Thousands of NHS staff across the UK may be entitled to a refund on their pension contributions, and many don’t yet realise it. If you’ve worked part‑time, taken maternity leave, been off sick, or had any period of reduced pay in recent years, you could be among those affected.
A series of changes to NHS pension scheme contribution rules has resulted in some members being incorrectly charged higher contribution rates than they should have been.
The good news is that refunds can be claimed, but only if you take action.
This issue affects both officers and practitioners, and spans England, Wales, Scotland and Northern Ireland.
Here’s what you need to know, what’s gone wrong, and how to make sure you don’t miss out on money that may be owed to you.
How this came about
For many years, NHS pension contribution tiers for most staff (other than GPs) were based on whole‑time equivalent (WTE) pay. This meant that even if you worked part‑time or your actual pay dropped, for example, during maternity leave or sick leave, your contribution tier was still calculated as if you were earning your full WTE salary.
GPs were treated slightly differently, but the effect was similar. During periods of reduced pay, their contribution tier was based on deemed (unreduced) pay rather than what they were actually earning.
This system created a clear problem. When your real income fell, your pension contributions didn’t fall with it. Many members ended up paying more than they should have.
To address this, the rules were changed across the UK to base contribution tiers on actual pensionable pay rather than WTE or deemed pay. However, the timing of these changes and the consistency of their implementation vary by nation.
When the rules changed
The shift to using actual pensionable pay happened at different times across the UK:
- England and Wales: Part‑time members moved to actual pensionable pay in October 2022. However, some members on reduced pay for other reasons may still not have had their pay corrected.
- Northern Ireland: Contributions moved to actual pay from 1 November 2022.
- Scotland: The change took effect from 1 October 2023.
Crucially, the updated rules apply not only to part‑time staff but also to anyone whose pay was reduced due to maternity leave, sickness absence, or other similar circumstances. In these cases, your contribution tier should now be based on your reduced earnings.
Where the problem lies
Although employers were instructed by the NHS pension scheme to review the records of non‑GP members who had been on reduced pay, this has not been done consistently. As a result, many staff may still be paying contributions based on outdated or incorrect tiers.
For GPs, the situation is similar. Those who have been on reduced pay since the rule change should check their end‑of‑year certificates to ensure the correct tier was applied. Some GPs in England and Wales may need to resubmit Type 2 certificates to trigger a refund.
In short, if your pay dropped at any point after the rule change, there is a real possibility you overpaid.
How to check whether you’re owed a refund
The first step is simple. Contact your current or previous employer and ask them to confirm whether the correct contribution rate was applied during any period of reduced pay.
Your employer holds the payroll and pension contribution data needed to check this. In many cases, they can resolve the issue directly and arrange any refund due.
To make this easier, the BMA has created a template letter you can use when contacting your employer. So if you are a member, see the members section of their website for details.
If your employer’s response is unclear, incomplete, or unsatisfactory, and you are a BMA member, you can escalate the issue by contacting the BMA through the BMA Advice Form. They can assess your case and advise on next steps.
Nation‑specific considerations
Depending on where you work, there are additional points to be aware of:
England and Wales
Some GPs may need to resubmit end‑of‑year Type 2 certificates to ensure refunds are processed correctly.
Northern Ireland
Members can seek refunds for periods from 1 November 2022 onwards. Official guidance to employers is limited, so using the template letter is recommended.
Scotland
Refunds can be requested for periods from 1 October 2023. As with Northern Ireland, employer guidance is limited, so the template letter is helpful.
Why this matters
Pension contributions are a significant deduction from your pay. Even a small difference in tier can add up to hundreds of pounds over the course of a year. For those who have had extended periods of reduced pay, such as maternity leave, the overpayment could be substantial.
This is money you are entitled to reclaim. But refunds are not automatic. If you don’t check, you may never receive what you’re owed.
What you should do now
Here’s a simple three‑step plan:
- Review your pay history. Think back to any periods of reduced pay since the rule change in your nation.
- Contact your employer. Use the BMA template letter to request a review of your contribution tier.
- Escalate if needed. If your employer cannot resolve the issue, the BMA can help.
Final thought
The NHS pension scheme is a valuable benefit, but it’s also complex, and errors can happen. With contribution rules changing and implementation varying across the UK, many members have slipped through the cracks. Taking a few minutes now to check your records could put money back in your pocket.
At Legal and Medical, we have decades of specialist knowledge and help our clients to make sense of their NHS pension scheme benefits and how they fit into their wider finances. Get in touch and arrange to see your specialist adviser, or if you don’t already have a dedicated Legal and Medical specialist adviser, book a free initial meeting to see how we can help.
Do you think you could be due a pension contribution refund? Let us know by leaving a comment below.
This article does not provide specific advice. We would always suggest that you get specialist advice in this area.