The NHS Pension
Q - How is my pension affected?
A - The NHS Pensions Agency has ruled that the value of childcare vouchers is deemed as non-pensionable pay. This means that an individual will only pay pension contribution on their salary after the childcare voucher has been deducted from their gross pay.This will mean that you will make additional savings by taking childcare vouchers through your salary, however you should also be aware that this could affect both Statutory and Pensionable benefits through:
- Ill Health Retirement
- Early Retirement
- Redundancy
- Pension transfers
- Death benefits
Q - How is my pension calculated?
A - Currently, the NHS pension benefits are based on the best 12th month period during your 3 final years of service. Providing you are not requesting child care vouchers during this period there will be no affect on your pension entitlement.However, many parents find the current financial benefits of taking childcare vouchers outweigh the possible effects on the NHS pension. It is also worth considering how long you need to take childcare vouchers and whether this may be in the assessment period for your pension.
Q - Where can I find further information?
A - The NHS Pension is currently under consultation and review. For up-to-date information please contact your Payroll/ Pensions Department or access the following website www.nhsemployers.org
Statutory Maternity Pay
Q - What is Statutory Maternity Pay (SMP)?
A - SMP is a statutory benefit you are entitled to from your employer for when you go on maternity leave. It is based on your continuous employment, average earnings and National Insurance Contributions and is calculated during a set 8-week period between 17-25 weeks of pregnancy. You must have at least 26 weeks employment with your employer, at 15 weeks before your expected due date.
NHS Maternity Policy
Every NHS Trust has it's own Maternity Policy, which will detail your entitlements to maternity leave and pay. Your entitlement to Statutory Maternity Pay (SMP) and any Occupational Maternity Pay (OMP) is dependent on your continuous service with your employer and when your baby is due, EDC, expected date of confinement.
To find out what maternity leave and pay you are entitled to please contact your NHS Childcare Co-ordinator, HR or Payroll department.
Q - How does this affect my childcare vouchers?
A - If you are taking vouchers and become pregnant, you should stop your childcare voucher order by the end of week 16 of your preganancy. SMP is calculated on NI-able income, your benefit may be affected if you continue to take childcare vouchers through your salary during the 8 week assessment period (weeks 17-25).
Q - What do I need to do?
A - Contact one of our Customer Service Representatives on 08000 430 860 and ask to speak to your processing team as soon as you can. We need to cancel your order before your 17th week of pregnancy.
Q - Will I lose out on savings?
A - Unfortunately, you may lose on the savings during the 8 week period that your SMP is calculated. This depends on your dates and when you are paid. However, please remember that both working parents are eligible to take Childcare Vouchers. Is your partner saving through their employer? For more information contact one of our Customer Service Representatives on 08000 430 860.
Q - Can I start my order again?
A - Yes, please contact one of our Customer Service Representatives on 08000 430 860 and speak to your account processing team. It depends on when you are leaving work and how much you will be earning.