The Scheme regulations say a pensioner cannot receive more in pension and re-employed salary than the salary earned before retirement. This is known as an earnings margin.
If this earnings margin is exceeded, the annual pension will be reduced. This is known as abatement.
In March 2020, the Department of Health and Social Care (DHSC) suspended abatement for members who have Special Class (SC) and Mental Health Officer (MHO) status and claim age retirement pension benefits before age 60.
On 1 April 2024, abatement was removed for these members.
If you're subject to abatement for ill health or interests of efficiency, you must complete a Pensioner re-employment form to tell us you're returning to NHS employment.
When will abatement apply
If you’re under your Normal Pension Age (NPA), abatement will apply if you retire on one of the following grounds and return to NHS work before your NPA:
- ill health under the previous ill health retirement arrangements
- ill health Tier 1 or Tier 2 under the current ill health retirement arrangements
- early payment of deferred benefits due to ill health
- redundancy if you retired before 1 October 2011
- early retirement in the interests of the efficiency of the service
Your pension being reduced depends on:
- your earnings while re-employed
- when you left the Scheme
- when you claimed your pension benefits
- the type of pension benefits claimed.
Abatement rules stop once you reach your NPA of the Section or Scheme which you’ve claimed your pension benefits from.
You’ll not be subject to abatement if:
- you were over your NPA when you retired
- you’re receiving redundancy benefits and retired after 30 September 2011
- you’re receiving Actuarially Reduced Early Retirement (ARER) benefits.
Read more information on working after retirement on our website.
Employed by an agency
If you’re employed by an agency to do NHS work and they’re classed as a Direction Employer, you may be subject to abatement. To check, contact NHS Pensions with details of your re-employment.