Consultation outcome

NHS Pension Scheme: proposed amendments for April 2025

Updated 10 March 2025

Applies to England and Wales

Introduction

The NHS Pension Scheme is designed to offer significant value in retirement to people who have chosen to dedicate part or all of their careers to serving the public through the NHS. Backed by the Exchequer, the NHS Pension Scheme offers the security of a guaranteed income in every year of retirement for its contributing members, on some of the most generous terms available from a pension scheme.

The legal framework for the NHS Pension Scheme

There are 2 NHS Pension Schemes:

• the current 2015 Scheme
• the previous scheme, which is divided into the 1995 and 2008 Sections (the ‘legacy scheme’)

Due to this, there are 3 different sets of regulations under which entitlement to pension and other benefits are calculated:

• The National Health Service Pension Scheme Regulations 1995 (SI 1995/300) (the ‘1995 Regulations’)
• The National Health Service Pension Scheme Regulations 2008 (SI 2008/653) (the ‘2008 Regulations’)
• The National Health Service Pension Scheme Regulations 2015 (SI 2015/94) (the ‘2015 Regulations’)

Proposed changes to scheme rules   

The Department of Health and Social Care (‘the department’) keeps the rules of the pension scheme under review to ensure it continues to help the NHS attract and retain the staff needed to deliver high-quality care for patients.

This consultation proposes the following changes to the scheme rules to:

• retrospectively amend the definition of overtime in the 2015 Scheme so that it aligns with the long-standing policy and practice for additional hours worked by part-time staff to be pensionable up to whole-time equivalent (WTE) hours
• clarify the method for calculating member contributions where pay reduces during a period of absence
• provide for general practitioner (GP) partners and non-GP (general practitioner) providers to update their annual certificate of pensionable profits for 2024 to 2025 to the amount declared to HM Revenue and Customs (HMRC) on their revised tax return. This is required as a result of HMRC’s reforms to standardise the accounting period for businesses
• allow members who are affected by the McCloud remedy to revoke a deferred choice election or for a deferred choice election to lapse in certain circumstances
• make other technical and miscellaneous amendments, including new references to neonatal care leave that the Department for Business and Trade will bring into law from 6 April 2025

Consultation process

The department welcomes views on the proposals set out in this document to amend NHS Pension Scheme regulations.

This consultation document sets out proposed changes on multiple elements of the regulations. At the end of each section, respondents are invited to provide their views on questions specific to that element of the changes. For each of the changes, a draft of the amending regulations is available to illustrate how the change would be applied in law.

Pensionability of additional hours for members who work part time

Background

Scheme regulations provide that overtime payments are not pensionable in the NHS Pension Scheme.

The Agenda for Change (AfC) pay framework provides that for staff who work full time, overtime is hours worked in excess of 37.5 hours per week and is typically paid at premium rate. For staff who work part time, hours up to 37.5 per week are paid at plain time, and hours in excess of 37.5 per week are paid at premium rate. Accordingly, it has been long-standing practice, supported by the 1995 and 2008 Regulations, that additional hours worked up to whole time are not considered to be overtime and are therefore pensionable.

Consultation materials that supported the introduction of the 2015 NHS Pension Scheme signalled that this practice would continue under the 2015 Regulations. Paragraph 4.6 of the consultation on the 2015 Regulations explained that part-time work and earnings would continue to be pensionable in the scheme up to whole time.

The scheme has been administered on that basis and the position set out in scheme literature. However, it has come to light that the 2015 Regulations had been drafted in a way that means the 2015 Scheme inadvertently did not allow for this.

Following a consultation earlier this year, the department amended the 2015 Regulations from 1 April 2024 to correct the issue prospectively. The definition of overtime in the 2015 Regulations now reflects the intended policy that has long existed for the 1995 and 2008 Sections. This means that staff who work part time have any additional hours worked up to whole time automatically pensionable. Any overtime worked above whole time, for both part-time and full-time staff, remains non-pensionable.

Proposals

The department now proposes to amend the 2015 Regulations so that the definition of overtime reflects the intended policy retrospectively and underwrites how the scheme has operated in the period 1 April 2015 to 31 March 2024.

Long-standing practice has been to treat any additional hours worked by part-time staff as pensionable up to a ceiling of what would be their whole time contracted hours. Any hours worked above whole time are considered overtime. This is the position set out in the scheme literature.

The scheme is reliant on employers to apply the rules. It is reasonable to assume that employers will have followed scheme literature and guidance issued by the administrator: collecting and making pension contributions based on any additional hours up to the whole time ceiling. Members will have assumed, expected, and in some instances received, pensions built up on this basis. The retrospective amendment would regularise and ensure no disruption to those accrued rights.

While very unlikely, we cannot rule out the possibility that there could be some members who did not have their additional hours pensioned because their employer followed the actual 2015 Regulations rather than scheme guidance. In retrospectively changing regulations, we are mindful not to create detriment for these members by now obliging them to pay contribution arrears unexpectedly. As a safeguard, we propose to include a ‘carve out’ for any member who had their additional hours treated as non-pensionable. The amended regulations would allow those members to keep their current position (that is, non-pensionable) by default unless they elect for those hours to now be pensionable and pay contribution arrears.

Employers will know how they have applied the rules and whether they followed scheme guidance or not. Those who followed the guidance and existing practice by continuing to treat additional hours (up to whole time) worked by part-time staff as pensionable, will not need to take any action.

Where an employer has not followed scheme guidance, we propose that the 2015 Regulations be amended to require that the employing authority notifies affected members of their ability to elect for all their additional hours that had been classed as non-pensionable overtime in the 2015 to 2024 period, to be converted into pensionable additional hours. The notification must be made before 1 October 2025 and include details of the contributions the member and the employer will have to pay, together with the pensionable pay and service the member will be entitled to count if they make this election. The member would have 3 months from receipt of the employer notification to make the election. The amended regulations set a backstop of 1 April 2026 as a final deadline for elections.

For those employers who did not pension additional hours, they will need to identify affected members and let them know about the option to retrospectively pension any additional hours (up to full time) worked.

The department does not propose to offer contribution refunds to members who pensioned their additional hours worked between 1 April 2015 and 31 March 2024. This is because the published policy intention and scheme literature have been clear on the pensionable status of additional hours worked up to whole time. Additionally, members will benefit in the long run by getting more value from the pension rights purchased than the refund itself.

Draft amending regulations

This section explains how the draft regulations would operate and give legal effect to the proposals.

Retrospectively aligning the definition of overtime with long-standing practice to pension additional hours worked between 1 April 2015 and 31 March 2024

Amending regulation 28 amends the definition of overtime in schedule 15 to the 2015 Regulations. The new definition will apply to work undertaken between 1 April 2015 and 31 March 2024. In the revised definition, at paragraph (a) ‘overtime’ is time worked over whole time according to the terms of the member’s employment contract. This part of the definition will apply to 2 groups of members. The first group comprises members whose additional hours up to whole time were treated as pensionable during that period in line with long-standing practice and scheme literature. The second group are members whose additional hours were not treated in that way but who make an election to pension such hours (see ‘Making an election’ below).

In the second part of the revised definition, at paragraph (b) ‘overtime’ is defined as it is currently. This part of the definition will apply to members whose additional hours were not treated as pensionable up to whole time and who wish to maintain that position. Members in this group will be members who do not make an election to pension those hours.

