As the end of the month approaches, many NHS employees will be reflecting on a fairly significant financial planning matter – in that your net pay will reduce due to the increases in pension payments towards the NHS Pension (which is excellent) which took effect from 1st April 2012. Contribution rates are based upon full-time salary levels and the larger increases impact those with higher NHS pensionable pay. Your pensionable pay does not include all of your income and it is best to review your March payslip (the end of the NHS financial year) where you will see a total pensionable pay figure for the year. This is the amount that your NHS Trust employer report to the NHS Pensions Agency at Hesketh House.

Anyway, for those earning £26,558 – £48,982 of pensionable pay, your payments will increase by 1.5% to a total of 8.0% of your pensionable pay each month. All those earning more that £48,983 have had their payments increase by 2.4% of salary. This means a total of 8.9% a month for those earning £43,983 to £69,931; 9.9% for those with pensionable incomes between £69,932 and £110,273 which will cover most senior staff. Those earning over £110,273 will now pay 10.9% this is generally Consultants and those with Merit Awards etc. The number crunchers estimate that 52% of NHS staff will pay more towards their pension, estimated to be approximately 682,500 people. You can see a table form of this by clicking this link.

It is important that you keep your payslips and P60’s safely, clients should send me a copy of their March 2012 payslip and ideally this should be sent as a pdf scan. This is vital information to enable us to calculate pension contributions for the annual allowance and lifetime allowance, which obviously helps us to do a thorough job in relation to your financial planning, and in particular your pension.

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