2015 NHS Pension Scheme Explained: CARE, Contributions & Your Retirement (2026 Guide)

Last Updated: February 2026 | Reading Time: 18 minutes

Quick Answer: If you joined the NHS after 1 April 2015, you are in the 2015 NHS Pension Scheme. If you joined before that date, you were moved into it on 1 April 2022. It is a defined benefit pension — meaning your retirement income is guaranteed by the government, not gambled on the stock market.

What You Will Learn in This Guide

This guide explains everything about the 2015 NHS Pension Scheme in plain, simple English. No jargon. No confusing maths. Just clear answers to the questions NHS staff actually ask.

By the end, you will know:

• Exactly how your pension builds up every year
• How much you pay and what the NHS adds on top
• When you can retire and what you will get
• What the McCloud Remedy is and whether it affects you
• How the 2015 scheme compares to the old 1995 and 2008 schemes
• What happens if you leave the NHS or take a career break
• How to grow your pension further if you want to

The 4 Key Numbers — Know These First

Before anything else, memorise these four numbers. They explain everything about how your pension works:

Keep these in mind as you read. Everything else flows from them.

What Is the 2015 NHS Pension Scheme?

The 2015 NHS Pension Scheme is the pension all NHS Agenda for Change (AfC) staff are now in. It replaced the old 1995 and 2008 NHS Pension Schemes.

It is officially called a CARE scheme. CARE stands for Career Average Revalued Earnings. That sounds complicated, but it just means this:

• Old schemes (1995 and 2008): Your pension was based on your final salary only — what you earned in your last year of work
• 2015 scheme: Your pension is based on every year you work — a small slice from each year’s salary, added together

Think of it like building a wall. Every year you work, you add one brick. Each brick is 1/54th of that year’s salary. At retirement, your total wall of bricks = your annual pension for life.

Why Was the 2015 Scheme Introduced?

The government changed the pension rules in 2015 because the old final salary schemes were becoming very expensive. The 2015 scheme is more affordable for the government to run long-term.

Older staff (those who joined before 1 April 2012) were protected and allowed to stay in the old schemes for longer. Younger staff had to move to the 2015 scheme straight away. A court later ruled this was age discrimination, which led to the McCloud Remedy (more on this in Section 9).

Is It Still a Good Pension?

Yes — emphatically yes. The 2015 NHS Pension Scheme is still one of the best pensions available in the UK. Here is why:

• It is a defined benefit — your pension income is guaranteed for life, no matter what happens to financial markets
• The NHS adds 23.7% of your salary into your pension on top of what you pay
• Your pension grows every year automatically through revaluation, even while you are still working
• It comes with death benefits, a survivor’s pension for your family, and early retirement options

No private pension scheme can match this. Financial advisers regularly tell clients that the NHS pension is the most valuable employment benefit in the UK.

How Your Pension Builds Up — Step by Step

This is the most important section to understand. Most guides get this wrong or make it too complicated. Let us walk through it slowly with real numbers.

The Basic Formula

Every April, your pension for that year is calculated like this:

Your pensionable salary ÷ 54 = pension earned that year

That is it. 1/54th of your salary becomes pension income you will receive every year for the rest of your life once you retire.

A Real Example — Band 5 Nurse, Year by Year

Let us follow a Band 5 nurse called Sarah. She starts at £30,569 in 2026/27.

Year 1 (2026/27):

• Salary: £30,569
• Pension earned: £30,569 ÷ 54 = £566/year
• This £566 is now added to her pension pot

Year 2 (2027/28):

• Last year’s £566 is revalued by CPI + 1.5%. If CPI is 2.5%, the rate is 4%
• £566 × 1.04 = £589
• She also earns a new slice from Year 2’s salary (let us say £32,000): £32,000 ÷ 54 = £593
• Total pension pot after 2 years: £589 + £593 = £1,182/year

At retirement after 30 years:

• Every year’s slice has been growing with revaluation
• A Band 5 nurse who progresses to Band 6 and Band 7 over a career could retire with roughly £18,000–£22,000 per year for life
• That income is guaranteed, inflation-protected, and never runs out

30-Year Pension Growth Table — Band 5 to Band 7 Career

Based on typical Band 5→6→7 career progression with CPI+1.5% revaluation at average 4% per year.