Making an election

Amending regulation 18 inserts new regulations 27A (pensionable earnings: scheme years 2015 to 2016, to 2023 to 2024) into the 2015 Regulations. This regulation applies to members who, during the relevant scheme years, worked part time and received a ‘relevant payment’. A relevant payment is a payment of salary, wages, fees or other regular payment that was treated by the member’s employing authority as a payment for non-pensionable overtime. This is limited to the payment that was made to the member for work undertaken that was over and above their part-time work, but not in excess of whole time, according to their employment contract.

Where the regulation applies, the member may elect for the payment to be pensionable. The member’s employing authority must, before 1 October 2025, send a notice to the member informing them of their right to make an election. The notice must set out the contributions the member and their employing authority must pay and the amount of pensionable earnings the member will be entitled to count in the 2015 Scheme if an election is made.

A member must make an election in writing, including any information required by their employing authority. An election will apply to all relevant payments received by the member including any received in respect of 2015 Scheme service that has rolled back into the legacy scheme as part of the McCloud remedy. The member has 3 months to make an election or as long a time as the member’s employer considers reasonable in all the circumstances. However, in all cases an election must be made before 1 April 2026.

Members whose service between 1 April 2015 and 31 March 2022 in the 2015 Scheme has rolled back into the legacy scheme (‘remedy members’)

Amending regulation 3 inserts new paragraphs (13) to (19) into 1995 Section regulation C1 (meaning of ‘pensionable pay’) and amending regulation 7 inserts new paragraphs (12) to (18) into 2008 Section regulation 2.A.8 (meaning of ‘pensionable pay’).

These new paragraphs work in a way that is similar to new 2015 Scheme regulation 27A described above. They provide remedy members with the same opportunity to elect (or not) to pay contributions in respect of any relevant payments made to a remedy member during 2015 Scheme membership which has now rolled back into the member’s legacy section and that were treated by their employing authority as a payment for overtime.

The election process works in the same way, in the same time frame and with the same time limits as for elections under the 2015 Regulations. An election must be made in respect of all relevant payments across both the legacy and the 2015 Scheme.

If a member does not wish to make an election, any relevant payments will be treated as a payment for non-pensionable overtime in the member’s legacy section, thereby maintaining the current position regarding the payments.

Question

Do you agree or disagree with the proposal to retrospectively amend regulations to align with long-standing practice, so that additional hours worked between 1 April 2015 and 31 March 2024 by part-time staff are pensionable up to WTE?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Question

Do you agree or disagree that affected members who did not pension their additional hours during the period 1 April 2015 to 31 March 2024, should now be given the option to do so?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Method for calculating member contributions if they are on reduced pay

Background

The NHS Pension Scheme is contributory. Members and their employers are required to pay towards the cost of benefits they build up in the scheme. Members are required collectively to contribute 9.8% across the whole scheme membership. This is known as the member contribution ‘yield.’

From 1 October 2022, the department introduced changes to the member contribution structure, including changing the amount that members pay for their pension benefits. This was the subject of a previous consultation, NHS Pension Scheme: proposed changes to member contributions.

It was agreed as part of this consultation process that the reforms to member contributions would be implemented over 2 phases to give members time to adjust to the changes and the second phase was subject to a separate consultation.

As part of the reforms, member contribution rates have been calculated on actual annual pay since 1 October 2022, rather than their notional WTE pay. This meant that many part-time members saw their member contribution rate reduce from 1 October 2022. Given that the method for calculating member contribution rates has changed, it’s also appropriate to consider how member contributions are calculated where members receive less than full pay, for example, due to maternity leave or sickness absence. It’s the department’s intention that members who are in receipt of reduced pay will have their member contribution rate calculated on their actual annual pay, rather than what they would have been earning had they continued to receive full pay.

Members’ benefit accrual will not be affected by the way their contribution rate is calculated. Under the current legislation, members accrue pension benefits as if they are still in receipt of full pay, even where their pay reduces. These proposals will not affect benefit accrual and members will continue to accrue pension benefits as if they are in receipt of their full pay. These proposals only affect the member contribution rate and consequently, the amount of member contributions that some members will pay.

The types of leave affected by these proposals are:

• adoption leave
• carers’ leave
• leave due to illness or injury
• maternity leave
• neonatal care leave (to be added - see the proposal in the technical and miscellaneous amendments section of this document)
• parental bereavement leave
• parental leave
• paternity leave
• shared parental leave

Member contribution rates for leave where pay reduces

There are a number of reasons why members may go on leave and see their pay reduce. The exact entitlement and how much pay they receive will depend on their individual circumstances and their employer’s policies.

Historically, members have continued to pay the same contribution rate where their pay reduces because their rate was set by reference to what they would have been earning had they continued to receive their full pay (their deemed pay), as set out in example 1. Their overall contributions reduce because the contribution rate was applied to their reduced pay.

Example 1: the ‘old approach’

A member usually earns £30,000 per year pensionable pay and starts sickness absence leave on 1 April 2024. In accordance with their employer’s policy, they are paid in full for 6 months. The member continues to pay 8.3% contributions on pensionable pay of £30,000 per year. For the period 1 April 2024 to 30 September 2024, their contributions would be:

Calculation description: the member’s pensionable pay of £30,000 is divided by 365, and then multiplied by 183, to calculate their pay for the first 6 months. This figure is then multiplied by 8.3%, to calculate contributions of £1,248.41 for these 6 months.

After 6 months, the member drops to half pay on 1 October 2024 for another 6 months. During this period, they pay 8.3% contributions on £15,000 per year. The member’s pension benefits are calculated based on £30,000 (sometimes referred to as their ‘deemed pay’).

For the period 1 October 2024 to 31 March 2025, their contributions would be:

Calculation description: the member’s pensionable pay of £15,000 is divided by 365, and multiplied by 182, to calculate their pay for the second 6 months. This figure is then multiplied by 8.3%, to calculate contributions of £620.79 for these 6 months.

In total, their contributions for the 2024 to 2025 scheme year would be £1,869.20 (£1,248.41 plus £620.79). Their pension benefits accrued in the 2024 to 2025 scheme year would be based on their deemed pay of £30,000.

However, it is appropriate to review this calculation so that the principles remain in line with the changes made from 1 October 2022 - to use actual annual pensionable pay to calculate the contribution rate.

If the contribution rate is calculated based on actual annual pensionable pay, the member pays fewer contributions - see example 2, below. However, their pension benefits remain the same.

Example 2 : the ‘new approach’

A member usually earns £30,000 per year pensionable pay and starts sickness absence leave on 1 April 2024. In accordance with the employer’s policy, they are paid in full for 6 months. The member continues to pay 8.3% contributions on pensionable pay of £30,000 per year. For the period 1 April 2024 to 30 September 2024, their contributions would be:

Calculation description: the member’s pensionable pay of £30,000 is divided by 365, and multiplied by 183, to calculate their pay for the first 6 months. This figure is then multiplied by 8.3%, to calculate contributions of £1,248.41 for these 6 months.

This is the same as example 1 above.

After 6 months, the member drops to half pay on 1 October 2024 for another 6 months. During this period, they pay 6.5% contributions on £15,000 per year. The member’s pension benefits are calculated based on £30,000 (sometimes referred to as their ‘deemed pay’). For the period 1 October 2024 to 31 March 2025, their contributions would be:

Calculation description: the member’s pensionable pay of £15,000 is divided by 365, and multiplied by 182, to calculate their pay for the second 6 months. This figure is then multiplied by 6.5%, to calculate contributions of £486.16 for these 6 months.

