The costs of the Scheme are determined by the Government and also the Scheme Actuary who performs periodic valuations of the Scheme to determine how much needs to be paid in to provide the benefits paid out. These costs are shared between the HSC employers and the Scheme members.
As a Scheme member you pay a contribution towards your pension based upon your pensionable pay. The more you earn, the higher your contribution rate may be. Your employer pays the remainder of the pension contribution.
There are currently eleven rates of member contribution, starting from 5.2% of pensionable pay for the lowest earners and this increases based on their actual pensionable pay. If the overall cost of the Scheme increases, the amount you pay may also increase. These eleven rates will be compressed into 6 rates in the year 2023/24 (date to be confirmed)
Contributions are taken from pay before tax so members receive tax relief on any amount they pay. Members may also pay a lower rate of National Insurance. This can reduce the actual amount that they pay depending on their contribution rate, earnings level and personal rate of tax. You will find a factsheet on the links below for the Scheme years 2015/2016 through to 31 October 2022. On 01 November 2022 the rates changed and details are available on the HSC Pension Scheme Contribution Rates from 1 November 2022 factsheet.
The rules in respect of tiered contributions apply to all members of the HSC Pension Scheme.
Your employer contributes an amount equal to 22.5% of your pensionable pay.
For more information regarding cost and contributions click on the relevant link below:
- HSC Pension Scheme Contribution Rates from 1 November 2022
- Tiered Contributions for Scheme Years 2015/2016 through to 2021/2022 Factsheet