NHS 2015 CARE Pension Scheme Guide | Modern Benefits Structure

2015 Scheme Tools & Resources

2015 Scheme Calculator

Calculate your CARE pension benefits

McCloud Remedy Guide

Understand your remedy period choices

Flexible Retirement

Explore modern retirement options

Key 2015 Scheme Features

Normal Pension Age

State Pension Age (currently 66-68)

Accrual Rate

1/54th of pensionable pay each year

Revaluation

CPI + 1.5% (capped at 2.5%)

Flexibility

Partial retirement and wind-down options

2015 CARE Scheme Overview

The NHS 2015 Scheme is a Career Average Revalued Earnings (CARE) pension providing modern, flexible benefits:

Key Features:

•Career Average design - pension built from all years of service

•Annual revaluation to maintain purchasing power

•Normal Pension Age linked to State Pension Age

•1/54th accrual rate providing competitive benefits

•Flexible retirement options from age 55

Modern Benefits:

•Partial retirement while continuing to work

•Wind-down provisions for gradual retirement

•Enhanced survivor benefits

•Improved ill-health provisions

•No maximum service limit

All active NHS staff are now members of the 2015 Scheme. Active members of legacy schemes moved across on 1 April 2022.

Source: https://www.nhsbsa.nhs.uk/member-hub

CARE Pension Calculation

Career Average calculation builds pension year by year:

Annual Pension Build-Up:

•Each year: Pensionable pay ÷ 54 = pension earned

•Example: £30,000 ÷ 54 = £555.56 pension for that year

•Revaluation applied annually to maintain value

Revaluation Process:

•Previous years' pension increased by CPI + 1.5%

•Maximum increase: 2.5%

•Minimum increase: 0%

•Applied each April to all accrued pension

Total Pension Calculation:

•Sum of all revalued annual pension amounts

•Plus any transferred-in benefits

•Protected rights from legacy schemes

•McCloud remedy choices for 2015-2022 period

Source: https://www.nhsbsa.nhs.uk/member-hub/getting-estimate-your-pension

Member Contributions

Tiered contribution structure based on whole-time equivalent pay:

2026/27 Contribution Rates:

•Up to £13,259: 5.2%

•£13,260 - £27,797: 6.5%

•£27,798 - £33,868: 8.3%

•£33,869 - £50,845: 9.8%

•£50,846 - £65,190: 10.7%

•Over £65,191: 12.5%

Employer Contributions:

•Standard rate: 23.7% of pensionable pay

•Covers pension, lump sum death benefit

•Includes administration costs

•No employee contribution to employer rate

Source: https://www.nhsbsa.nhs.uk/member-hub/cost-being-scheme

Flexible Retirement Options

The 2015 Scheme offers various flexible retirement pathways:

Partial Retirement:

•Draw some pension while continuing to work

•Reduce hours or grade while accessing benefits

•Continue building pension on reduced pay

•Available from minimum pension age (55)

Wind Down:

•Gradual reduction in pensionable pay

•Protection against pension reduction

•Maximum 5-year wind-down period

•Must be genuine reduction in responsibilities

Phased Retirement:

•Multiple partial retirements possible

•Each pension drawn separately

•Flexibility to match individual circumstances

•Employer agreement required

Source: https://www.nhsbsa.nhs.uk/member-hub/your-options-flexible-retirement

McCloud Remedy and 2015 Scheme

The McCloud remedy affects 2015 Scheme members:

Remedy Period (2015-2022):

•All eligible members moved to 2015 Scheme

•Choice available at retirement

•Compare 2015 benefits vs legacy scheme benefits

•Deferred Choice Underpin ensures best outcome

Post-2022 Position:

•All members remain in 2015 Scheme

•Continued CARE benefit build-up

•Annual revaluation protection

•Modern flexible provisions apply

Key Considerations:

•No immediate action required

•Choice made when benefits crystallize

•Full information provided at retirement

•Professional advice available for complex cases

Source: https://www.gov.uk/government/publications/public-service-pension-schemes-guidance/guidance-on-the-public-service-pension-schemes-consultation

How to sanity-check your 2015 benefits

Check pensionable pay

Your CARE accrual is based on pensionable earnings each year. Verify payslip pensionable pay where overtime, LTFT, or extra sessions are involved.

Track revaluation

Each year's pension slice is revalued. This can make older 2015 accrual more valuable than a simple 1/54 calculation suggests.

Compare retirement ages

2015 benefits are linked to State Pension Age, so early-retirement reductions are a bigger planning point than for many legacy members.

Watch annual allowance

CARE growth can still create annual allowance issues in years with pay jumps, awards, backdated pay, or high extra pensionable earnings.

Continue your planning journey

These related guides cover the next questions that usually come up after this topic.

1995/2008 Scheme

Compare CARE accrual with legacy final salary sections.

McCloud Remedy

Understand remedy-period choices and revised statements.

Annual Allowance

Check pension input amounts in high-growth years.

Modern, Flexible Pension Scheme

The 2015 Scheme provides a modern pension structure with built-in protections against inflation and flexible retirement options. The McCloud remedy ensures you can choose the best benefits for the 2015-2022 period while continuing to build valuable pension benefits going forward.