This is different from example 1 above because their contribution rate is based on their actual annual pensionable pay, rather than what their pay would have been if they were in receipt of full pay.

In total, their contributions for the 2024 to 2025 scheme year would be £1,734.57 (£1,248.41 plus £486.16). Their pension benefits accrued in the 2024 to 2025 scheme year would be based on their deemed pay of £30,000.

In this example, the member pays £134.63 fewer contributions. Their pension benefits are unaffected by the change in calculation.

The revised calculation means that the member’s contribution rate is based on their actual annual pensionable pay. They pay fewer contributions, but their pension benefits remain the same; therefore, the member is better off overall. This approach is in line with the reforms that came into force on 1 October 2022, to base contribution rates on members’ actual annual pensionable pay.

When reviewing the regulations, the department believes there is some ambiguity over the way that member contribution rates should be calculated for members receiving reduced pay. We therefore propose to clarify the regulations and align them with the new approach, using actual pay to determine the contribution rate for members in receipt of reduced pay. The department proposes the amending regulations have retrospective effect and are backdated to 1 October 2022.

In practice, the regulations may have been applied in different ways since 1 October 2022 and some members may have paid greater contributions, in line with the old approach, whereas other members may have paid fewer contributions in line with the new approach. If members have paid greater contributions than they would have under the new approach, they will receive a refund in contributions.

Given that the proposed changes to the regulations will mean that members receiving reduced pay will pay fewer contributions, they will not suffer a detriment due to the new approach. This change in calculation does not create a situation where members will be asked to pay increased contributions compared to what they will have already paid.

Unpaid leave

Certain types of leave are unpaid and therefore do not naturally attract pension contributions and subsequently no pension benefits. This is because a percentage contribution of no pay, is zero. However, the NHS Pension Scheme regulations currently provide a limited number of scenarios where members can continue to contribute and build up pension benefits, even when they are not receiving pay.

The following types of unpaid leave provide for the option to continue to accrue pension benefits:

• adoption leave
• carers’ leave
• maternity leave
• neonatal care leave (to be added - see the proposal in the technical and miscellaneous amendments section of this document)
• parental bereavement leave
• parental leave
• paternity leave
• shared parental leave

Carers’ leave was added on 1 April 2024, and it’s proposed that neonatal care leave is included from 6 April 2025. Unpaid leave due to illness or injury is not eligible for pension accrual.

The current position in regulations is that the member will continue to pay contributions at the same level as they were paid directly before they went on to zero pay. For example:

Example 3: maternity leave where pay reduces to zero

A member takes maternity leave and is paid at full pay for 8 weeks, based on £40,000 per year pensionable pay. The member continues to pay 9.8% contributions on £40,000. The member continues to pay 9.8% contributions on their full pay for 8 weeks. Their contributions for the 8-week period would be:

Calculation description: the member’s pensionable pay of £40,000 is divided by 365, and multiplied by 56, to calculate their pay for the first 8 weeks. This figure is then multiplied by 9.8%, to calculate contributions of £601.42 for these 8 weeks.

Then the member receives half pay (£20,000 per year) plus £184.03 statutory maternity pay per week for 18 weeks. Their total pay for this period would be £10,216.65 and therefore their annual pensionable pay would be £29,595.85 (£10,216.65 divided by 126 times 365). This means that their contribution rate would be 8.3% and their contributions for the 18-week period would be:

Calculation description: the member’s pensionable pay of £29,595.85 for this period is divided by 365, and multiplied by 128, to calculate their pay for the next 18 weeks. This figure is then multiplied by 8.3%, to calculate contributions of £847.98 for these 18 weeks.

The member then receives statutory maternity pay at a rate of £184.03 per week for 13 weeks. Their annual pensionable pay for this period would be £9,569.56 (£184.03 times 52 weeks) which means that their contribution rate will be 5.2%. Their contributions for this 13-week period would be:

Calculation description: the member’s pensionable pay of £9,569.56 for this period is divided by 365, and multiplied by 91, to calculate their pay for the next 13 weeks. This figure is then multiplied by 5.2%, to calculate contributions of £124.06 for these 13 weeks.

The member then has 13 weeks of unpaid leave before returning to work. During this period, they do not pay contributions but retain the option to purchase backdated membership upon their return to work. To purchase membership, they would pay 5.2% contributions based on annual pensionable pay of £9,569.56 because that was their last actual pay figure prior to becoming unpaid. Therefore, their contributions for the 13-week period would be:

Calculation description: the member’s previous pensionable pay of £9,569.56 for this period is divided by 365, and multiplied by 91. This figure is then multiplied by 5.2%, to calculate contributions of £124.06 for these 13 weeks.

Should the member choose to continue to build pension benefits while they are on unpaid leave, they would pay a total of £1,697.52 (£601.42 plus £847.98 plus £124.06 plus £124.06) contributions paid at various rates for their maternity leave period. They would accrue pension benefits based on their deemed pay of £40,000 per year.

There are no plans to change the method of calculating member contributions for members who are on unpaid leave. The department proposes to retain the current calculation method and continue to use the contribution rate and pensionable pay from directly before the member went on unpaid leave.

Currently, the regulations are drafted in a way which only provides for members to continue building up pension benefits if their unpaid leave immediately follows a period of leave with reduced pay. The regulations do not currently provide for unpaid leave to be pensionable if it immediately follows a period of work or leave with full pay. The department proposes to change this so that the regulations will also provide for members to still have the option to build up pension benefits (in these circumstances) where those members go from full pay to zero pay. The department proposes to keep the mechanism for calculating contributions for members who go from reduced pay to zero pay and apply it to members who immediately go from full pay to zero pay.

The department proposes that these amendments will have retrospective effect to 1 April 2015, when the 2015 Regulations came into force. This will mean that any members who have continued to contribute to their pension and accrue benefits when they went straight from full pay to unpaid leave (for example, taking shared parental leave without pay) will be able to keep their pension accrual for this period. If members would have chosen to contribute to their pension and accrue benefits when going straight to zero pay during a prescribed absence in this period but weren’t able to do so, due to the way the regulations were drafted, then the department will look at how best to enable them to do so now.

The department recognises that the mechanism for calculating members’ contribution rates when they are on unpaid leave means that members who will have their pay reduced prior to going on unpaid leave, will pay fewer contributions than someone who was paid at their usual rate of pay prior to unpaid leave. An alternative proposal could be to use a different calculation to work out what the member contributions should be when a member is on unpaid leave, and this would likely involve creating a fictional amount of pay. Introducing a new calculation would move away from the current scheme architecture and seems unlikely to produce a fair outcome. This is because the scheme itself is not designed for pension benefits to continue to accrue while a member is on unpaid leave. These are notable exceptions that provide for continuity of membership in limited circumstances.

Draft amending regulations

This section explains how the draft regulations would operate and give legal effect to the proposals.

In amending regulation 19, paragraphs (5), (6), (7) (b) and (8) amend regulation 28 of the 2015 Regulations in accordance with the proposed changes outlined in this section. These amendments apply to members on unpaid leave, and provide a mechanism for this leave to be pensionable if it immediately follows a period of work or leave with full pay. This gives members the option to build up pension benefits in these circumstances. The amendments will have retrospective effect to 1 April 2015.

