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Meaning of Pensionable Pay

Pensionable pay is defined within Regulation C1 (1) of the NHS Superannuation Scheme (Scotland) Regulations and means, subject to the provisions of this regulation:

all salary, wages, fees and other regular payments payable to a member, in respect of pensionable employment as an Officer, but does not include bonuses or payments made to cover expenses or overtime.

The difficulty arises with the use of the phrase "other regular payments". There are a large number of different allowances paid by employers, some of which are pensionable and others which are not.

The following paragraphs may be helpful to employers, in order to make the correct decisions on whether an allowance is pensionable or not. Employers should be aware of the following points which have been listed into general related categories.

If you require information about a specific type of payment which is not mentioned in this section, please contact us for further information.

Total Pensionable Pay (TPP)

1995 Section

The Total Pensionable Pay (TPP) figure is the yearly pensionable pay earned in the best of the last 3 years immediately before termination, counting backwards in sets of 365 paid days of pensionable employment. Periods of non-contributing employment e.g. unpaid sick leave, should be excluded from the 365 day calculation and shown separately on any pension application form.

2008 Section

The TPP figure is based on the best 3 consecutive years out of last 10 years immediately before termination, counting backwards in sets of 365 paid days of pensionable employment. Periods of non-contributing employment e.g. unpaid sick leave, should be excluded from the 365 day calculation and shown separately on any pension application form.

There are a number of occasions when a TPP will be required, e. g. benefit estimates and awards, transfer estimates and payments or credits, AVC quotes and purchases etc.

2015 Scheme

TPP is not required for the 2015 scheme as this scheme is calculated as a Career Average Revaluation (CARE) scheme. Each year's actual pay including OSPs is calculated and added to the pension pot with a revaluation added at the end of each financial year.

Earnings Cap

The earnings cap was introduced on 1 June 1989 by HMRC. New members starting on or after this date were limited on the amount of pensionable pay that contributions could be paid on.

Members falling into this category are:

  • Members rejoining after 1 June 1989 following a disqualifying break of one year.
  • Members who opted out taking a refund and subsequently rejoined the scheme.
  • Members transferring in after 1 June 1989 from any scheme other than NHS England & Wales and NHS Northern Ireland.

NB. Members who opted out of the scheme before 1 June 1989 and are reinstated following miss-selling, do not fall into this category.

Removal of Scheme Earnings Limits on which contributions can be made

1995 Section

Service up to 31 March 2008 that was subject to scheme earnings limits i.e. capped will continue to be so. Members who were subject to the cap (and breached it) will receive separate pensions at retirement for their capped and uncapped service. The latter will be based on their final years 'uncapped' pensionable pay. General Dental Practitioners are also subject to a separate dental cap, Maximum Allowable Remuneration (MAR). The Health Department agreed that dental MAR was removed for future service from 1 April 2008.

Members who have current added years' contracts will continue to pay these contracts up to the Scheme Earnings Limits.

2008 section

From 1 April 2008, the Scheme Earnings Limit is removed for future service. The exceptions are:

  • service transferred into the NHS scheme after 1 April 2008 from a scheme that participates in the Public Sector Transfer Arrangement (The Club) if the member was subject to the cap or similar provision in the previous 'Club' scheme.
  • added years being purchased where the member was subject to the cap when the contract was taken out.

Payment of Employee/Employer Contributions to SPPA

Employers are responsible for the collection and payment to SPPA, of all NHSSSS contributions. The Pensions Act 1995 requires contributions to be paid to the Scheme within 19 days of the end of the month in which they were deducted from 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.

Under Section 48 of the Pensions Act and Section 70 of the Pensions Act 2004, SPPA have a legal duty to report any 'breaches of law' to the Pensions Regulator.

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.

Contributions

In order to help pay for improved benefits and future scheme costs, pension contributions have increased.

Employers continue to contribute currently 20.9% - about two thirds of the cost of an individual's pension.

From 1 April 2009 all scheme members will be allocated to a contribution tier based on their pensionable pay.

Tiered contribution rates are no longer carried between employments.

