • on death in retirement, half the pension in payment.
  • Child Allowances are payable on behalf of any of the member's children who are under the age of 17 or are over age 17 but still in full time education or training or are permanently unable to earn a living due to ill health or handicap regardless of age. The amount of the allowance depends on the number of dependent children and whether there is a surviving parent who will get an NHSPS widow or widower's pension. Please consult booklet SDF for further details on NHSPS death benefits.
Note:
  • All pensions and child allowances are increased annually in line with the increase in the Retail Prices Index (RPI).
  • All benefits are subject to limits imposed by the Inland Revenue. Generally, the limits will apply only if you have more than 40 years' pensionable service in the Scheme.
  • Nothing stated in this summary can override the Rules of the Scheme.

If you have any queries, please contact the University Pensions Office, who will be happy to provide estimates upon request. Alternatively, please contact the NHS Pensions Authority at the address below.

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Further sources of information

  • Explanatory booklet: All members of NHSPS are sent an Explanatory Booklet which provides a more detailed explanation of the scheme.
  • Scheme address: NHSPS is administered by the NHS Pensions Agency. Enquiries about the scheme or about an individual's entitlements should be sent to: NHS Pensions Agency, Hesketh House, 200/220 Broadway, Fleetwood FY7 8LG.
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