Amending regulation 20 amends regulation 38, to clarify that contributions for members on reduced pay (other than zero pay) are based on their actual reduced pay, rather than their deemed pay. This applies to medical practitioners and non-GP providers. Amending regulation 21 has the same effect for dental practitioners. Amending regulation 25 amends schedule 11, to give the same effect for officer members. These amending regulations have retrospective effect from 1 October 2022, in line with previous changes to use actual pay.

Amending regulation 32 amends regulation 24 of the National Health Service Pension Schemes (Amendment) Regulations 2023 to extend the application of the temporary modifications made to the member contribution provisions in the 2015 Regulations in respect of scheme year 2022 to 2023 for a further year. This is to allow for the required reconciliation exercises for practitioner members who had a period of leave during scheme year 2022 to 2023 to be completed.

Amending regulation 33 amends regulation 26 (modification of regulation 38 of the 2015 Regulations) to set out how this reconciliation exercise should work for medical practitioners who received reduced pay following a period of leave: by using deemed pay between 1 April 2022 and 30 September 2022, and actual pay between 1 October 2022 and 30 September 2023. Amending regulation 34 amends regulation 27 (modification of regulation 39 of the 2015 Regulations) to provide the same amendment for dental practitioners.

Question

Do you agree or disagree with the proposal to clarify that member contribution rates should be based on actual annual pensionable pay for members who are in receipt of reduced pay?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Question

Do you agree or disagree that, for members on unpaid leave who choose to continue building up pension scheme benefits, their member contributions should be based on their pay period immediately before they went on unpaid leave?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

GP and non-GP provider annual certificates of pensionable profit

Background 

From 6 April 2024, the profits of unincorporated businesses must be taxed on a ‘tax year’ basis. Previously they could be taxed on the basis of their annual accounting period if this did not align with the tax year. This change impacts GP practices that do not align their annual accounting period with the tax year. We estimate this to be around 30% of practices in England and Wales.

This new requirement was brought about by HMRC changes to primary legislation (amendments made to the Income Tax (Trading and Other Income) Act 2005 through the Finance Act 2022).

This change has a knock-on impact on the income tax affairs of GP partners, non-GP partners or shareholders in GP practices (general medical services (GMS), personal medical services (PMS), specialist medical provider medical services (SMPMS), or alternative provider medical services (APMS) practices). These members will now need to report and pay income tax on the basis of their tax year rather than their practice’s accounting year profits.

For tax year 2024 to 2025 onwards, where a GP practice prepares their accounts for a period that does not coincide with a tax year, GP partners and non-GP providers in that practice may need to apportion the profits (or losses) of the next or previous accounting periods to determine the relevant tax year’s profits. This may involve the use of a provisional figure in their tax return.

This consultation considers the impact of these tax changes on the calculation of NHS Pension Scheme pensionable earnings for some GP partners and non-GP providers from tax year 2024 and 2025 and proposes a revised approach as a consequence.

Currently, the calculation of pensionable earnings for each scheme year (which runs from 1 April to 31 March) is based on an annual certificate of pensionable profits. These certificates allow a member to declare their pensionable income with respect to a specific GMS, APMS, SMPMS contract, or PMS agreement. The certificates are sent to the practice’s relevant host board, who identifies whether the member’s pension contributions are correct. The host board then updates the NHS Business Services Authority with the certified pensionable earnings. This figure is then used as the pensionable earnings on which the member’s pension benefits are calculated.

These certificates are currently based on the self-assessment tax returns members submit to HMRC, and so given the HMRC changes outline above, could now be based on provisional figures which would not take account of the final figures provided to HMRC.

Proposal

The department proposes to make a minor amendment to the 2015 NHS Pension Scheme regulations to provide clear direction on the process for reporting future tax years from 2024 to 2025 onwards. This means that affected GP partners must provide a revised annual certificate of pensionable earnings to the host board where their GP practice accounting year is not aligned with the tax year, and where their certificate was based on a provisional figure submitted to HMRC in their self-assessment tax return.

An updated annual certificate must be completed and sent to the host board within one month of the deadline for the member to notify HMRC of the correct figure on their amended tax return. Subsequently the host board should then determine the correct amount of pension contributions and pensionable earnings.

Draft amending regulations

This section explains how the draft regulations would operate and give legal effect to the proposals.

In amending regulation 26, paragraph (2) amends schedule 12 (practitioner contribution payments) to the 2015 Regulations, in accordance with the proposed changes outlined in this section. This inserts 2 new paragraphs, (4) and (5), into paragraph 1.

The new paragraph (4) provides that from 1 April 2025, when a certificate with provisional figures is included in a medical practitioner’s or non-GP provider’s tax return, the member must provide a revised certificate which includes the actual figures within one month of the starting date of when the revised return containing the final figures was required to be submitted to HMRC. As HMRC requires the actual figures to be provided within 12 months of the provisional figures, the member must therefore provide the amended certificate within 13 months. The new paragraph (5) defines ‘provisional figure’ for the purpose of paragraph (4).

Paragraph (3) of amending regulation 26 also inserts 2 new paragraphs, (4) and (5), to paragraph 2 of schedule 12. This provides the same amendments for medical practitioners who are not members of a practice.

Question

Do you agree or disagree that the proposed changes to scheme rules about the annual certificate of pensionable profit should be implemented?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Revocation or lapsing of deferred ‘McCloud remedy’ choices

Background

In 2018, the Court of Appeal found that regulations and rules put in place in 2015 to protect older public service workers by allowing them to remain in their original pension scheme were discriminatory on the basis of age. This is known as ‘the McCloud judgment’. To remedy that discrimination in the NHS Pension Scheme, all members were required to join the 2015 Scheme from 1 April 2022 and the service affected by the discrimination was rolled back into the member’s original legacy scheme.

Eligible members will subsequently be given a choice at retirement of keeping original legacy scheme benefits or electing to have 2015 equivalent scheme benefits for their service during the 7-year period over which the discrimination identified by the McCloud judgment had effect (known as the ‘remedy period’ which runs from 1 April 2015 to 31 March 2022).

Arrangements for eligible members to make that choice on retirement, known as a ‘deferred choice’, were put in place by the National Health Service Pension Schemes (Remediable Service) Regulations 2023 (the ‘2023 Remediable Service Regulations’). Under those provisions, a deferred choice election is irrevocable once it has been accepted by the scheme manager.

Proposals

Section 11 (elections by virtue of section 10: timing and procedure) of the Public Service Pensions and Judicial Offices Act 2022 provides powers for schemes to make regulations about how and when a deferred choice election may be revoked or will lapse. However, that section does not apply after any benefits have become payable to or in respect of the member after the end of the deferred choice election period. With that in mind, the department is proposing to change the regulations to allow a deferred choice election to be revoked or to lapse in 2 specific circumstances.

The first change will allow members to revoke a deferred choice election within a reasonable period of time before benefits are due to be put into payment. For this purpose, the department considers a reasonable period of time to be up to 2 weeks before the day on which the first benefit payment is due, ‘the cancellation deadline’. If a member revokes a deferred choice election the consequences will be that benefits for service during the remedy period will be paid as legacy scheme benefits (unless a further deferred choice election for 2015 Scheme benefits is made before the end of the election period).

The second change will cause a deferred choice election made by a member to lapse in circumstances where the member dies more than 2 weeks before the day on which the first benefit payment is due. This will enable a change of the decision maker from the member to the designated person who will be able to decide whether to make a deferred choice election concerning the death benefits to be paid in respect of the late member.

