1. HSC Pension Service
New Scheme Members

2. Introductions John Coyle HSC Pension Service Pension Liaison Team
Provide guidance to employers on Pension Regulations and Legislation
Providing workshops & presentations to scheme members updating you on the features and benefits of the scheme.

3. Purpose of Today’s Event
To provide a background to the HSC Pension Scheme
Provide information on how the scheme works and how much it cost
Provide information on the options open to you to enhance your pension benefits at retirement
Provide details of the potential benefits payable to you on retirement
Provide information on benefits payable to your loved ones should anything happen to you

4. Topics for Discussion Brief overview of the Scheme
Transferring Benefits into the scheme
Issues which can Impact your Pension
Increasing your Benefits
Benefits Payable
Survivors Benefits Payable
Important Forms

5. The HSC Pension Scheme
The HSC Pension Scheme is a Defined Benefit Career Average Revalued Earnings (CARE) pension scheme which pays benefits using a defined formula based on annual pension accrued over the lifetime of scheme membership
A pension is calculated on 1/54th of your annual pensionable earnings. This figure is revalued each year up to your retirement
There is an option for you to exchange part of your pension to receive a tax free lump sum
Normal Retirement age in the 2015 scheme is linked to your State Pension Age (SPA)

6. The 2015 Scheme
Contribution rates vary from 5% to 14.5% of your pensionable pay
The contributions you pay receive tax relief
The Scheme provides survivors pension benefits which are payable to spouse, partner, dependent children
The scheme provides a life insurance lump sum payable in the event of your death if still in active service
You can retire and claim your scheme benefits from age 55 but a reduction factor will be applied.

7. Membership of the 2015 Scheme
Membership of the 2015 Scheme is open to HSC employees aged over 16 and under 75
Certain restrictions apply such as:
Member cannot join:
If they are in receipt of 1995 scheme benefits (except tier 1 ill health retirement and the member is under 50)
Member has full protection for future accrual in the 1995 scheme
Member has full protection for future accrual in the 2008 scheme
There is no restriction on the number of years service which can be accrued.

8. Pensionable Pay Tiered Contribution Rates
WTE Pensionable Pay
Contribution Rate
Up to £15,431.99
5.0%
£15, to £21,477.99
5.6%
£21, to £26,823.99
7.1%
£26, to £47,845.99
9.3%
£47, to £70,630.99
12.5%
£70, to £111,376.99
13.5%
£111, and over
14.5%

9. Example Cost
Member earns £21,693 per annum (first point of Band 5 pay scale)
Falls into the 7.1% category
Amount paid = £21,693 x 7.1% = £1, per annum
Actual cost to member when you take into consideration tax relief
£1, x 20% = £308
£1, £308 = £1, per annum (£ per month)

10. Transferring In Benefits from other Schemes
If you have built up Pension Benefits in another scheme you can transfer these benefits into the HSC Pension Scheme
If you have service in NHS England & Wales, Scotland or Isle of Man you must transfer this service to N. Ireland. It does not move automatically
If you wish to transfer benefits in from another Scheme, you must make your application within 1 year of joining the Scheme.
Benefits you have built up in other schemes will be converted to a monetary value and added to the pension you build up in the HSC Pension Scheme.
Further information can be found on the Scheme website at

11. Issues which can impact your pension
Part Time Working
Breaks in Service
Salary Sacrifice
Unpaid Leave
Career Breaks

12. Additional Pension Purchase
Members may increase their retirement package by opting to purchase additional pension benefits in blocks of £250 up to a maximum of £6,500
You can make requests for the cost of purchasing additional pension by submitting Form AP1 to HSC Pension Service
HSC Pension Service will calculate and advise you of the costs (lump sum or instalments)
If you opt to pay by instalments HSC Pension Service will liaise with Payroll Shared Service to set up deductions from your salary
If you opt to pay by lump sum you should forward a cheque to HSC Pension Service
Example cost of additional pension of £2,000 per annum for member age 25 = £110 per month for 10 years or £10,400 lump sum

13. Early Retirement Reduction Buy Out (ERRBO)
ERRBO is a feature of the scheme which allows a member to pay additional contributions to reduce their retirement age down to 65
Maximum buy-out = 3 years of actuarial reduction
Member with NRA of 68 retiring at 65 will have no reduction applied
Example cost for a member age 25 who wishes to buy a 3 year ERRBO is 3.39% of their gross salary
If you are interested in purchasing an ERRBO you should read the factsheet and submit the application form available on the scheme website

14. Benefits Payable Normal Age Retirement Pension
Voluntary Early Retirement Pension
Ill Health Retirement Pension
Partial Retirement

15. How your Pension is Calculated
1/54th of your annual pensionable pay is added to your pension pot year on year
This amount is revalued each year using a set increase amount
The revaluation increase amount is 1.5% + CPI
CPI is the Consumer Price Index which is used by HM Treasury to determine the annual inflation rate each year.
All your years pension are added together to give your final overall annual pension payable

16. How your Pension is Calculated
You should use the calculator on the scheme website to forecast how your pension can grow
The calculator can be accessed at
You must know your State Pension Age to use the calculator. Your State Pension Age can be found at

17. Example Calculation Member joins the scheme at age 25
Starts on first point of Band 5 pay scale (£21,693 per annum)
Using the following assumptions
Member works full time
Member’s pay increases each year by 0.5%
Rate of inflation each year is 0.5%
Member works until Normal Retirement Age of 68
Pension Payable = £30,655 per annum (can opt to take a tax free lump sum)

18. Voluntary Early Retirement
Voluntary Early Retirement (VER) is available to members who have reached their Minimum Retirement Age (MRA).
MRA in the 2015 Scheme is age 55
Reduction factors are applied to the pension calculation to take account of it being in payment longer
You can use the VER Calculator on the website to estimate the potential reduction in benefits.

19. Ill Health Retirement There are two types of Ill Health Retirement
Tier 1 - where the member is found to be permanently incapable of efficiently discharging the duties of their employment
Tier 2 - where the member is found to be permanently incapable of any regular employment
Your HR & OHS teams will assist you in this process
If a member meets the criteria for Ill Health Retirement and cannot continue in their employment they can apply to have their pension benefits paid early.
Benefits will be paid before NPA without any reductions applied.

20. Partial Retirement
Partial retirement is a feature of the 2015 schemes which allows an active member to claim a portion of their pension benefits whilst still continuing in pensionable employment
Member must have reached their MPA (Age 55)
Member’s Terms and Conditions must change and Pensionable Pay must be reduced to at least 90% of pensionable pay received in previous 12 months.
Pensionable Pay must remain reduced for a period not less than 12 months

21. Survivors Benefits
In the scheme you will have Life Insurance cover equal to twice the value of your annual pensionable pay
You can nominate whoever you wish to be the recipient of the death gratuity payment should you pass away in active scheme membership
In the event of your death, A survivors pension is payable to your spouse, civil partner or nominated partner for life (in service or on pension)
If you have dependent children, a child's pension is payable for each child up to age 23

22. Important Literature/Forms/Calculators
Scheme Guides/Transfer in guide/Scheme Factsheets
Pension Calculators
ERRBO/Additional Pension Purchase Factsheets
Nomination Forms (DG3, PN1)
Guidance Material if you were considering opting out of the Scheme
You should familiarise yourself with the scheme website at

23. Contact Details
HSC Pension Service Waterside House 75 Duke St Derry BT47 6FP Website Tel