If you are contributing to the 2015 NHS pension scheme (and have not had a break in pensionable service of 5 years or more) your pension should be revalued every year with inflation. This will be at the CPI rate of inflation plus 1.5%.
We have found that some clients have not received their inflationary increase due to payment delays from NHS Pensions. In fact, the NHS Business Services Authority, which manages the pension scheme, has been known to be several years behind on payments which means checking your own position is particularly important.
If you have opted out of the pension scheme or have left the NHS before your pension scheme’s normal pension age, your pension will be deferred. The benefits are no longer linked to current pay but are protected from inflation and increased every year.
You may also be due an additional pension payment in the April following your retirement – referred to as a ‘second bite’. This is based on the additional pension increase due between the date of your last pensions increase, and the date of your retirement. However, the second bite payment only applies in certain circumstances.
If you drew your pension more than a year ago, it is still advisable to check on your latest P60 that the inflationary uplift has been added to your pension payments.
If you believe your pension payments are incorrect or you would like to find out more about any inflationary increases due, please contact your adviser who will be happy to help.
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 30/05/2023