The identity of the designated person will depend on the member’s circumstances when they died. The designated person may be the member’s surviving adult dependant, a sole child dependant over the age of 18, the member’s personal representative, another person appointed by the scheme manager or the scheme manager themselves.

Draft amending regulations

Amending regulation 36 amends regulation 12 (election for 2015 Scheme benefits: deferred choice members and deceased members) of the 2023 Remedial Service Regulations to implement both proposals.

Revoking a deferred choice election

The draft amendments provide for a member or their designated person (if the member is unable to look after their own affairs) to revoke a deferred choice election before the cancellation deadline. The cancellation deadline is the beginning of the day 2 weeks before the first day on which the first payment of benefits in respect of remediable service is due to be made. This is called ‘the payment day’. The cancellation deadline may be a later day before the payment day if the scheme manager thinks that is reasonable in all the circumstances of the case. A revocation can only be made by the person who made the election. It must be made by notice in writing in such form and including any information as the scheme manager requires.

Circumstances in which a deferred choice election will lapse

If, before the cancellation deadline, the scheme manager is notified of the death of a member who has made a deferred choice election, the draft amendments provide for that election to lapse. The election will also lapse if it was made by a designated person because the member was unable to look after their own affairs.

Once the election lapses, the scheme administrator will send a revised remediable service statement and election forms to the designated person and a new deferred choice election period will begin.

Question

Do you agree or disagree with the proposal to allow members to revoke a deferred choice election up to 2 weeks before the day on which the first benefit payment is due?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Question

Do you agree or disagree with the proposal that a deferred choice election lapses if the scheme manager is notified of the death of the member and that notification is received up to 2 weeks before the day on which the first benefit payment is due?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Technical and miscellaneous amendments

Neonatal care leave

Background

Neonatal care leave and pay is a new entitlement to leave and pay for employees with responsibility for children receiving neonatal care. It allows parents to take up to 12 weeks of paid leave, in addition to other leave entitlements such as maternity and paternity leave, in circumstances where their child receives neonatal care as a neonate (28 days old or less) for a period of at least 7 days without interruption. The entitlement to neonatal care leave will be a ‘day one’ right, meaning that parents can claim from the first day of their employment. To claim neonatal care pay, parents will need to have worked for their employer for at least 26 weeks ending with the relevant week and also meet the minimum earnings test.

Regulations delivering the entitlement to neonatal care leave and pay (which are being delivered by the Department of Business and Trade) will come into force on 6 April 2025. These will be made under section 80EF Employment Rights Act 1996 (section 80EF was introduced by the Neonatal Care (Leave and Pay) Act 2023) and section 171ZZ16 of the Social Security Contributions and Benefits Act 1992 (also introduced by the Neonatal Care (Leave and Pay) Act 2023.

Proposals

The department proposes to make consequential amendments to the 2015 Regulations to insert references to neonatal care leave alongside references to other types of authorised leave under the scheme, such as maternity leave. We propose that member contributions for those on neonatal care leave are calculated in accordance with section 2 above, so that the treatment of neonatal care leave is consistent with the approach to other authorised absences from work, such as maternity leave, some of which may be unpaid.

Draft amending regulations

Amending regulation 17 amends regulation 21 (absence from work) of the 2015 Regulations to insert ‘neonatal care leave’ into the list describing the different types of absence from work that count as pensionable service where the member contributes to the pension scheme under regulations 30 and 31.

Amending regulation 19 amends regulation 28 (pensionable earnings: break in service) of the 2015 Regulations to insert ‘neonatal care leave’ into the list of absences. Regulation 28 of the 2015 Regulations is a deeming provision which means that, where a member is absent from work due to the reasons listed, and their pay reduces or is zero and they continue to contribute to the NHS Pension Scheme, they will be treated as though their usual earnings would have been paid to them for the purposes of their pension benefit accrual.

Amending regulation 23 amends regulation 68 (effect of being absent or leaving and re-joining scheme during contributions payment period) of the 2015 Regulations to insert ‘neonatal care leave’ in the list of absences. During these absences, members who have elected to pay contributions for additional pension must continue to pay these contributions unless they cease paying their basic contributions under regulations 30 and 31.

Amending regulation 24 amends schedule 10 (practitioner income) to the 2015 Regulations to include ‘neonatal care leave’ in the type of leave payments that are included when calculating practitioner income for dental practitioners.

Paragraph (4) of amending regulation 26 amends schedule 12 (practitioner contribution payments) to the 2015 Regulations to include payments made in relation to neonatal care leave in the figures that dental contractors, and group D dentists must return as part of the annual reconciliation notice or performers’ notice.

Amending regulation 28 amends schedule 15 (definitions) to the 2015 Regulations and defines ‘neonatal care leave’ by reference to section 80EF of the Employment Rights Act 1996.

Question

Do you agree or disagree that provision should be made for members to continue building up pension benefits while on neonatal care leave?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Meaning of qualifying service

Background

Deferred members of the 1995 Section returning to NHS employment or scheme membership between 1 October 2008 and 31 March 2015 after a break of 5 years or more were eligible to join the 2008 Section on return. Previous qualifying service in the 1995 Section counted as qualifying service in the 2008 Section. This meant that deferred 1995 Section members did not have to accrue 2 years’ qualifying service in the 2008 Section in order to qualify for retirement benefits.

This changed from 1 April 2015 when the 2015 Scheme opened and the 2008 Section was closed to new entrants. New entrants and deferred members of the 1995 Section returning from that date after a break of 5 years or more became eligible to join the 2015 Scheme. Previous qualifying service in the 1995 Section counted as qualifying service in the 2015 Scheme.

When the changes were made in 2015 the provisions that allowed qualifying service in the 1995 Section to count as qualifying service in the 2008 Section, were removed in error.

Proposals

The department proposes to correct that error retrospectively from 1 April 2015 to ensure that qualifying service in the 1995 Section continues to count as qualifying service in the 2008 Section for relevant 1995 Section deferred members who joined the 2008 Section between 1 October 2008 and 31 March 2015.

Draft amending regulations

Amending regulations 6 and 12 amend regulations 2.A.5 and 3.A.5 (meaning of ‘qualifying service’) respectively so that 3 groups of deferred members of the 1995 Section will be able to count the relevant qualifying service in the 2008 Section.

The first group of members are provided for by new draft sub-paragraphs (i) of regulation 2.A.5(1) and (h) of regulation 3.A.5(1). These are deferred 1995 Section members who left NHS employment for a period of 5 or more years and joined the 2008 Section on return.

The second group of members are provided for by new draft sub-paragraphs (j) of regulation 2.A.5(1) and (i) of regulation 3.A.5(1). These are deferred 1995 Section members who opted out of membership of the 1995 Section for a period of 5 or more years and joined the 2008 Section on electing to re-join the NHS Pension Scheme before 1 April 2015.

The third group of members are provided for by new draft sub-paragraphs (k) of regulation 2.A.5(1) and (j) of regulation 3.A.5(1). These are deferred 1995 Section members who had a break of 5 years or more in scheme membership comprising any period during which they left NHS employment and any period during which they opted out of scheme membership from the first day of their NHS employment and who also joined the 2008 Section before 1 April 2015.

