All members of the NHS Pension Scheme (Scotland) (NHSPSS) pay a set contribution towards their pension based on their gross annual pensionable pay; the contributions must be collected by employers and paid to SPPA within 19 days of the end of the month in which they were deducted from a member’s salary.
These time scales ensure that monies deducted for pensions are not appropriated for any other purpose and it is very important that these time scales are strictly adhered to.
If employers do not complete and forward the relevant paperwork this may mean that employee's pension rights are being affected and the employer is acting in breach of the statutory Scheme Regulations and also Section 49 of the Pensions Act 1995.
Employers are advised that the Pensions Regulator is likely to seek information from scheme managers about any breaches which they regard as a criminal offence. As scheme manager, SPPA are required by Section 70 of the Pensions Act 2004 to report any 'breaches of the law' to the Pensions Regulator.
Contributions
Members of the NHS Pension Scheme (Scotland) 2015 (NHSPSS) pay a percentage of their pensionable pay to the scheme, known as a contribution rate.
Following Consutation by the Scottish Government, changes were made to NHSPSS rules from 1 April 2024 which affected member and employer contributions.
- From 1 April 2024, employer contribution rates increased to 22.5%
- From 1 October 2024 members will pay contributions based on actual pensionable earnings instead of whole-time equivalent earnings as set out in Tables 1 and 2 below.
Members who were active in the scheme on the last day of the previous scheme year and the first day of the current scheme year will have their contribution rate assessed using actual pensionable earnings received during the previous scheme year. For this purpose, their earnings will be assessed against Table 1 below.
Where a member started a new job or their contribution rate changed during that preceding year, pensionable earnings from the date of change should used to determine the member’s contribution rate. Earnings should be annualised, so they are representative of a full year and assessed against Table 1.
Pensionable earning band in 2023/2024 | Contribution percentage rate from 1 October 2024 |
| Up to £13,330 | 5.7% |
| £13,331 to £25,367 | 6.4% |
| £25,368 to £30,018 | 7% |
| £30,019 to £37,663 | 8.7% |
| £37,664 to £39,497 | 9.8% |
| £39,498 to £48,009 | 10.5% |
| £48,010 to £51, 954 | 11.2% |
| £51,955 to £72,656 | 11.6% |
| £72,657 and above | 12.7% |
Where a member has an employment change which results in a change in actual pensionable pay during a current scheme year, their contribution rate will require to be reassessed. Pensionable earnings for the current scheme year should be annualised to represent a full year. The full year’s earnings are then used to see if those earnings fall into a different band and therefore a different percentage rate should apply from the date of change to the end of the scheme year. To assess the applicable rate for the current year, Table 2 below should be used.
Table 2
Pensionable earning band in 2024/2025 | Contribution percentage rate |
| Up to £13,330 | 5.7% |
| £13,331 to £26,762 | 6.4% |
| £26,763 to £31,669 | 7% |
| £31, 670 to £39,734 | 8.7% |
| £39,735 to £41,669 | 9.8% |
| £41,670 to £50,650 | 10.5% |
| £50,651 to £54,811 | 11.2% |
| £54,812 to £76,652 | 11.6% |
| £76,653 and above | 12.7% |
Where members have concurrent part-time employments with the same employer, the earnings should be aggregated. Earnings from the multiple posts should be added together and the applicable contribution rate allocated based on total pensionable earnings.
It should be noted, however, that members who hold concurrent posts with different employers should not currently be aggregated.
Under-deductions
The regulations do not allow for members to be excused from paying contributions that are properly due, meaning care should be taken to ensure as far as possible that arrears of contributions do not arise.
Where contributions have been under-deducted, any arrears during a current financial year should be collected by the employer as soon as is reasonably possible, either by a lump sum payment or by instalments over a short period, and remitted to SPPA immediately, otherwise penalty interest may also be charged.
Prompt notification and collection of arrears will help prevent administrative complications arising should the member transfer to another employer.
Arrears relating to earlier financial years will be collected by the employer after SPPA has agreed with the member that the 'net pay' method of deduction is acceptable - this does not include backdated scheme joiners.
In cases where the 'net pay' arrangements cannot be applied and the member has to make payments of arrears direct to SPPA, it will be for the member to apply to HMRC for possible income tax relief. It should be noted that only HMRC can advise a member whether or not tax relief is appropriate.
In other cases, payment will be made by the member directly to SPPA; if it is known that contributions will be outstanding at retirement, SPPA will deduct these contributions from benefits payable with permission from the member.
Additional Hours Worked (Part-Time)
A part-time member who works hours in addition to their normal working week will be pensionable for those additional hours up to the whole-time equivalent. This includes part-time members who have concurrent employments.
Example: Where a P/T employee whose contracted hours are 20 hours per week, and whose standard W/T hours for the post are 37.5 hours per week, works 23 hours, i.e. 3 extra hours, the extra hours are pensionable because the hours worked are still below the standard W/T hours for the post.
Non-Contributing Days
Contributions are still taken from salary when a member is receiving reduced pay due to sick leave. The contributions stop, however, when the member comes to the end of this period and goes onto nil pay.
Similarly, contributions also stop for other periods of unauthorised absence such as strike days.
As no contributions are being collected during such periods the 365 day period should not include this period of time and the dates will need to be extended back by the number of non-contributing days.
Guidance note: Where circumstances do not fit into the general descriptors in the above paragraphs, employers are advised to contact the Scottish Government Health Department.