A member's contribution tier is reassessed in-year if:

  • The member starts a new employment. That is, a change of employer or a new additional concurrent employment or a new job with their current employer; or
  • The member's pensionable pay changes in year for an existing employment. This excludes the effect of changes to pensionable allowances that are due to changes in duties that are not planned or are unlikely to persist for at least 12 months. Unplanned and short term fluctuations in allowances such as unsocial hours payments will not lead to a tier being reassessed.

Employees new to the NHS will be allocated to a tier based on the whole-time equivalent salary and fixed allowances as at date of commencement.

The regulations do not allow members to be excused from paying contributions that are properly due. Care should be taken, therefore, to ensure as far as possible that arrears of contributions do not arise.

Under-deductions

Where contributions have been under-deducted, the following action should be taken:

  • Arrears during a current financial year should be collected as soon as is reasonably possible, either by a lump sum payment or by instalments over a short period.

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 other cases, payment will be made by the member direct to SPPA. If it is known that contributions will be outstanding at retirement, SPPA will deduct these contributions from benefits with permission from the member.

Prompt notification and collection of arrears prevents administrative complications from arising should the member transfer to another employer.

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 the HMRC for possible income tax relief.

Prompt action by the employer is essential, only HMRC can advise a member whether or not tax relief is appropriate.

Any arrears of contributions due by the employer should be remitted to SPPA immediately, otherwise penalty interest may also be charged.

Overtime

Overtime is defined as any hours worked in excess of the agreed standard whole-time hours for the grade. For pension purposes this is not extra hours worked by part-time staff which still falls below the standard whole-time hours for the post.

As long as they remain within the standard whole-time hours for the grade, part-time staff are pensionable on extra hours they work.

Example 1

A W/T employee whose whole-time standard hours are 37.5 hours a week, works 40 hours, ie. 2.5 extra hours.

The extra hours are not pensionable because they are above the standard W/T hours for the post.

Example 2

Part time employee contracted for 20 hours works 20 extra basic hours. Would be paid 37.5 hours pensionable and 2.5 hours non-pensionable overtime.

Bonus and Performance Related Payments

It is the employer's responsibility, in the first instance, to determine which payments are pensionable and which are not.

In order for employers to make this decision the following guidelines should be followed:

  • employers may call the same or similar payments by different names - what one may call a bonus another may refer to as performance related pay. We therefore cannot pay too much attention to the name tag but more to the nature of the payment.
  • it does not necessarily matter whether the payment is consolidated.
  • the main considerations are that it must be a regular and continuing feature of the job and the member must have a reasonable expectation of at least being able to earn the payment on a regular basis (yearly is considered regular) through performance of their regular, day to day duties.
  • payments which may fluctuate, are once-only payments or relate to hours above the standard whole-time hours for the post are not pensionable.
  • a performance related payment which is not part of an individual's pay package and one-off lump sum or discretionary bonus or incentive payment for the completion of a particular job is not pensionable.
  • a corporate performance payment may be pensionable provided it satisfies the normal rules relating to performance related pay pensionability and provided that it is also linked to an individual's performance as well as that of the employer eg: applies to Practice Staff, QUAFF payment.
  • a payment that attaches solely to the performance of employers is not pensionable.

The national arrangements relating to performance for senior/general managers provide for performance related pay, which rewards past achievement, to be paid as a percentage addition to future salary on a monthly basis and this is pensionable.

Lastly, it should always be borne in mind that where there are a group of people involved, whatever decision is made for one should apply to others in the same position.

Domiciliary Consultation Fees

Domiciliary fees ARE pensionable. Any such fees payable should be shown separately on application forms and should relate to fees earned in the same period as the 365 days pensionable pay.

Honorary Appointments

An honorary appointment is NOT pensionable. However, where the individual holds concurrent employment which is pensionable employment, any distinction award relating to the honorary appointment is included in the member's pensionable pay.

It is advisable to discuss such cases with SPPA.

Unsocial Hours Payments

Members who work unsocial hours receive an enhanced payments for some of their hours (e.g. nurses working night shifts or weekend duties). Unsocial Hours payments are pensionable and should be recorded as Other Superannuable Payments (OSP's) on application forms.

On-call and Stand-by Duty

Where a member is expected to be available "on-call" or "stand-by" as a feature of their work or where there is a specific rota commitment then that payment IS pensionable.

This would also include locally agreed payments for the provision of periods of emergency cover. Only the payment of the allowance is pensionable.

