What you'll receive when you retire

When you retire you can claim an annual pension and a tax-free lump sum. The amount of pension and lump sum that you'll be entitled to will depend on your age at retirement, the scheme or section you are a member of and the type of retirement that applies to you. Take a look at the relevant section below to see how your retirement benefits are calculated.

NHS Superannuation Scheme (Scotland) 1995 Section

If you're a member of the 1995 Section, you'll receive a basic annual pension plus a tax-free lump sum of three times your basic pension, which is based on your accrued Pensionable Service and the best year from your final 3 years' pensionable salary. Part years of service also count towards your pension.

Your pension is calculated as follows:

Pensionable Pay x Pensionable Service x 1/80 = pension

Your Lump Sum is calculated as follows:

Pensionable Pay x Pensionable Service x 3/80 = lump sum

Example

A midwife retires with 28 years and 173 days accrued service and her best year’s salary from her final three years' employment is £25,650. Her pension is calculated as:£25650 x 28 years 173 days x 1/80 = £9129.47 per year.

Her Lump Sum is 3 x her pension, or: £25650 x 28 years 173 days x 3/80 = £27388.41

Further information about how your pension is calculated can be found in the NHS Superannuation Scheme (Scotland) 1995 Member Guide. You can also use our online calculators to estimate your benefits.

NHS Superannuation Scheme (Scotland) 2008 Section

If you're a member of the NHS 2008 scheme you receive a pension equal to 1/60th of your reckonable pay for each year of pensionable membership of the scheme. Your reckonable pay is the average of the best three consecutive years' pensionable pay in the last ten years of your service. Part years of service also count towards your pension.

As well as your annual pension, you have the option to give up some of your annual pension to receive a tax-free lump sum.

Your pension is calculated as follows: Reckonable Pay x Pensionable Service x 1/60 = pension

Example

A midwife retires with 28 years and 173 days accrued service and a reckonable pay of £25650. Her pension is calculated as:

£25650 x 28 years 173 days x 1/60 = £12,172.62 per year. 

Further information about how your pension is calculated can be found in the NHS Superannuation Scheme (Scotland) 2008 Member Guide. You can also use our online calculators to estimate your benefits.

NHS Pension Scheme (Scotland) 2015

If you're a member of the NHS 2015 scheme, you'll receive a pension based on your earnings throughout your career. In each year that you pay into the scheme, you earn a pension equal to 1/54th of your pensionable pay. So, for example, if you earned £18000 in a year, your pension for that year would be 1/54th of £18000, which is £333.33.

So long as you are still paying into the scheme the amount you earn each year is revalued annually in line with increases to the Consumer Prices Index plus 1.5%.

As well as your annual pension, you have the option to give up some of your annual pension to receive a tax-free lump sum.

Further information about how your pension is calculated can be found in the NHS Pension Scheme (Scotland) 2015 Member Guide. You can also use our online calculators to estimate your benefits.

Pension payments

Pensions are paid on the last banking day of the month in arrears. If you retire in the middle of a month, the first payment you receive may not cover a full month.

If the last day of the month falls on a weekend, payments are credited on the preceding Friday. If it falls on a bank holiday, your pension will be paid on the preceding banking day.

Tax and pensions

Your pension is taxable, and when it starts, HMRC will deduct tax at an emergency rate until they can provide an appropriate tax code. You should contact HMRC for any tax related enquiries.

Further information on pensions in payment is available in our Pension Payroll section.

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