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Employer pension contributions set to rise

16 June 2014

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Employers in the health service will have to contribute more to employee pensions from 1 April 2015. 

After measuring the full cost of paying pension benefits, HM Treasury raised the contribution rate by 0.3%, to 14.3%. 

Initially, draft valuations had suggested an increase of 4%. 

From April 2015 there will be a new NHS Pension scheme which will offer pensions in payment to increase in line with inflation, a re-evaluation of the benefits of current NHS pension claimants and a higher accrual rate. 

Information from the NHS Employers website states: “At present only limited information is known about the new arrangements as the scheme is still under design. 

“The Government has made clear the final agreement sets out its final position on the main elements of scheme design. The majority of unions have agreed to take the agreement to their executives as the outcome of negotiations on scheme design.” 

Further information is available on the NHS Employers website