The hours paid during the "on-call" or "stand-by" periods (e.g. call out payments or overtime payments made) are NOT pensionable.

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

A P/T employee whose contractual P/T hours are 20 hours a week and whose standard WT hours are 37.5 works 23 hours, i.e. 3 extra hours.

The extra hours are pensionable because altogether the hours worked are still under the standard W/T 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.

Example

The member was on nil pay from 21 May to 28 May 2007.

Using the date of retiral of 30 June 2007, the 365 days pensionable pay period in the 3 years would be:

23 June 2009 to 20 May 2010 = 332 days

21 May 2010 to 28 May 2010 = 8 days non contributing

29 May 2010 to 30 June 2010 = 33 days

Totalling: 365 contributing days

Previous 2 years periods would therefore be;

23 June 2008 to 22 June 2009 = 365 days

23 June 2007 to 22 June 2008 = 365 days

(Assuming there are no non-contributing days during these periods)

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.

Step Down Voluntary Protected Pay

Step Down Voluntary protection is only available to members of the 1995 Section.

Overview

Members contributing to the final salary arrangement in the 1995 section of the scheme on or after 1 April 2008, can request protection of their pensionable pay figure for the purposes of calculating subsequent benefits, provided:

  • the member has reached the age of 50.
  • the member has at least 2 years' pensionable service. the member's pensionable pay (whole-time equivalent pay in the case of part-time members) has reduced by at least 10%.
  • the reduction in pay is for at least 12 months.
  • the member applies in writing for such protection within 15 months of the reduction in pensionable pay.
  • for a period of at least 12 months (ending immediately before the reduction the application is in respect of) the member's pensionable pay had not been subject to any other reduction.
  • the member has not already protected their pensionable pay through use of this provision.

Permitted reduction

The permitted minimum reduction in pensionable pay means 10% of the member's whole-time equivalent basic pensionable pay in the 12 months up to the effective date of the protected pay.

An application for voluntary protected pay is a valid application if all the following apply:

  • it is made by an eligible member.
  • it is in respect of service under the final salary arrangement of the scheme only.
  • the member's notional whole time equivalent basic pensionable pay has decreased by at least the permitted minimum.
  • the decrease in pensionable pay is from an amount of pensionable pay that was in effect for at least 12 months immediately before the decrease.
  • it is made, in writing, to the scheme administrator within 15 months of the member's pensionable pay being reduced.
  • the reduction in pensionable pay referred to above remains greater than or equal to the permitted minimum for at least 12 month.
  • there has been no previous valid application.

Members of the 1995 section will have access to new index linked voluntary pay protection arrangements on step down, based on the current pension protection provisions after compulsory step down. Voluntary protection of final pensionable pay can take effect at any age after the members minimum pension age (MPA). Voluntary protected pay is intended primarily to operate when a member takes on a less demanding post in the run up to retirement. Members may make one election to preserve their benefits up to the date their pay (whole time comparable pay for part-time membership) reduces. Employers will be asked to certify a defined criterion. Further details will be available on our website.

Membership Limits

Scheme regulations have been extended to include Death in Service cover where contributions have ceased because maximum membership has been achieved.

The amendment has a retrospective effect from 1 April 1995 and covers members in both the 1995 and 2008 sections of the regulations.

The cover includes:

  • Death Lump sum
  • Survivor partner benefits
  • Child allowance

A member may not earn, or pay contributions, on more than 40 years reckonable membership before attaining age 60 (55 for special classes and Mental Health Officers). At age 65 this limit is 45 years. Restriction to scheme maximum of 45 years.

MHOs who achieve the maximum membership of 45 years before reaching age 60 must continue to contribute until age 60, unless they opt out of the scheme.

Where maximum membership has been achieved and the member is aged over 65 (60 for special classes and MHOs), employers must ensure that cases are identified in good time so that contributions can be ceased.

As soon as contributions cease, employers must inform the scheme member that benefits will be based on membership and pay up to the date of cessation of contributions and not the date of termination of employment. Pensions Increase (PI) is added to benefits if applicable at retirement.

The lifting of the service limits took effect service from 1 April 2008. The limit of 45 years will include the years credited for any transferred in service.

The limit of 40 yrs service before age 60 is removed for service accruing on or after 1 April 2008.