Question

Do you agree or disagree with the proposal to make a retrospective correction so that qualifying service in the 1995 Section continues to count as qualifying service in the 2008 Section for relevant 1995 Section deferred members who joined the 2008 Section between 1 October 2008 and 31 March 2015?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Parental bereavement leave

Background

Provisions covering the treatment of members on parental bereavement leave were introduced through amendments made to the NHS Pension Scheme regulations by the Parental Bereavement Leave and Pay (Consequential Amendments to Subordinate Legislation) Regulations 2020 (‘the 2020 Regulations’). The purpose of those amendments was to ensure that members on parental bereavement leave are treated in the same way as members on maternity leave, adoption leave, paternity leave and parental and shared parental leave. That has happened in practice, but the amendments made by the 2020 Regulations to the 2008 Section regulations omitted to extend cross references to the various types of leave to include parental bereavement leave in 3 places in each of part 2 (benefits for officers) and part 3 (benefits for practitioners and so on) of those regulations.

Proposals

The department proposes to correct the omissions retrospectively from 6 April 2020.

Draft amending regulations

Amending regulations 5 and 11 amend 2008 Regulations 2.A.4 (pensionable service: breaks in service) and 3.A.4 (pensionable service: breaks in service) respectively to extend the references to the types of leave excluded from the effect of paragraphs (3) and (3A) of those regulations so that parental bereavement leave is also excluded. Paragraphs (3) and (3A) cover periods of authorised unpaid leave where a member may elect to pay contributions for a period of up to 18 months.

Amending regulations 8 and 13 amend 2008 Regulations 2.A.9 (pensionable pay: breaks in service) and 3.A.8 (pensionable earnings: breaks in service) respectively to also extend the references to the types of leave listed at paragraphs (4)(b) of those regulations to include parental bereavement leave. Those paragraphs make provision for what happens if a member’s pay stops during a period of maternity leave, adoption leave, paternity leave and parental and shared parental leave.

Question

Do you agree or disagree that the 2008 Regulations should be amended to fully reflect the practice of treating members on parental bereavement leave in the same way as members on maternity leave, adoption leave, paternity leave and parental and shared parental leave?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Implementation of revised costs for additional pension

Background

From time to time, factors used to establish the cost of purchasing additional pension change. Long-standing policy is that the new factors may apply immediately to new purchases that begin after revised factors are introduced but, for purchases already in progress, the new factors apply from the beginning of the next scheme year.

However, the 2015 Regulations provide for all additional pension contributions to change from the beginning of the next scheme year following a factor change. This inconsistency with the way the 1995 and 2008 Regulations work was unintentional.

Proposals

The department proposes to bring all 3 sets of regulations into line with effect from 1 April 2025.

Draft amending regulations

Amending regulation 22 amends regulation 60 (determination of contribution payable) in the 2015 Regulations so that it works in the same way as regulation Q8 in the 1995 Regulations and regulation 2.C.8 and 3.C.6 in the 2008 Regulations. This will mean that new factors apply immediately to new additional pension purchases that begin after revised factors are introduced but, for purchases already in progress, the new factors apply from the beginning of the next scheme year.

Question

Do you agree or disagree that the 2015 Regulations should be amended so that new purchases of additional pension that begin after an in-year change to the cost, will be based on that new cost?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Members who incorrectly accrued benefits in the 2008 Section after 1 April 2015

Background

Most members were prevented from accruing benefits in legacy public service pension schemes from 1 April 2015 by provision made in the Public Service Pensions Act 2013 (‘the 2013 Act’). The 2013 Act permitted schemes to allow older members who met certain qualifying requirements to continue accrual in legacy schemes after that date. One such requirement was that a member must have service in a public service pension scheme before 1 April 2012. That requirement was incorrectly stated in 2008 Regulations as a requirement that a member must have service in the 2008 Section on or before 1 April 2012.

As a consequence of that error, 135 older members who first joined the 2008 Section on 1 April 2012 were permitted to remain members of that section after 1 April 2015 when they should have become members of the 2015 Scheme from that date. Many such members have since retired and benefits earned in the 2008 Section are now in payment.

Proposals

The incorrect provision is not permitted by the 2013 Act and the department must correct it with retrospective effect from 1 April 2015. On correction, the 135 members in this group will automatically become entitled to 2015 Scheme benefits for any service between 1 April 2015 and 31 March 2022 when the 2008 Section closed to all members. However, the department proposes that no member will be worse off as a consequence of this retrospective correction.

Members whose benefits are in payment and will be higher following the correction

For the majority of members in this group, the correction will result in the payment of higher 2015 Scheme benefits. The scheme administrator will re-calculate benefits, put the higher benefits into payment and make arrangements to pay any arrears due with any interest due as soon as possible after the correction is made. Members do not need to take any action. The scheme administrator will write to members or to the member’s dependants (if the member is deceased) setting out the new benefits that are due.

Members whose benefits will not be higher following the correction

The department estimates that 2008 Section benefits may be higher for between 30 and 50 members out of the 135 members affected. To ensure that these members are not worse off because of the correction, the department proposes to make further provision in regulations to provide for an additional payment to be paid to bring the members’ 2015 benefits earned during the period 1 April 2015 to 31 March 2022 up to the same level as the benefits that would have been paid from the 2008 Section.

For members whose 2008 benefits are already in payment, this will mean that they will see no change to the amounts being paid. For members whose benefits are not yet in payment, at retirement the scheme administrator will compare the 2 sets of benefits for the period 1 April 2015 to 31 March 2022, and, if benefits in the 2008 Section would have been higher, they will pay 2015 benefits plus the additional payment to bring those benefits up to the higher level.

Draft amending regulations

Amending regulations 9 and 14 correct the error by removing the words ‘on or’ from before ‘1 April 2012’ in regulations 2.B.1(3)(a)(i) and 3.B.1(3)(a)(i) (eligibility: general) of the 2008 Regulations. This amendment has effect from 1 April 2015 and ensures that only members who met the age criteria and had service in the 2008 Section before 1 April 2012 (as required by the 2013 Act) will be able to accrue service in that section from 1 April 2015.

Amending regulation 30 inserts new regulation 39A (entitlement to additional retirement benefits) into the National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015. Regulation 39A applies to members who joined the 2008 Section for the first time on 1 April 2012 and were born on or before 31 August 1960. This is the latest date of birth of members who were permitted to remain in the 2008 Section from 1 April 2015. The regulation applies where, on the coming into force of amendments that correct the error in the 2008 Regulations, 2008 Section benefits for service between 1 April 2015 and 31 March 2022 that have been paid or would have become payable but for that correction, exceed the 2015 Scheme benefits now due for that period. Where that is the case, the scheme manager must pay an amount equal to the difference to the beneficiary or to the beneficiary’s personal representative if the beneficiary is deceased.

Question

Do you agree or disagree that members should not be worse off as a result of the retrospective correction to membership eligibility and should, if necessary, receive an additional payment from the 2015 Scheme to make up any difference between 2008 Section benefits and 2015 Scheme benefits for service between 1 April 2015 and 31 March 2022?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Forfeiture of lump sums

Background

Entitlement to an adult survivor pension or a lump sum on death may be forfeited if the intended beneficiary is convicted of the murder or manslaughter of that member or of any other offence of which unlawful killing of that member is an element.

The 2008 and 2015 Regulations providing for lump sums on death clarify that these will not be payable to the convicted beneficiary by references to other regulations that contain the power to forfeit the beneficiary’s benefits in these circumstances. However, current references point to offences of which the member is convicted when, in line with practice and policy, they should rightly point only to offences that may be committed by an intended recipient of benefits payable on the death of a member.

