Withdrawal of NRRP – Protection of Pay & Pensions
Where members pensionable pay falls as a consequence of the withdrawal of nationally agreed Recruitment and Retention Premia, arrangements have been put in hand to ensure that the impact on final pension is limited by pay protection.
This should be arranged between employers and NHS Pensions without members having to do anything.
As currently planned, under the transitional arrangements, payments of the national RRP will stop on 31 March 2013 when the 50% payment ceases. NHS pensions taking account of the three year basis of assessment of final pay consider that protection does not need to be put in place until 2013. At that time employers are under instruction to notify all cases to NHS Pensions and to write to all affected members telling them protection has been put in place.
Under protection members pensions are calculated in two parts based on pension up to 2013 and pension after 2013 and that is compared with a standard pension calculation based on all service, with the member getting the higher of the two. The benefits of protection are structured so as to retain their value after any changes to the pension scheme as may be implemented in 2015 or any transfer by members between the 1995 and 2008 sections as a result of their Choice decision.
Leave a Reply