The overall scheme restriction of 45 yrs maximum membership remains.

Where there is difficulty in determining the precise date when contributions should cease, a written request should be sent to SPPA to supply a full membership check and confirm the date.

Retrospective Pay Increases

Where retirement forms have already been sent to SPPA, any changes in pensionable pay must be notified by the employer to SPPA immediately so that revision action can be taken if appropriate.

Sick Leave - Reduction of Pensionable Pay

Statutory Sick Pay (SSP) is pensionable pay on which pension contributions are payable. It should be included as pensionable pay in the total pensionable pay (TPP) for benefit purposes.

However, it should never be included as deemed pay.

Where a member's earnings reduce during the 8 weeks prior to their period of incapacity for work, e.g. moving from whole time to part time, their earnings during sick leave may be less than the SSP payable. In such a case, pension contributions will be based on SSP. and the TTP will not be uprated for pension benefit purposes.

Employer's Statutory Sick Pay - Full Rate Sick Pay

When a member becomes entitled to sick pay at full rate, the SSP is subsumed into sick pay and both member and employer pay contributions on full rate of pay.

Employer's Statutory Sick Pay - Half Rate Sick Pay

When a member becomes entitled to sick pay at half rate, the SSP is paid in addition to this except when SSP is more than half pay. In which case half Occupational Sick Pay will be adjusted to ensure that this element, when added to SSP, does not exceed full pay.

Employer's contributions are based on unreduced pay and member's contributions on the pay plus SSP received, providing the total does not exceed full pay.

Employer's Statutory Sick Pay - Unpaid Sick Leave

When a member's entitlement to paid sick leave has expired, although still entitled to receive SSP, the latter is treated as superannuable remuneration and contributions should be paid on SSP. Employer contribution are based in the unreduced pay. Reckonable service is extended for the period during which SSP is in payment.

Maternity Pay and Leave

Members who do not intend to return to work

A member who goes on maternity leave and does not intend to return to work pays contributions on Occupational Maternity Pay (OMP), if applicable. Employee contributions are based on the amount of maternity pay actually received. Employer contributions are based on the member's salary immediately prior to the period of maternity leave.

Where an employee is not entitled to OMP but has an entitlement to Statutory Maternity Pay (SMP), Employee and Employer contributions cease on the last day of employment.

Members who intend to return to work

A member who intends to return to work following maternity leave is pensionable, regardless of whether the leave is paid or unpaid. Employee contributions, during paid maternity leave, are deducted on the amount of pay actually received. During unpaid maternity leave, contributions are based on the amount the member was receiving immediately before the unpaid maternity leave commenced. Employer's contributions during paid and unpaid maternity leave are based on the member's salary immediately prior to the period of maternity leave. The member's salary on which employer contributions are based is recalculated for any subsequent pay award.

A member may elect to receive payment of OMP apportioned over the whole period of the maternity leave. Employers should still calculate and deduct employee contributions on the basis of the underlying entitlement and dates for which the payments were due.

During a period of unpaid maternity leave, employee contributions will be calculated on the rate last paid i.e. SMP.

Where an employee is not entitled to OMP but has an entitlement to Statutory Maternity Pay (SMP), employee contributions are payable on SMP. Employer contributions are based on the member's salary immediately prior to the period of maternity leave.

Any arrears of pension contributions can be collected when the member returns to work.

Added years contributions will continue to be payable on the normal salary before maternity leave started (the rate in payment immediately before maternity pay started).

Additional Pension contributions will continue to be payable at the agreed monthly rate and should be collected by lump sum on return to work.

Member changes option

A member who changes her mind and decides not to return to work shall have their contributions re-assessed based on the "not returning to work" paragraph above.

Keep in touch days

An employee who chooses to have "Keep in Touch Days" should have contributions deducted on the pay actually received. Employers contributions are based on the member's normal salary

Any arrears of pension contributions can be collected when the member returns to work .

Contributions

Employers should make members aware that contributions are payable both on paid and unpaid maternity leave when they make a statement of intention to return to work.

Where contributions have been correctly paid on any part of maternity leave, (whether paid or unpaid leave), they should not be refunded to the member.

To avoid an arrears situation, membership should extend to the last day for which contributions have been paid and that date recorded as the date of termination. Employers should advise SPPA of any adjustments.

