nest eggNPPS is a 'final salary' pension scheme that calculates benefits according to final pensionable pay and the length of pensionable service.  Presented below is an outline of the main benefits as well as the concepts of 'pensionable pay', 'pensionable service' and 'deferred pensions'.

The main benefits of the NPPS are:

    • A pension for life, based on your final pensionable pay and pensionable service, plus a tax-free lump sum of four times’ the initial annual pension.
    • The final pension is based on 1/70 of each year of your pensionable service up to a maximum of 35 years or 35/70ths. This method is sometimes referred to as a single accrual rate.
    • The maximum pension is half pay.
    • All or part of the lump sum may be exchanged for additional pension for you only (but not in the case of an ill-health pension). Based on the current conversion scale, this would provide a total pension of up to 66% of final pensionable pay for men officers and up to 64% of that pay for women officers.
    • A lump sum death grant is payable if you are not opted out of the pension scheme when you die.  It is three times your annual pay and is paid to your spouse, civil partner or unmarried partner (if you have one) or to someone nominated by you, or otherwise to your estate.
    • You can retire and receive an immediate pension (and lump sum) at 55. The deferred pension age is 65.

To find out more about pensions including pensionable service and deferred benefits click on I want to know more about my pension benefits.


Link to Scottish Government Website