Real-Life Pension Wins
Your back payment will vary depending on your current pension earnings, how long you’ve been claiming, and whether you took a larger lump sum at retirement. Below are some recent case examples that demonstrate how pension errors were identified and corrected, leading to significant increases in benefits:
1. Incorrect Hours/Sessions Recorded
Background:
Legacy (1995 & 2008) scheme benefits are based on service and pay. Employers are required to submit this information to NHS Pensions each year, but errors can sometimes occur.
Case:
We recently reviewed the records of a practice nurse whose working hours were incorrectly recorded as 23 hours per year for five years starting in the late 1990s. In reality, she was contracted to work 23 hours per week, which amounts to 1,196 hours per year. This miscalculation led to an underreporting of her service.
Outcome:
After correcting the records, the nurse’s service increased by 3 years and 24 days, resulting in:
✔️ An increase in annual pension of over £1,000
✔️ Backdated pension arrears of £4,982
✔️ An increase in the lump sum of £5,352
3. Incorrect Pensionable Earnings Recorded
Background:
In the early 2000s, some dentists' earnings were recorded incorrectly by NHS Pensions. While these issues should have been identified and corrected over time, some cases were missed.
Case:
A dentist’s earnings were underreported by £57,000, which affected their pension calculation.
Outcome:
Once corrected, the revised benefits resulted in:
✔️ Backdated pension arrears of £7,146
✔️ An increase in the lump sum of £11,900
2. Incorrect Break in Employment
Background:
In the past, employers would send employment details to NHS Pensions via paper forms. With thousands of documents exchanged, it’s not uncommon for information to go missing or be transcribed incorrectly.
Case:
A member’s records showed an 18-month gap in employment that wasn’t genuine. The member was able to provide old payslips proving they had been contributing to the pension scheme during this period.
Outcome:
NHS Pensions reinstated the missing service and revised the benefits, resulting in:
✔️ Backdated pension arrears of £7,803
✔️ An increase in the lump sum of £3,465
4. Partial Retirement Pay Miscalculation
Background:
Many NHS employees have received a pay increase over the past year. When claiming benefits under Partial Retirement rules, it’s essential that the correct pay scale is used.
Case:
A consultant’s pension was calculated using outdated pay details rather than the revised NHS Consultant Pay Scale. After identifying the error, we contacted the employer, who acknowledged the mistake and requested NHS Pensions to recalculate the benefits.
Outcome:
After the correction:
✔️ The annual pension increased by £3,456
✔️ The lump sum payment increased by £23,028