Proposals

The department proposes to correct the relevant cross references with retrospective effect from 1 April 2008 (with regards to the 2008 Scheme) and 1 April 2015 (with regards to the 2015 Scheme).

Draft amending regulations

Amending regulations 10 and 15 amend 2008 Regulations 2.E.21 (payment of lump sums or pensions on death) and 3.E.21 (payment of lump sums or pensions on death) respectively so that the cross references in paragraphs (7) of those regulations to the conviction of an offence specified in paragraph (2) of regulations 2.J.7 and 3.J.7 (forfeiture of rights to benefits) is changed to paragraph (4) of those regulations.

Amending regulation 27 amends paragraph 9 of schedule 14 (payment of lump sums on death) so that the cross reference in sub-paragraph (7) to the conviction of an offence specified in paragraph 12 of schedule 3 is changed to sub-paragraph (4) of paragraph 12 of schedule 3.

Question

Do you agree or disagree with the proposal to correct scheme regulations so that the power to forfeit lump sums accurately refers to a beneficiary’s conviction for unlawfully killing the member, rather than any offence for which the member had been convicted?

• Agree
• Disagree
• Don’t know

Please give reasons for your answer.

Statutory duties 

Public sector equality duty

The public sector equality duty (PSED) places a legal duty on public authorities and others carrying out public functions to consider the needs of all individuals in their day-to-day work; in shaping policy, in delivering services, and in relation to their own employees. The PSED is set out in section 149 of the Equality Act 2010.

The PSED requires public bodies to have due regard to the need to:

• eliminate unlawful discrimination, harassment, victimisation and any other conduct prohibited by or under the act
• advance equality of opportunity between people who share a protected characteristic and people who do not share it
• foster good relations between people who share a protected characteristic and people who do not share it

Having due regard to the need to advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:

• remove or minimise disadvantages suffered by persons who share a relevant protected characteristic that are connected to that characteristic
• take steps to meet the needs of persons who share a relevant protected characteristic that are different from the needs of persons who do not share it
• encourage persons who share a relevant protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low

Having due regard to the need to foster good relations between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:

• tackle prejudice
• promote understanding

The PSED covers the following protected characteristics:

• age
• disability
• gender reassignment
• pregnancy and maternity
• race
• religion or belief
• sex
• sexual orientation

It also applies to marriage and civil partnership, but only in respect of the requirement to have due regard to the need to eliminate discrimination.

The proposals relating to additional hours for part-time staff address the period between 2015 to 2024 where the regulations were inconsistent with the policy intention and could have led to part-time staff receiving different pension benefits from the scheme than they had expected. Our remedy is to address the historic gap by retrospectively applying the policy intention and underwriting administrative practice. Members, if there are in fact any, whose employers followed the previous regulations rather than scheme guidance would have the choice to now pension any additional hours worked. The proposal being evaluated affects part-time staff specifically and has been considered in relation to the protected characteristics as below.

The proposals relating to member contributions during periods of reduced pay are backdated to October 2022. They will apply to members who take different types of authorised leave, including maternity leave. Pregnancy and maternity is a protected characteristic and the impact of the proposals on this group has therefore been considered in more detail below.

The proposals relating to annual certificates of pensionable profit apply equally to all GPs and non-GP providers. Similarly, the proposals relating to allowing revocation or lapsing of deferred McCloud remedy choices apply equally to all members in scope of the McCloud remedy. We have not been able to identify any difference in impact of these proposals by virtue of a particular characteristic.

The various proposed technical and consequential amendments also have equal application across all scheme members. The exception being the small group of members who incorrectly accrued 2008 Scheme benefits after 1 April 2015 on the basis of their age. The proposed correction will only affect that group, however the effect is that none of those members will be worse off financially as a consequence. In summary, for each of the technical and consequential amendments, we have not been able to identify any difference in impact by virtue of a particular characteristic.

In summary, the proposals have been considered for each of the protected characteristics. For most proposals, there are no specific issues that have been raised as part of this analysis. Where we think there is an impact, we have explored this in more detail below.

Age

The proposed changes in relation to additional hours would be applied to all members that were working part time between the period April 2015 and March 2024. The following table shows the distribution of members by age who work part time, as of May 2024, using the electronic staff record (ESR) system. We have considered the potential impact on members in different age cohorts.

Table 1: NHS staff who work part time and full time by age

Age	Full time	Part time	All
Under 25	7%	2%	5%
25 to 29	14%	5%	11%
30 to 34	14%	11%	13%
35 to 39	12%	14%	13%
40 to 44	11%	13%	12%
45 to 49	12%	12%	12%
50 to 54	13%	12%	13%
55 to 59	10%	14%	12%
60 and over	6%	15%	9%

Table 1 shows that staff are more likely to work part time as they age. For example, under 25s make up 5% of the overall workforce, but 7% of the full-time workforce and only 2% of the part-time workforce. By contrast, over 60s make up 9% of the overall workforce, but account for only 6% of the full-time workforce and 15% of the part-time workforce.

The proposal to allow part-time staff to pension additional hours may allow these staff to supplement their pension saving, while working flexibly.

The proposed approach allows staff to keep what they have built up, and provides those who have not previously pensioned the hours, with an opportunity to do so.

Pregnancy and maternity

Amendments to member contribution rates where pay has been reduced will affect staff who take maternity leave, as in example 3 in this consultation document. A member who receives full maternity pay followed by half pay, statutory pay and unpaid leave will benefit from the proposed changes as their contribution rates will reduce with their actual pay, while their pension benefits continue to build at the same rate. Members who have taken maternity leave since October 2022 may retrospectively receive a refund of contributions.

Disability

The NHS Workforce Disability Equality Standard 2023 sets out that 4.9% of the NHS workforce declared a disability through ESR in 2023, which is an increase of 0.7 percentage points since 2022. The number of people declaring a disability in the NHS Staff Survey also increased from 22.4% in 2021 to 23.2% in 2022.

To compare, statistics published by the Department for Work and Pensions, using the results of the Family Resources Survey, estimated that in the financial year 2022 to 2023, 23% of working age adults in the UK had a disability.

There is some data to suggest that disabled people are more likely to work part time. Statistics published by the Department for Work and Pensions using Annual Population Survey data showed that in 2022 to 2023, 32.4% of disabled workers and 21.8% of non-disabled workers were working part time. Between 2013 to 2014 and 2022 to 2023 these proportions decreased for both disabled and non-disabled workers.

However, the proportion of workers working part time has decreased more slowly (by 1.4 percentage points) for disabled workers than for non-disabled workers (by 2.8 percentage points, after rounding).

The proposal to allow part-time staff to pension additional hours may allow these staff to supplement their pension saving while working flexibly.

Sex

The Equality Act 2010 lists ‘sex’ as a protected characteristic. Data for the NHS Pension Scheme is also divided by sex. However, it is important to note that sex and gender are 2 different concepts. A person’s gender identity is not always the same as the sex assigned to them at birth, and some people may not identify as having a gender or identify as non-binary. Gender reassignment is also a protected characteristic under the Equality Act 2010.

Data from the ESR as of May 2024 shows that 76% of the NHS workforce are female.

However, while the NHS is a female-dominant workforce, male members of the NHS Pension Scheme typically receive higher pensions than their female counterparts. A report on public sector pensions published in March 2021 by the National Audit Office (NAO), states that the average pension for male employees in the NHS is £17,541, compared with £6,440 for female staff. The NAO report also states that the difference in average pension payments is 63% for the NHS Pension Scheme, which is far greater than the average of 29% (Teachers’ Pension Scheme) and 47% (Civil Service Pension Scheme), both of which also have a more equal spread of male to female members.