The longer you stay, the faster your pension grows — because both your salary increases AND your existing pot is revalued every year.

Revaluation Rate — The Detail Most NHS Staff Don’t Know

One of the most powerful — and most misunderstood — parts of the 2015 scheme is revaluation.

What Is Revaluation?

Revaluation is how your pension grows while you are still working. Every year on 6 April, every slice of pension you have already earned gets increased by CPI + 1.5%.

• CPI = Consumer Price Index (the official UK inflation measure)
• +1.5% = an extra guaranteed bonus on top of inflation

This means your pension is protected against inflation AND it grows a little in real terms every year — automatically, without you doing anything.

Recent Revaluation Rates

Even in a low-inflation year like 2025, your pension still grew by 3.2% automatically.

What If Inflation Goes Negative?

Do not worry. There is a floor of 0% before the 1.5% is added. So even if CPI is -3%, your pension still grows by 1.5% that year. Your pension can never decrease.

What Happens When You Leave the NHS?

This is important. When you leave NHS employment:

• Revaluation drops to CPI only — you lose the +1.5% bonus
• Your pension is called a deferred benefit
• It still gets inflation protection, but grows more slowly

Over 10 years, losing the +1.5% annual bonus can reduce your final pension by 10–15%. This is one reason it pays to stay in NHS employment for as long as possible.

Use our NHS Pension Calculator to see how different revaluation rates affect your retirement income.

Contribution Rates 2026/27 — How Much You Pay

Your NHS pension contribution is taken from your pay before tax. This means you get tax relief on it automatically — so the real cost to you is lower than it looks.

2026/27 Contribution Tiers

What Does This Actually Cost You After Tax Relief?

Here is the key thing most people miss: because contributions come out before income tax, HMRC is effectively helping pay your pension.

For every pound you put in, the government gives you 20p back through tax relief. Higher rate taxpayers get 40p back. The net cost is significantly lower than the headline percentage suggests.

The NHS Adds 23.7% On Top

Here is the number that should make you never want to opt out. For every £1 of salary you earn, your employer (the NHS) puts in an additional 23.7% into your pension. You do not see this on your payslip — it goes directly into the scheme. But it is money going towards your retirement on top of everything you contribute.

Real example — Band 5 nurse on £30,569:

You pay £166. The system adds another £604. For a total of £770 per month building your retirement fund — for just £133 net cost to you after tax relief.

Should You Opt Out?

For the vast majority of NHS staff: No. Opting out is a significant financial mistake.

If you opt out, you gain £166 in your take-home pay. But you lose £604 of employer contribution. That is £438 of free money lost every single month. Over a 30-year career, that is over £157,000 of employer contributions you will never get back.

The only situations where opting out might make sense are very specific — for example, if you are close to breaching the Annual Allowance (£60,000 pension growth limit). In all other situations, staying in is almost always the right financial decision.

Run the numbers for your own salary using our NHS Pension Calculator.

Normal Pension Age — When Can You Actually Retire?

This is the biggest shock for many NHS staff — especially those who joined thinking they could retire at 60.

The 2015 Scheme Pension Age Is Linked to the State Pension Age

Unlike the old schemes, the 2015 scheme does not have a fixed retirement age. Your Normal Pension Age (NPA) is the same as your State Pension Age — currently 67 for most people, rising to 68 in the future.

How This Compares to the Old Schemes

If you were in the 1995 scheme, you planned to retire at 60. Now, in the 2015 scheme, the equivalent date is 7 years later. This is one of the most significant differences.

Can You Retire Early?

Yes — but it costs you. You can take your 2015 scheme pension from age 55 (rising to 57 from April 2028). However, if you retire before your Normal Pension Age, your pension is actuarially reduced — roughly 5% per year before NPA.