Paternity Leave, Parental Leave, Adoption Leave

Where the leave is paid the employee's contributions are based on the pay actually received. Employer's contributions are based on the member's normal salary.

Where the leave is unpaid the employee's contributions are based on the rate of pay in force immediately before the period of unpaid leave. Employer's contributions continue to be based on the member's normal salary.

Any arrears of pension contributions can be collected when the member returns to work.

Annual Leave

Pensionable service is extended to include payment of untaken annual leave on termination of employment. Where a member takes up pensionable employment with another NHS employer during the time covered by the untaken annual leave, pensionable service with the new employer will commence following the period of untaken annual leave. This is to ensure that there is no overlap in superannuable service and that contributions are not paid twice for the same period.

Paid Notice

Paid notice should not be confused with payments made in lieu of notice and employers are advised to work on the following basis:

  • the period reckons as contributing membership;
  • pension contributions should be deducted on the full amount.

Leave of Absence other than Sickness or Injury

Members must continue to pay contributions based on the amount of pensionable pay they were receiving immediately before they went on leave of absence.

Any arrears of pension contributions can be collected when the member returns to work.

Notifying SPPA

SPPA relies entirely on the employer to provide TPP information both timeously and accurately either on request or automatically when completing benefit application forms.

SPPA will approach employers if details are missing.

General Guide for Completion of SPPA Retirement Application Form

Part 1 – to be completed by the member

Section 1 Information required to allow SPPA to update members details.

Section 2 Bank details of the account to which payment is to be made.

Section 3 Details of spouse/civil partner for dependant benefit purposes.

Section 4 Members who leave the scheme can choose to take an additional lump sum by giving up part of their pension. This is known as making a lump sum choice or commutation of pension [site map: 1.3.3]. Members should indicate on this section if they would or would not like to increase their lump sum and by what amount. If a quote is required the member should tick the box marked ‘further information required’.

Section 5 Details of any Additional Voluntary Contributions the member has.

Section 6 Details must be entered about Lifetime Allowances and lump sum declaration.

Further guidance is also available on HMRCs website.

Section 7 Details of any intended lump sum for recycling.

Further guidance is also available on HMRCs website.

Section 8 The member should confirm if they intend to return or continue to work for the NHS. This would possibly affect the payment of the member's pension and they may require further information on the effect that going back to work could have on their pension.

Section 9 Preserved members, details of previous NHS employment are required.

Section 10 Declaration must be signed and dated by the applicant.

Part 2 – to be completed by the employer

Action to be taken by the employer

You should agree the date of retirement with the member and forward the form to the employee for completion. This should be done at least four months prior to the intended date of retirement.

The form is designed to provide information for all types of membership and you should complete Part 2 - Section 1, the relevant pay figure page(s) from sections 2A, 2B, 2C, 2D and 2E, and Section 3 and 4 if relevant.

Where whole time (W/t) and part-time (P/t) has been worked during the member’s final year(s) please complete both of the relevant sections.

Where a backdated pay award or promotion results in an arrears payment being paid, the figures provided in columns 4 and 5 (full time) 4, 5a and 5b (part-time/bank worker) must reflect the actual payments that should have been paid during each calendar period identified. Arrears should be apportioned to the years that they are relevant to, not necessarily the year that payment was made i.e. they should not be included as a lump sum payment in one financial year unless the arrears are relevant to that financial year only.

You should make a final check of the completed form before forwarding all information to us. Ideally, the form should be forwarded to SPPA three months before the intended date of retirement to enable us to process the application and make the necessary payment arrangements.

Section 1

You should ensure Part 1 has been completed by the member and that the details provided by the member are correct. Please confirm the members date of birth on the application matches what you hold on your system by ticking the ‘confirmed by employer’ box.

Section 2A Pay details, 1995 section whole time.

Example Form

Inclusive date to which earnings will be paid

This is the last day the member had or will have superannuation deducted from their salary. If the member had untaken annual leave at the time of retirement, this should be added to their retirement date as annual leave is superannuable.

Annual/weekly rate of salary at date of retiral

You should provide the rate of annual salary plus allowances in payment at retirement. This figure should not include any other superannuable payments.