The gap between the average pension for male and female members may be attributed to several factors, including differences in pay, working patterns and career breaks. The NAO report for example, states that current members of the NHS pension scheme, like members of the Teachers’ Pension Scheme, experience a pay gap of around 29%. As well as receiving higher pay than female employees, generally across the public sector male employees are less likely to work part time and have gaps in their length of service. This is partly due to female members being proportionally more likely to have career breaks due to maternity and caring responsibilities. However, it’s worth noting that not all female members will take parental leave or have caring responsibilities.

The proposal to allow part-time staff to pension additional hours may allow female staff to supplement their pension saving while working flexibly and help address the gender pension gap.

Other protected characteristics

We have considered the potential equality impacts of the proposed changes for members who share the remaining protected characteristics (ethnicity, gender reassignment, marital or civil partnership, religion or belief and sexual orientation) and those who do not. The proposals do not raise any particular concerns in relation to these protected characteristics.

The Family Test

While not a legal requirement, the test is designed to ensure policy is developed with a family perspective. Strong and stable families and family relationships, in all their forms, play an important role in society. The Family Test evaluates the potential impact of policies on family relationships.

We have considered all of the proposals in light of the Family Test. Where we think there is an impact, we have explored this in more detail below.

In relation to the Family Test, the proposal to allow part-time staff to pension additional hours is likely to have a positive impact on families, particularly as benefits such as survivor benefits and the death in service lump sum support family relationships and functioning in the event of bereavement.

The proposals in relation to reduced pay help incentivise continued pension savings when members take different types of leave to provide for their families. Reducing the cost and pension impact of reduced pay could support strong and stable families, both at the outset of children’s lives and later (for example, through parental leave).

The proposed technical and miscellaneous amendments would support pension savings for members of the NHS Pension Scheme who take neonatal and parental bereavement leave. These amendments could support families’ long-term finances by removing barriers and encouraging them to continue to accrue pension benefits, while on leave.

NHS Act 2006 duties

In developing these proposals, consideration was given to the duties under the NHS Act 2006. The proposals are consistent with the duty of the Secretary of State to promote a comprehensive health service, the duty as to improvement in quality of services and the requirements of the NHS Constitution.

Environmental principles policy statement duty

We have been unable to identify any environmental effects associated with these proposals.

Question

Are there any further equality issues as a result of the proposed changes, that you think the department should consider?

• Yes
• No
• Don’t know

Please give reasons for your answer.

How to respond

You can respond to this consultation by completing the online survey.

This consultation will close at 11.59pm on 4 February 2025.

If you have any queries on this consultation or require an alternative format, please email nhspsconsultations@dhsc.gov.uk.

Please do not send any personal information through the online survey or to the email address above.

Next steps

The department will consider the responses to this consultation and feedback from stakeholders before finalising its proposals and draft regulations. It is anticipated that the draft amending regulations would come into force on 1 April 2025. This consultation document sets out where the proposed amendments would have retrospective effect.

After reviewing the feedback and considering whether changes should be made, the department will publish a consultation response. 

Privacy notice

Summary of initiative or policy

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

• retrospectively amend the definition of overtime in the 2015 Scheme so that it aligns with the long-standing policy and practice for additional hours worked by part-time staff to be pensionable up to WTE hours
• clarify the method for calculating member contributions where pay reduces during a period of absence (for example, parental leave)
• provide for GP partners and non-GP providers to update their annual certificate of pensionable profits for 2024 to 2025 to the amount declared to HMRC on their revised tax return. This is required as a result of HMRC’s reforms to standardise the accounting period for businesses
• allow members who are affected by the McCloud remedy to revoke a deferred choice election or for a deferred choice election to lapse in certain circumstances
• make other technical and miscellaneous amendments, including new references to neonatal care leave that the Department for Business and Trade will bring into law from 6 April 2025

As part of the consultation process, respondents are invited to complete an online survey to provide their views on the proposals.

Data controller

The department is the data controller.

What personal data we collect

The online survey will ask respondents if they are responding as an individual or on behalf of an organisation. If someone is responding as an individual, they will be asked whether they work in the NHS and which NHS role they perform. If someone is responding on behalf of an organisation, they will be asked the name of their organisation, the type of organisation, and the nations it operates in.

How we use your data (purposes)

The consultation sets out proposals to make policy changes to the NHS Pension Scheme. It is therefore useful to the department to understand whether respondents are NHS staff, and therefore likely to be NHS Pension Scheme members, and what roles they perform.

Legal basis for processing personal data

Under Article 6 of the United Kingdom General Data Protection Regulation (UKGDPR), the lawful basis we rely on for processing this information is: necessary for the performance of a task carried out in the public interest or in the exercise of the department’s official authority.

Your consent is required in providing the requested information, and it is optional as to whether respondents choose to provide information about the sector they work in. This information is helpful to the department in assessing responses to the consultation process.

Data processors and other recipients of personal data

SocialOptic is the data processor.

International data transfers and storage locations

Storage of data by the department is provided by secure computing infrastructure on servers located in the European Economic Area (EEA). The department’s platforms are subject to extensive security protections and encryption measures.

Storage of data by SocialOptic is provided by secure servers located in the UK.

Retention and disposal policy

The department will hold your personal information for up to one year after the online consultation closes. Anonymised information may be kept indefinitely.

The department will ask SocialOptic to securely delete the information held on their system one year after the online consultation closes.

How we keep your data secure

The department uses appropriate technical, organisational and administrative security measures to protect any information it holds in its records from loss, misuse, unauthorised access, disclosure, alteration and destruction. The department has written procedures and policies which are regularly audited and reviewed at a senior level.

SocialOptic is Cyber Essentials certified. This is a government-backed scheme that helps organisations protect themselves against the most common cyberattacks.

Your rights as a data subject

By law, data subjects have a number of rights and this processing does not take away or reduce these rights under the EU General Data Protection Regulation (2016/679) and the UK Data Protection Act 2018 applies.

These rights are:

• the right to get copies of information - individuals have the right to ask for a copy of any information about them that is used
• the right to get information corrected - individuals have the right to ask for any information held about them that they think is inaccurate, to be corrected
• the right to limit how the information is used - individuals have the right to ask for any of the information held about them to be restricted, for example, if they think inaccurate information is being used
• the right to object to the information being used - individuals can ask for any information held about them to not be used. However, this is not an absolute right, and continued use of the information may be necessary, with individuals being advised if this is the case
• the right to get information deleted - this is not an absolute right, and continued use of the information may be necessary, with individuals being advised if this is the case

Comments or complaints

Anyone wishing to access data the department holds on them about this programme or is unhappy or wishing to complain about how personal data is used as part of this programme, should contact data_protection@dhsc.gov.uk in the first instance or write to:

Data Protection Officer
1st Floor North
39 Victoria Street
London
SW1H 0EU

Anyone who is still not satisfied can complain to the Information Commissioner’s Office. Their postal address is:

Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

Automated decision-making or profiling

No decision will be made about individuals solely based on automated decision-making (where a decision is taken about them using an electronic system without human involvement) that has a significant impact on them.

Changes to this policy

This privacy notice is kept under regular review, and new versions will be available on our privacy notice page on our website. This privacy notice was last updated on 10 December 2024.