The NHS Pension Scheme is a key employment benefit for NHS staff, including general practitioners and practice staff. This guide outlines how the scheme works, the different sections of the scheme, how it applies to GPs, key contributions, retirement options, and considerations for practices.
The NHS Pension Scheme is a defined benefit scheme, meaning the benefits you receive at retirement are based on your pensionable earnings and service, rather than investment returns.
1995 Section: Final salary scheme with a normal pension age of 60.
2008 Section: Final salary scheme with a normal pension age of 65.
2015 Scheme (CARE Scheme): Career Average Revalued Earnings (CARE) scheme with a normal pension age aligned to the State Pension Age.
Most active members are now in the 2015 CARE Scheme, due to public sector pension reforms.
GP Partners
Salaried GPs
Locum GPs (limited access, must meet specific requirements)
Practice-employed staff (e.g., nurses, managers, receptionists)
Non-GP partners (e.g., practice pharmacists) may be eligible under certain conditions.
Membership is not automatic for all GPs (e.g., some locums) and must be actively maintained through declarations and submissions.
| Pensionable Pay Band | Contribution Rate |
|---|---|
| Up to £13,246 | 5.2% |
| £13,247 to £26,823 | 6.5% |
| £26,824 to £47,845 | 8.3% |
| £47,846 to £70,630 | 9.8% |
| £70,631 to £111,376 | 10.7% |
| £111,377 to £133,108 | 11.6% |
| £133,109 and above | 12.5% |
These are tiered based on actual pensionable earnings, not whole-time equivalent pay.
Employers contribute 20.68% of pensionable pay.
A large portion is centrally funded via the global sum in general practice.
Based on final salary and years of service.
1995: 1/80th pension and 3/80ths lump sum per year of service.
2008: 1/60th pension; lump sum optional via commutation.
Annual pension based on 1/54th of each year’s pensionable earnings, revalued each year with CPI + 1.5%.
Normal Pension Age: State Pension Age.
Normal retirement at scheme age.
Early retirement (with actuarial reduction) from age 55.
Partial retirement: Flexibility to draw part of your pension while continuing to work.
Ill-health retirement: Subject to medical assessment.
In the 1995 Section, this is automatic.
In 2008/2015, you can exchange pension for lump sum (up to a 25% limit based on HMRC rules).
Tax-free growth limit for pensions each year (£60,000 for 2024/25, tapered for high earners).
Breaches may trigger a tax charge; GPs should monitor this annually.
Abolished from April 2024, but tax-free lump sums are still subject to a lump sum allowance (£268,275 or 25% of the old Lifetime Allowance).
Type 1: For GP partners.
Type 2: For salaried GPs.
Must be submitted annually to maintain pension records and ensure accuracy.
Must submit Locum A and B forms.
Pensionable work must be claimed within 10 weeks of the work being performed.
Ensure timely and accurate pensionable pay reporting via PCSE Online.
Deduct and submit employee contributions correctly.
Support salaried and locum GPs with access to pension forms and updates.
Keep track of pension tiering, contract changes, and arrears.
The McCloud remedy addresses age discrimination from pension changes in 2015:
Affected members will have the choice to receive benefits from either their legacy scheme (1995/2008) or the 2015 scheme for service between 1 April 2015 and 31 March 2022.
Applies automatically; no action is needed now, but choices will be made at retirement.
The NHS pension is complex, particularly for GPs with fluctuating earnings or multiple roles. GPs are encouraged to:
Review annual pension statements.
Use PCSE Online to check contributions and estimates.
Consult an independent financial adviser with NHS pension expertise.
Stay informed via NHS BSA, BMA guidance, or LMC updates.