Column 1 - Period to which pensionable pay relates

We require the last three calendar years prior to the date of retirement to be split in to the relevant rows on the page. Each row should provide 365 contributing day's pensionable pay plus any non-contributing days. You must include any date changes in rates of pensionable pay i.e. after an annual pay award.

Column 2 - Number of days contributing

Cross check that the calendar periods in column 1 total a 365 day calendar period. This is particularly relevant where separate rates of pay are included in the 365 day period.

Column 3 – Number of days non-contributing

The 365 days pensionable information relates to contributing days. If the member had an unpaid period (e.g. due to sickness absence) the 365 day period should be extended to take account of this. The relevant dates of any non-contributing period should be shown as a separate entry of dates in column 1.

Example:

A member retiring on 31/7/2018 had a nil pay period from 1/6/18 to 5/6/18, therefore the 365 day calendar period should be extended to cover 27/7/17 to 31/7/18. Column 3 should note the 5 days non-contributing period.

The two preceding year periods would be (assuming no non-contributing periods):

  • 27/7/16 to 26/7/17
  • 27/7/15 to 26/7/16

Column 4 - Pay (excluding OSPs)

This column should show basic salary payments during the periods noted in column 1. The basic salary should also include the following types of allowance:

  • AFC
  • allowances such as long term RRP
  • alternating shift allowance and rotating shift allowance
  • Whitley allowances such as geriatric lead, psychiatric lead, A&C proficiency allowances and student training allowance
  • medical staff allowances such as Distinction Awards and Discretionary Points.

Column 5 – Other Superannuable Payments (OSPs)

This column should show any OSPs not covered by column 4, paid during the periods noted in column 1, such as:

  • enhanced hours payments
  • AFC
  • unsocial hours percentage payments
  • on-call payments.

As most employees have a future retirement date, OSPs should not be estimated for periods that the employee has not yet worked.

Column 6 - Dates of unpaid leave during the annual period in column (1)

Dates of any unpaid leave.

Total pensionable pay (4) + (5)

For each year in column (1) (final year, 2nd year and 3rd year), the total of pay given in columns 4 & 5 for that year.

Are pay and OSPs provisional or final?

This shows whether the figures provided are final or could be subject to amendment. As the form for retirement is normally completed prior to the member's retirement it is difficult to predict actual earnings in advance. This may be because a pay award is pending. If an estimated figure is given, box 'P' should be used to note that the figures provided are estimated/provisional. When final figures are known, the employer should provide revised figures, again using this page of the application form and indicate that this is final information by completing box 'F'.

Section 2B Pay details, 1995 section part-time officer and bank worker.

Example Form

Inclusive date to which earnings will be paid

This is the last day the member had or will have superannuation deducted from their salary. If the member had untaken annual leave at the time of retirement, this should be added to their retirement date as annual leave is superannuable.

PART-TIME OFFICER Part-time fraction for contracted hours i.e. 20/37.5

The fraction of hours the member is on at the time of their retirement date, for example, if they worked 24 hours per week and the full time equivalent was 37.5 hours per week, it would be 24/37.5

Annual whole time equivalent rate of salary at date of retiral

You should provide information of the whole time rate of annual salary plus allowances in payment at retirement, inclusive of any allowances not in column 4.

This figure should not include any other superannuable payments.

Column 1 - Period to which pensionable pay relates

We require the last three calendar years prior to the date of retirement split in to the relevant rows on the page. Each row should provide 365 contributing day's pensionable pay plus any non-contributing days. You must include any date changes in rates of pensionable pay i.e. after an annual pay award.

Column 2 - Number of days contributing

Cross check that the calendar periods noted in column 1 relate to the period of contributing employment. This is particularly relevant where separate periods of pensionable employment with differing rates of pay are included in the reported period.

Column 3 - Number of days non-contributing. (Not relevant to Bank Workers)

Cross check that the calendar periods in column 1 total a 365 day calendar period. This is particularly relevant where separate rates of pay are included in the 365 day period.

Example:

A member retiring on 31/7/2018 had a nil pay period from 1/6/18 to 5/6/18; the 365 day calendar period should be extended to cover 27/7/17 to 31/7/18. Column 2b should note the 5 days non-contributing period.