Example:

• Your NPA is 67. You want to retire at 62 — that is 5 years early.
• Reduction: approximately 5% × 5 = 25%
• A £20,000 pension becomes £15,000/year for life

The earlier you retire, the bigger the reduction. You need to weigh the reduction against the extra years of pension you receive.

Use our NHS Early Retirement Calculator to see exactly what your pension would be at different retirement ages.

Partial Retirement — The Option Most Staff Don’t Know About

The 2015 scheme has a powerful option called partial retirement. You can:

• Draw between 20% and 80% of your pension while continuing to work
• Reduce your working hours by at least 10%
• Continue building the rest of your pension for future retirement

This is perfect for older NHS staff who want to slow down without stopping completely. You can take some income from your pension while still earning a salary and building more pension for later.

Your Lump Sum — The Big Difference From the Old Schemes

This surprises a lot of NHS staff, especially those who knew colleagues getting large lump sums at retirement.

No Automatic Lump Sum in the 2015 Scheme

The 1995 scheme automatically paid 3 times your annual pension as a tax-free lump sum at retirement. The 2008 scheme had no automatic lump sum. The 2015 scheme also has no automatic lump sum.

You simply start receiving your annual pension income from your retirement date. Nothing upfront.

But You Can Create a Lump Sum — Commutation

You can swap some of your annual pension for a one-off cash sum. This is called commutation. The rate is:

Give up £1 of annual pension → receive £12 as a lump sum

Example:

• You retire with a pension of £18,000/year
• You decide to commute £5,000 of annual pension
• Lump sum received: £5,000 × 12 = £60,000
• Remaining annual pension: £13,000/year

The maximum tax-free lump sum allowed under HMRC rules is £268,275 (the Lump Sum Allowance). Any amount above this is taxed as income.

Is It Worth Taking a Lump Sum?

It depends entirely on your personal situation. Taking a bigger lump sum means less annual income for life. If you live to 90, you lose far more than you gain. If you need cash for specific purposes (paying off a mortgage, for example), the commutation may be worth it.

A useful rule of thumb: if you live past approximately 12 years from retirement, you are better off keeping the full annual pension. A financial adviser (ideally one who specialises in NHS pensions) can help you model this for your specific circumstances.

Death Benefits — What Your Family Gets

The 2015 NHS Pension Scheme includes significant death benefits. These are often completely ignored when NHS staff think about their pension — but they are a major part of its total value.

If You Die While Still Working (In-Service Death)

Lump sum: 2 times your pensionable pay, paid tax-free to your nominated beneficiary

Survivor’s pension: 37.5% of the pension you had built up (or would have earned to NPA), paid to your spouse or civil partner for life

Children’s pension: 16.25% of your earned pension per child (up to two children at the same rate) until age 23 (if in full-time education)

Example:

• A Band 6 nurse aged 40 dies with £38,000 salary
• Lump sum: £38,000 × 2 = £76,000 (tax-free)
• Survivor’s pension to their spouse: approximately £8,500/year for life

If You Are Not Married

You can nominate a co-habiting partner or any person financially dependent on you to receive the lump sum. However, survivor’s pensions for unmarried partners have stricter qualifying criteria — they must prove financial dependency. Make sure your nomination form with NHSBSA is up to date.

If You Die After Retirement

A reduced pension continues to be paid to your surviving spouse or civil partner. This is 37.5% of your pension for life.

The McCloud Remedy — What It Is and What You Need to Do

This is one of the most important and most confusing topics in NHS pensions right now. NHSBSA is actively sending out letters to affected staff. Here is everything explained simply.

What Happened — The Simple Version

When the 2015 scheme launched in 2015, the government protected older staff. Anyone close to retirement was allowed to stay in their old 1995 or 2008 scheme for longer.

Younger staff had to move to the 2015 scheme straight away. They missed out on the old scheme benefits.

A firefighter called McCloud (and others) took the government to court. They argued this was age discrimination — because younger workers were treated differently. The court agreed.

