The additional pension calculator
An additional pension purchase facility is available as a means of increasing your pension. Members of the NHS and New NHS Pension Schemes (or employers on their behalf) will be able to buy additional annual pension that will provide a maximum of £5000* extra pension a year when they are retired.
Members may buy in installments or by a lump sum. Where they buy in installments they will be required to pay a fixed amount each month and commit to the purchase over whole years, up to a maximum of 20, or to normal pension age if earlier.
Employers buying on a member’s behalf can only do so by a lump sum payment. The cost of this facility will depend on how much additional pension the member wants to achieve, and the length of time over which they are prepared to make the extra contributions.
The minimum commitment will be for extra contributions that will provide additional pension of £250 a year on retirement.
The additional pension calculator is for members of the NHS Pension Scheme and the New NHS Pension Scheme who are considering buying additional pension, and allows them too see how much different levels of increase will cost.
If a member buys additional pension by lump sum the full payment must be received by the employer within 1 month of the application being accepted by NHS Pensions. NHS Pensions will raise an invoice and send it to the employer for payment. If NHS Pensions do not receive payment from the employer within that period the members application for additional pension will be cancelled. If payment is received by NHS Pensions the purchase is complete.
* This amount is for 2008/09 and will increase in future years in line with the retail price index.