The two preceding year periods would be (assuming no non-contributing periods):

  • 27/7/16 to 26/7/17
  • 27/7/15 to 26/7/16

Column 4 - Actual Pay (exclude OSPs)

This column should show basic salary payments during the periods noted in column 1, the SB203 hours for this period should be used in this calculation. For the purposes of this column basic salary should include the following types of allowances:

  • AFC
  • allowances such as long term RRP
  • alternating shift allowance and rotating shift allowance
  • Whitley allowances such as geriatric lead, psychiatric lead, A&C proficiency allowances and student training allowance
  • medical staff allowances such as Distinction Awards and Discretionary Points.

The entry in this column should reflect the member’s actual pay.

Column 5a - OSPs to be uprated by SPPA

This column should show any OSPs not covered by column 4, paid during the periods noted in column 1, such as enhanced hours payments and AFC unsocial hours percentage payments, which will be uprated by SPPA in the benefits calculation, in accordance with the number of hours worked.

Column 5b - OSPs not to be uprated by SPPA

The entry in this column should only relate to payments such as the AFC, on call percentage payments and Whitley on call payments, where the full time rate is also paid to part-time staff. This figure will NOT be uprated by SPPA in the benefits calculation as the full time rate has already been paid.

If you are unsure if OSPs are uprated or not, this should be confirmed with the health department.

If you enter the OSP amount in the wrong column and this results in an overpayment, SPPA will refer the member back to you.

Column 6 - No of hours (estimate/actual hours) worked during period in column 1

To allow SPPA to uprate the payments in column 5a, they require a note of the actual hours worked in the period, including any additional part time hours worked.

Column 7 - Standard whole time hours for period in column 1

To uprate the payments in column 5a, details of the whole time equivalent hours are required in the period. Using the example below, the following formula should be used to calculate the WTE hours for the period.

Days in period x WTE weekly hours / 7 = WTE hours

274 x 37.5/7 = 1,467.86 WTE hours

Column 8 - Annual whole time equivalent pensionable pay for column (4) with dates of change the same as column 1.

This should be the annual WTE salary rate on which the figure in column 4 is based, during the period given in column 1.

Total annual pensionable pay (4) + (5a +5b)

For each year in column (1) (final year, 2nd year and 3rd year), the total of pay given in columns 4, 5a & 5b for that year.

Domiciliary consultation fees

Enter the monetary value of any Domiciliary Consultation Fees paid during the 365 contributing days period used.

Are pay and OSPs Provisional or Final?

This shows whether the figures provided are final or could be subject to amendment. As the form for retirement is normally completed prior to the member's retirement it is difficult to predict actual earnings in advance. This may be because a pay award is pending. If an estimated figure is given, box 'P' should be used to note that the figures provided are estimated/provisional. When final figures are known, the employer should provide revised figures, again using this page of the application form and indicate that this is final information by completing box 'F'.

Section 2C Pay details, 2008 section and 2015 scheme members - whole time.

Example Form 

Inclusive date to which earnings will be paid

This is the last day the member had or will have superannuation deducted from their salary. If the member had untaken annual leave at the time of retirement, this should be added to their retirement date as annual leave is superannuable.

Earnings details for the year prior to the final part year

This is the most recent annual return, for example, if the member retired 20/08/2019, we would require details of the members pensionable earnings from 1/4/2018 to 31/3/2019 (year 18/19).

Earnings details for the final part year from 1 April to the inclusive date

As we already have the most recent annual return, this is for the final part year up to the members retirement date. Using the above example, if the member retired 20/08/2019, we would need the final part year from 01/04/2019 to 20/08/2019.

As section 2C already requests the leaving date at the top of the page and the most recent annual return, the date required will be from the start of the final part year. Using the example above, as the final part year is from 01/04/2019 to 20/08/2019, 19 would be entered for the year field, so the form should read 01/04/19.

If the member is a 2015 scheme member and was tapered in to the scheme during the final part year we will require the final part year to be separated in to two lines. Again using the above example, if the member tapered to the 2015 scheme on 01/08/2019 the figures would be entered in the first row from 01/04/2019 to 31/07/2019 and the second row should cover the period 01/08/2019 to 20/08/2019.

Total pensionable pay for final part year

This is the total of the Total superannuable pay column(s).

Annual rate of salary at date of retiral

You should provide information of the rate of annual salary plus allowances in payment at retirement.