What the Remedy Does

To fix the discrimination, the government made a change on 1 October 2023:

All “remedy period” service (1 April 2015 to 31 March 2022) was automatically moved back into the legacy schemes (1995 or 2008) as if the 2015 scheme had never happened for that period.

At retirement, affected staff will get to choose which scheme’s calculation gives them the better result for those remedy period years:

• The legacy scheme (1995 or 2008) calculation, or
• The 2015 CARE scheme calculation

You choose whichever is higher. You cannot lose from McCloud — it can only benefit you or make no difference.

Are You Affected?

You are affected if all three of these apply:

1. You were employed by the NHS (or another public sector body covered by similar schemes) on or before 31 March 2012
2. You were a member of the NHS Pension Scheme on 31 March 2015
3. You had active service at any point between 1 April 2015 and 31 March 2022

If you joined the NHS after 1 April 2012, you are not affected by McCloud.

What Is the RSS Letter?

NHSBSA is currently sending out Remedy Service Statements (RSS) — letters that show your pension calculations under both options for the remedy period. This is so you can see the difference when you eventually retire.

You do not need to make a choice now. The choice happens at retirement (or when you take your pension benefits). However, if you receive an RSS letter, check it carefully and keep it safe.

If you see unexpected or confusing numbers on your RSS letter: This is common. You can contact NHSBSA to query it, or use the NHS cost claim-back scheme (up to £1,000 for accountant costs, £500 for financial adviser costs related to McCloud).

Annual Allowance and McCloud

If you were affected by McCloud, the rollback of your pension to the legacy scheme may have changed your Annual Allowance position for those years (2015–2022). If you paid an Annual Allowance charge in those years (because your pension grew beyond £60,000 in a year), you may be entitled to a refund.

HMRC has a McCloud digital service at gov.uk to correct Annual Allowance calculations. If you paid AA charges and are McCloud affected, it is worth checking this.

2015 Scheme vs 1995 and 2008 Schemes — Which Is Better?

One of the most searched questions about NHS pensions. The answer depends entirely on your situation.

Side-by-Side Comparison

Who Benefits Most From the 1995 Scheme?

• Staff who earn significantly more at the end of their career than at the start — because it is based on final salary, which captures peak earnings
• Staff who have had large salary jumps in later career (Band 7, 8a, 8b roles)
• Staff who value the automatic lump sum (3× pension)
• Staff retiring close to age 60

Who Can Benefit Most From the 2015 Scheme?

• Staff with a long, steady career where salary growth is gradual — CARE captures every year equally
• Younger staff who have many decades for revaluation to compound
• Staff in roles with good early career pay but slower progression
• Staff who leave and return to the NHS multiple times

The Honest Answer

For most NHS staff currently working, you are in the 2015 scheme and that is where you will retire from. The comparison matters most for McCloud-affected staff choosing between remedy period calculations at retirement. For everyone else, the 2015 scheme is excellent — focus your energy on understanding it well rather than worrying about what you might have had.

What Happens If You Leave the NHS or Take a Career Break?

Life happens. Many NHS staff take time away — maternity leave, career changes, moving abroad, health reasons. Here is how each scenario affects your 2015 scheme pension.

Leaving the NHS Permanently

When you leave NHS employment, your 2015 scheme pension becomes deferred. This means:

• Your accrued pension stays safe in the scheme
• It continues to be revalued each year — but at CPI only (you lose the +1.5% bonus)
• You can claim it from age 55 (rising to 57 from 2028), but early claims before NPA are reduced

You cannot take your deferred pension as a cash sum. It will pay as annual income from when you claim it.

Returning to the NHS

Within 5 years of leaving: Your previous service links up automatically to your new service. The whole period (including the gap) gets the full CPI+1.5% in-scheme revaluation. No impact from the break.

After more than 5 years: Your previous service is treated as a separate deferred benefit. It only gets CPI (not CPI+1.5%) for the break period. Your new service starts a fresh pot. You will have two separate pension calculations at retirement.

