The NHS Pension Scheme (called Superannuation)

The NHS Pension Scheme (called Superannuation) is an important and valuable staff benefit for people working in the NHS. As a member, you get an excellent package of pension benefits, fully protected against inflation and guaranteed by the government.

Most informed opinion recognises that people will nearly always be better off if they belong to their employer's occupational pension scheme. The Scheme has the full support of NHS Trade Unions and professional bodies. You can opt out of the NHS Pension Scheme but as we have been advised by specialist dental accountants, a dentist would financially benefit from being included in the Pension Scheme.

The NHS Pension Scheme provides:

•  a tax free lump sum on retirement equal to 3 times pension

•  life assurance of 2 years pay while you are working

•  voluntary early retirement benefits

•  ill-health retirement benefits

•  options to increase your benefits

•  redundancy benefits

All pension benefits are based on salary and length of membership of the Scheme. They are worth around 20% of pay overall but only cost around 3.5% of pay for most members, which is extremely good value for money. Please note that the contribution rate for most members is 6% of pay; manual workers pay 5%. But the real cost is normally around 3½% because:

• you get tax relief on your contributions, and

• you pay a lower rate of National Insurance contributions because you are contracted out of the State Earnings Related Pension Scheme.

For more information about the Scheme please visit the NHS Pension Scheme website: www.nhspa.gov.uk/ or download a more detailed leaflet here.