Are pay and OSPs provisional or final?

This shows whether the figures provided are final or could be subject to amendment. As the form for retirement is normally completed prior to the member's retirement it is difficult to predict actual earnings in advance. This may be because a pay award is pending. If an estimated figure is given, box 'P' should be used to note that the figures provided are estimated/provisional. When final figures are known, the employer should provide revised figures, again using this page of the application form and indicate that this is final information by completing box 'F'.

Section 2D Pay details, 2008 section and 2015 scheme members -.part time and bank worker.

Example Form

Inclusive date to which earnings will be paid

This is the last day the member had or will have superannuation deducted from their salary. If the member had untaken annual leave at the time of retirement, this should be added to their retirement date as annual leave is superannuable.

Earnings details for the year prior to the final part year

This is the most recent annual return, for example, if the member retired 20/08/2019, we would require details of the members pensionable earnings from 1/4/2019 to 31/3/2019 (year 18/19).

Earnings details for the final part year from 1 April to the inclusive date

As we already have the most recent annual return, this is for the final part year up to the members retirement date. Using the above example, if the member retired 20/08/2019, we would need the final part year from 01/04/2019 to 20/08/2019.

As section 2C already requests the leaving date at the top of the page and the most recent annual return, the date required will be from the start of the final part year. Using the example above, as the final part year is from 01/04/2019 to 20/08/2019, 19 would be entered for the year field, so the form should read 01/04/19.

The “Total superannuable pay” column will include any OSP payments.

If the member is a 2015 scheme member and was tapered in to the scheme during the final part year we will require the final part year to be separated in to two lines. Again using the above example, if the member tapered to the 2015 scheme on 01/08/2019 the figures would be entered in the first row from 01/04/2019 to 31/07/2019 and the second row should cover the period 01/08/2019 to 20/08/2019.

Part time fraction for contracted hours i.e. 20/37.5

The fraction of hours the member is on at the time of their retirement date, for example, if they worked 20 hours per week and the full time equivalent was 37.5 hours per week, it would be 20/37.5.

Total pensionable pay for final part year

This is the sum of the Total superannuable pay column.

Domiciliary Consultation fees paid to an officer over the last 365 days.

Enter here the monetary value of any Domiciliary Consultation Fees paid during the 365 contributing days period used.

Are pay and OSPs provisional or final?

This shows whether the figures provided are final or could be subject to amendment. As the form for retirement is normally completed prior to the member's retirement it is difficult to predict actual earnings in advance. This may be because a pay award is pending. If an estimated figure is given, box 'P' should be used to note that the figures provided are estimated/provisional. When final figures are known, the employer should provide revised figures, again using this page of the application form and indicate that this is final information by completing box 'F'.

Section 2E Pay details, Practitioner.

Period to which entry relates

The pensionable earnings information from the last annual return supplied to us up to the inclusive date to which earnings will be paid, for example:

The member is retiring 30/06/2019 and we have already been supplied with annual return information up to 31/3/2017.

The first row would be the annual return 1/4/2017 to 31/3/2018

The second row would be the annual return 1/4/2018 to 31/3/2019

The third row would be the final part year 1/4/2019 to the inclusive date of 30/06/2019

Total pensionable earnings for period

This column should show basic salary payments during the periods noted in the Period to which entry relates.

Section 2F Employer Declaration

The officer who completes the application form should complete the Employer Declaration and if possible stamp the address field. If the employer declaration is not completed we will not be able to accept the application form as completed.

Section 3 Certification relating to Premature retirement.

There are two options for members retiring prematurely

1. Prematurely retired because of redundancy or organisational change.

2. Prematurely retired in the interest of efficiency of the service.

Section 4 Partial retirement certificate by employer.

Members wishing to take partial retirement should have consulted their employer before completing the NHS: RET form, to ensure that they qualify and match the criteria.

To qualify for applying for Partial retirement, the member:

  • must be in the 2008 section or 2015 scheme
  • must be in pensionable employment and remain in at least one employment if there are more than one
  • will have reached the minimum pension age of 55 years
  • will incur a reduction in pay of at least 10% of actual pay earned in the 12 months prior to the reduction taking place (in case of concurrent employments, this is from all employments)
  • be aware that the reduction will remain in place for a period of at least 12 months
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