Practical tip: If you are thinking of leaving the NHS, returning within 5 years preserves the full power of revaluation on all your previous service. Leaving for 6 years instead of 4 can cost you thousands in final pension income.

Taking a Career Break (Keeping Your Job)

If your trust approves a formal career break:

• Your pension stops building during the break (no new accrual)
• Your existing pension continues with in-scheme revaluation (CPI+1.5%)
• You can buy back the lost pension by paying contributions for the break period — contact NHSBSA for a quote

Maternity Leave

Good news: your pension is protected during maternity leave.

• During paid maternity leave: contributions are taken on your actual pay (or occupational pay), but your pension accrues based on your full normal salary
• During unpaid maternity leave: no contributions are taken, but you can pay them later if you want to protect your full accrual
• The NHS employer contribution continues based on your normal salary throughout

How to Grow Your NHS Pension Beyond the Standard Rate

If you want to retire on more than your standard CARE accrual gives you, there are several options available within the NHS Pension Scheme.

1. Additional Pension (AP)

You can buy additional annual pension of up to £8,946.24 per year (2026/27 limit). You pay for it either:

• As a lump sum (one-off payment to NHS Pensions)
• As regular monthly contributions spread over your remaining career

The cost depends on your age — the younger you are, the cheaper it is per £1 of extra pension bought. Buying £2,000 of extra annual pension at age 30 costs much less than the same amount at age 55.

Additional Pension counts as pensionable income, comes with the same inflation protection, and passes to your survivors in the same way as your main pension.

2. ERRBO — Early Retirement Reduction Buy Out

Worried about the actuarial reduction if you retire before your Normal Pension Age?

ERRBO lets you pay extra contributions now to protect yourself against that reduction — effectively buying the right to retire up to 3 years early with no penalty.

This is worth considering if you are certain you want to retire at 64 rather than 67, for example. Contact NHSBSA for a personalised cost quote.

3. AVCs — Additional Voluntary Contributions

AVCs (Additional Voluntary Contributions) sit outside the main NHS scheme in a separate investment pot. They are managed by providers such as Prudential (the default NHS AVC provider).

AVCs are useful for:

• Building up extra tax-free cash at retirement (you can use AVC funds to take a larger lump sum without reducing your main pension)
• Getting additional tax relief on contributions
• Flexible withdrawal options

Unlike the main scheme, AVCs are investment-based — their value can go up or down depending on the funds chosen.

4. Salary Sacrifice for Pension

Some NHS trusts allow you to make additional pension contributions through salary sacrifice — where your salary is technically reduced and the saved National Insurance goes into your pension instead. This gives extra NI savings on top of income tax relief.

Check with your trust’s payroll or HR department whether this is available to you.

Frequently Asked Questions

What is the 2015 NHS pension scheme?

The 2015 NHS Pension Scheme is a defined benefit pension for NHS Agenda for Change staff. It works on a Career Average Revalued Earnings (CARE) basis — you earn 1/54th of your salary as pension every year, and that amount grows annually with CPI+1.5% until you retire.

Who is in the 2015 NHS pension scheme?

Everyone in NHS employment today is in the 2015 scheme. If you joined the NHS after 1 April 2015, you went into it immediately. If you joined before, you were moved into it on 1 April 2022 (subject to McCloud remedy rules for some staff).

How much pension will I get from the 2015 scheme?

It depends on your salary and how long you work. A rough guide: multiply your average annual salary by your years of service, then divide by 54. A Band 5 nurse on £32,000 for 30 years earns roughly 30 × (£32,000 ÷ 54) = approximately £17,800/year before revaluation. With revaluation over 30 years, the actual figure will be significantly higher. Use our NHS Pension Calculator for a personalised figure.

Is the 2015 NHS pension scheme a good pension?

Yes — it is one of the best pensions available in the UK. It is defined benefit (guaranteed income for life), inflation-protected, includes employer contributions of 23.7%, includes death benefits and a survivor’s pension, and comes with options to retire early or partially. No private employer pension matches it.

