Your NHS Pension can be reduced when you reach State Pension age if it includes a Guaranteed Minimum Pension (GMP) or is subject to National Insurance Modification (NI MOD).
GMP
If your pension includes a GMP element, the cost of paying increases is met by our Scheme between your GMP age and your State Pension age.
The GMP age for:
- women is age 60
- men is age 65
Once you reach your SPA, the cost of paying increases on the GMP element is shared between our Scheme and the Department for Work and Pensions (DWP).
Our share of the increases will be paid with your NHS Pension.
DWP will pay their share of GMP increases with your State Pension.
Scheme membership up to 5 April 1988
DWP pay all the increases.
Scheme membership from 6 April 1988 to 5 April 1997
Increases up to 3% will be paid by us. Any increases over 3% will be paid by DWP.
DWP will write to you at State Pension age to say how much it is.
Scheme membership from 6 April 1997
All the increases on membership which does not include GMP will be paid by us.
State Pension age on or after 6 April 2016
For members whose State Pension age is on or after 6 April 2016, all the increases are paid by us. DWP do not pay any of the increases.
NI MOD
NI MOD is a reduction to your pension when you reach State Pension age.
It applies to members who joined the NHS Pension Scheme after 30 June 1949 and before 1 April 1980.
We abate your pension to take into account you may also receive a State Pension. This is if you're in receipt of your State Pension or have deferred payment of this.
The reduction will be from when you become eligible to receive it.
Read more information about SPA on the retirement guide on our website.