Almost all NHS staff are now in the 2015 Career Average Revalued Earnings (CARE) pension scheme following the McCloud remedy. Here's a comprehensive guide to how it works, what you'll get, and why it's one of the best pensions in the UK.
What Is the 2015 CARE Scheme?
The NHS Pension Scheme 2015 is a Career Average Revalued Earnings (CARE) defined benefit pension. Unlike the older 1995 and 2008 schemes (which were "final salary"), the 2015 scheme builds your pension based on your average earnings throughout your career — not just your final salary.
Following the McCloud remedy in 2024, almost all active NHS Pension Scheme members were moved into the 2015 scheme from 1 April 2022 onwards. Any benefits built up in the 1995 or 2008 schemes before this date are preserved under those schemes' rules.
How Your Pension Builds Each Year
Each year, you accrue a pension "pot" equal to 1/54th of your pensionable earnings for that year. This pot is then revalued each year by CPI + 1.5% to protect against inflation.
For a Band 5 nurse earning £32,073 in 2026/27:
• Annual accrual: £32,073 ÷ 54 = £594
• This £594 is then revalued by CPI + 1.5% each year until retirement
• After 30 years of service, total pension = sum of all 30 annual accruals (each revalued from its accrual year)
The 1/54th accrual rate is more generous than many other public sector schemes (e.g., teachers get 1/57th, civil servants get 1/43.1th but with lower employer contributions).
Accrual Example Over a Career
| Year | Salary | Annual Accrual (1/54) | Revaluation Applied |
|---|---|---|---|
| Year 1 (2026/27) | £32,073 | £594 | CPI+1.5% each year to retirement |
| Year 5 | £35,500 | £657 | CPI+1.5% from year 5 onwards |
| Year 10 | £39,959 | £740 | CPI+1.5% from year 10 onwards |
| Year 20 | £52,000 | £963 | CPI+1.5% from year 20 onwards |
| Year 30 | £65,000 | £1,204 | CPI+1.5% from year 30 onwards |
Salary progression assumes normal career development including promotions. Each year's accrual is separately revalued, creating a layered pension.
Normal Pension Age (NPA)
In the 2015 scheme, your Normal Pension Age equals your State Pension Age (SPA). For most current NHS staff, this is:
• Born 1970–1977: NPA = 67
• Born 1978 onwards: NPA = 68 (subject to future reviews)
You can take your pension early (from age 55, rising to 57 from 2028), but it will be reduced by approximately 5% for each year before your NPA. You can also defer beyond NPA for an increased pension.
This is less generous than the 1995 scheme (NPA 60) and the 2008 scheme (NPA 65). If you have benefits in those older schemes, they retain their original NPA.
CPI + 1.5% Revaluation — Why It Matters
The annual revaluation of CPI + 1.5% is one of the most valuable features of the 2015 scheme. It means your accrued pension grows faster than inflation every year you're still building it.
With CPI averaging 2–3%, your pension pots grow at 3.5–4.5% annually. Over a 30-year career, this compounding is substantial:
• £594 accrued in year 1, revalued at 3.5%/year for 30 years ≈ £1,668
• Without revaluation, that same £594 would buy much less in 30 years
After retirement, your pension increases by CPI only (not CPI + 1.5%), which still provides full inflation protection.
ℹ️Why "CARE" Is Still Excellent — Many people assume CARE is worse than final salary. For staff who remain in the same band throughout their career, CARE can actually produce a lower pension. But for staff who progress through bands (the majority), the difference is smaller than expected — and the CPI+1.5% revaluation is extremely generous by any standard.
Tax-Free Lump Sum
Unlike the 1995 scheme (which had an automatic lump sum), the 2015 scheme does not provide a separate lump sum. However, you can commute (exchange) some of your annual pension for a tax-free lump sum at a rate of £12 lump sum for every £1 of pension given up.
Example: If your annual pension at retirement is £20,000, you could give up £2,500/year to receive a £30,000 tax-free lump sum. Your ongoing pension would then be £17,500/year.
The maximum lump sum is 25% of the capital value of your pension benefits (HMRC rules).
Death Benefits
The 2015 scheme provides significant death benefits:
• Death in service: Lump sum of 2× your pensionable pay, paid to your nominated beneficiary
• Death in retirement: Your surviving spouse/civil partner receives 37.5% of your pension for life
• Death within 5 years of retirement: The balance of 5 years' pension is paid as a lump sum
• Children's pension: Available for dependent children
It's essential to keep your nomination form up to date via the NHS Pensions website (or your ESR account) to ensure benefits go to the right person.
The McCloud Remedy — What Changed
The McCloud remedy addressed age discrimination in the transition from older schemes to the 2015 scheme. Under the remedy:
• All members moved to the 2015 scheme from 1 April 2022
• For the "remedy period" (1 April 2015 – 31 March 2022), eligible members can choose whether benefits are calculated under the old scheme or the 2015 scheme
• NHS Pensions will automatically calculate both options and apply whichever is better for you
• You'll receive a Remediable Service Statement (RSS) showing both options
If you were a member before 1 April 2012, you're likely to benefit from the remedy. Check your Annual Benefit Statement for details.
How Much Is the Pension Worth in Total Reward?
The employer contribution to the NHS Pension Scheme is 23.7% of your pensionable pay. Combined with your own contributions (7.1–12.5%), the total pension investment is 30.8–36.2% of your salary.
For a Band 5 nurse earning £32,073:
• Your contribution: £2,662/year (8.3%)
• Employer contribution: £7,601/year (23.7%)
• Total pension investment: £10,263/year (32.0%)
No private sector employer typically matches this level of pension provision. The employer contribution alone is worth more than most private sector total pension packages.