Implementation of further revised Income Tier Thresholds due to revised Agenda For Change Pay Bandings.

As a direct result of the positive feedback received from our previous session on the implementation of the revised Income Tiers in June 2025, this is a “must attend” event for all NHS Pension Scheme Administrators.

Getting to grips with these further amendments, including the assessment of Tiered Contribution Rates for an extended period, presents a number of challenges for employers.

Background:
From 1 April 2025, the tiered contribution ranges to work out the contribution rate a member pays for membership of the Scheme have been further revised due to the Agenda For Change Pay Bandings. These changes must be implemented in November and backdated to 1st April 2025.

All employees who are eligible for the NHS Pension Scheme reside within the scope of the changes. Employees include “Bank/As & When Required/Zero Hours Contract Workers.”

Important Also Included:
Part-time Scheme Members:
The Department of Health and Social Care (DHSC) made a retrospective change to the NHS Pension Scheme (2015) Regulations on 1 April 2025. These changes clarify that additional hours worked up to whole time equivalent are pensionable.

All NHS employers need to act now to make sure staff don’t miss out on pension benefits and employers must communicate these changes to explain how this will impact their employees/scheme members.

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