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Added years

Should Added Years contributions be included on the Type 2 form?

If you had an active Added Years contract in 2023/24 you need to Select ‘Yes’ in box G in the Personal Details tab and then enter the % Added Years you pay in Box H.

In Box 8 of the Pay Details tab enter the total amount of added years pension contributions due to be paid during 1 April 2023 to 31 March 2024 based on your total income for the period at box 6 and the percentage in box H in the Personal Details tab.

Then in box 8a enter the amount of Added Years collected at source by your employers via your payslips for the period.

Box 8b will auto populate the amount of added years contributions under or overpaid during 2023/24. Any shortfall should be repaid to the relevant employer and any overpayment should be claimed back from the relevant employer.

In Box 8c show the amount that PCSE have collected directly from your employer for your added years contributions for the period. You can find this on your Employee Contribution Statement on PCSE Online but completion of the box is not mandatory.

What is an added years contract?

An 'Added Years Contract' was a service based benefit only available in the 1995 pensions scheme. It allowed some members to purchase additional membership. For more information on Added Years, please see the NHS Pensions Member Hub.

I am unable to input the correct Added Years percentage into Box H on the Type 2 form.

If you are unable to enter the correct Added Years % in Box H on the 2023/24 Type 2 form downloaded from the NHS Pensions website, due to the form automatically rounding the percentage up or down (e.g. 3.2% becomes 3% and 3.6% becomes 4%).

Please be aware this has been escalated to NHS BSA who are in the process of amending the form. They have advised in the meantime that the following workaround will fix the issue:

For Box H on the 2023/24 Type 2 form, the default setting for formatting this cell is set to no decimal places, this can be changed by selecting the 'Increase Decimal' button shown in the number section on the ribbon at the top of the form.

increase decimal button excel
Click to increase the number of decimal places.
How do AVCs etc get reconciled?

If you have a AVC % instalment based contract, the contributions due based on your actual earnings for the year are compared to contributions already deducted from the practice.

An adjustments is automatically calculated for the difference and applied to the practice's next monthly contractual statement

On the Type 2 form, it says not to include 'added years' paid, but to ensure that we pay them.?

"Added years" do need to be recorded in Box 7 of the form. 

It is money purchase or free standing AVCs that must not be included. 

For more information see the Type 2 guidance on the NHS Pensions website

There is no box for "added years" contributions: what do I do with them?

Added Years contributions are a type of Additional Voluntary Contributions (AVCs). 

The total amount of AVCs paid for added years, additional pension and early retirement reduction buy out (ERRBO) needs to be added in box 7. 

For more information see NHS Pensions Guidance