NHS Pension Banding
In 2008 the government changed the way NHS pension contributions were deducted by introducing a tiering system. When pay is increased via pay awards, promotions, exceeding incremental points etc. staff often move to the next tier up.
The 2021 3% national NHS pay award was announced in August and backdated to 1 April 2021. This increase in pay has moved some staff into the next tier for pension contributions.
The payroll system (ESR) re-assessed pensionable pay using September payslips, and made the necessary changes to the pension contribution rate. If a member of staff moved tiers (latest list below) the revised contribution rate was backdated to 1 April to align with the increase in pay.
Pension scheme rules are set by the government, enforced by NHS Pensions, assessed by ESR and implemented by the employer (or by a payroll supplier such as NHS Shared Business Services on the employer's behalf).
For further information on tiered contributions please visit: Tiered employee contributions from 2015-2016 employer factsheet-20210412-(V7).pdf (nhsbsa.nhs.uk)
The government is currently in consultation on amending NHS pension contribution rates. Details on this can be found here: Department of Health and Social Care launches consultation on NHS Pension Scheme member contribution rates | NHSBSA