What is the accrual rate for the 2015 NHS pension?

The accrual rate is 1/54th of your pensionable salary per year. This is equivalent to 1.85% of your salary becoming annual pension income each year you work.

Can I retire early from the 2015 NHS pension scheme?

Yes. You can take your pension from age 55 (rising to 57 from 2028). However, taking it before your Normal Pension Age (State Pension Age, currently 67) means a reduction of approximately 5% for each year you retire early.

What is the revaluation rate in the 2015 NHS pension?

The revaluation rate is CPI + 1.5% per year, applied every 6 April. For 2025 it was 3.2% (1.7% CPI + 1.5%). In years of negative CPI, the floor is 0% before the 1.5% is added, so your pension can never decrease.

What is the McCloud remedy, and does it affect me?

The McCloud remedy fixes age discrimination that occurred when the 2015 scheme launched. It affects you if you were NHS-employed on or before 31 March 2012 and had active pension membership between 1 April 2015 and 31 March 2022. If affected, you will be given a choice at retirement between legacy scheme and 2015 scheme calculations for the remedy period — whichever is higher.

What happens to my 2015 pension if I leave the NHS?

Your pension becomes deferred and continues to grow at CPI only (losing the +1.5% bonus). You can reclaim it from age 55. If you return to the NHS within 5 years, your previous service links back up and you regain the full CPI+1.5% revaluation for all service including the gap period.

Can I opt out of the 2015 NHS pension scheme?

Yes — but for most NHS staff it would be a very poor financial decision. Opting out means losing the NHS employer contribution of 23.7% of your salary. For a Band 5 nurse, that is over £7,000 per year of free pension money lost. The only situations where opting out might be appropriate are specific ones related to Annual Allowance limits — always take professional advice before opting out.

Does the 2015 NHS pension scheme have a lump sum?

There is no automatic lump sum in the 2015 scheme (unlike the 1995 scheme which gave 3× annual pension). You can create a lump sum by commuting pension — giving up £1 of annual income to receive £12 as a one-off cash payment. The maximum tax-free amount is £268,275.

What death benefits does the 2015 scheme include?

If you die while working, your family receives a lump sum of 2× your salary plus a survivor’s pension of 37.5% of your built-up pension for your spouse or civil partner, and a children’s pension of 16.25% per child. These benefits continue to be paid regardless of how long you have been in the scheme.

Quick Recap — The Key Points

If you remember nothing else from this guide, remember these six things:

1. You earn 1/54th of your salary as pension every single year you work. It adds up faster than you think.

2. Your pension grows at CPI+1.5% every April automatically. You do not have to do anything. Compounding over 30 years makes this extremely powerful.

3. The NHS puts in 23.7% of your salary on top of what you contribute. Never give this up lightly by opting out.

4. Your Normal Pension Age is your State Pension Age — currently 67, not 60 or 65. Plan accordingly.

5. There is no automatic lump sum — but you can commute pension for cash at a rate of 12:1.

6. McCloud affects you if you joined before 31 March 2012. You cannot lose from it — it can only add to your benefits.

Calculate Your Own NHS Pension Now

Everything in this guide applies to your own situation — but the exact numbers depend on your specific salary, years of service, pay band, and retirement age.

Use our NHS Pension Calculator to enter your details and see:

• Your projected annual pension at different retirement ages
• Your current contribution rate and what it costs after tax relief
• The impact of early retirement reductions
• Lump sum options and how commutation affects your income
• McCloud remedy comparison (1995/2008 vs 2015 scheme)

→ Calculate My NHS Pension Now

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This guide is for informational purposes only and is based on NHS Pension Scheme rules as published by NHSBSA and NHS Employers for 2026/27. It is not financial advice. For decisions about opting out, commutation, or Annual Allowance, always consult a qualified independent financial adviser who specialises in NHS pensions.

Sources: NHSBSA NHS Pension Scheme member guides, NHS Employers 2026/27 contribution tier tables, HM Treasury revaluation orders, McCloud remedy guidance published by Cabinet Office.