Pensions

Last updated:

NHS injury benefit scheme FAQs

Changes to the NHS Injury Benefit Scheme

The NHS Injury Benefit Scheme which historically provided for the payment of either a Temporary Injury Allowance (TIA) or a Permanent Injury Benefit (PIB) has been changed with effect from 31 March 2013.

ArrowRead more on the changes

Deadline to apply

The NHS Injury Benefit scheme was closed to new applications on 31 March 2013. Find out the deadline to apply for either Temporary Injury Allowance (TIA) or Permanent Injury Benefit (PIB).

> Deadline

 

What is the NHS Injury Benefit Scheme?

The NHS Injury Benefit Scheme is an income protection scheme available to qualifying NHS employees.

The scheme is intended to provide a supplementary income to employees who suffer a temporary loss of NHS earnings through the payment of a Temporary Injury Allowance (TIA), or a permanent loss of earnings ability, through the payment of Permanent Injury Benefit (PIB).

The loss of earnings ability must be as a result of an injury or illness which is wholly or mainly attributable to the duties of your NHS employment.

The scheme may also pay benefits to a spouse and dependants if death has been caused by, or hastened by, NHS duties.


Who is covered by the NHS Injury Benefit Scheme?

Almost all NHS employees are covered by the scheme from the first day of employment until the last day of employment and membership of the NHS pension scheme is not required.

NHS employees covered by the scheme include: 

  • Employees of a NHS Trust, PCT, Health Authority (including Special and Strategic Health Authorities), or Local Health Board
  • GPs, Salaried GPs, GP Registrars, Ophthalmic Practitioners, and Dental Practitioners working for the NHS
  • Holders of honorary appointments with an NHS Employing Authority
  • Holders of NHS appointments approved by the scheme
  • Employees of certain other organisations that have been approved by the Secretary of State to be covered by the scheme (known as Direction Employers).

 

Who is not covered by the NHS Injury Benefit Scheme?

GP practice staff, GP co-operative staff, dental practice staff, APMS staff, GP and dental locums, most Direction employees, reservists, and staff working for a private or public limited company that provides a service to the NHS (ie. agency staff).



What is Temporary Injury Allowance (TIA)?

TIA is a pay supplement paid by employers/PCTs to employees on authorised absence from work with reduced pay or no pay as a result of an injury or illness incurred which is wholly or mainly attributable to NHS employment.

TIA tops up the employee’s income to 85% of pre-reduction earnings.

TIA is subject to income tax and National Insurance deductions but not pension contribution deductions. TIA stops when the employee returns to work or leaves employment.

How do I apply for TIA?

You should apply directly to your Trust or PCT as entitlement to TIA is decided by your NHS employer.

If you are dissatisfied with the outcome of your application you can appeal via the relevant pensions agency’s Internal Dispute Resolution Procedure (IDRP) and ultimately to the Pensions Ombudsman.

If you need advice when applying for TIA contact the BMA on 0300 123 1233.

Who pays my TIA?

Your TIA will be paid by your employer.

What is Permanent Injury Benefit (PIB)?

PIB is a pay supplement payable in respect of eligible staff who have suffered a permanent loss of earnings ability of more than 10% as a result of an injury or illness incurred which is wholly or mainly attributable to NHS employment.

PIB can be paid if the number of hours you are able to work is permanently reduced, if you have to change to a lower paid job or if you have to leave NHS employment.

When assessing permanent loss of earnings ability the scheme’s medical examiners define permanence as lasting until age 65.

How do I apply for PIB?

PIB applications are made directly to the relevant pensions agency on form AW13 (in England and Wales), form INJ1 (in Scotland) or form PIB1 (in Northern Ireland).
If you are dissatisfied with the outcome of your application you can appeal via the relevant pensions agency’s Internal Dispute Resolution Procedure (IDRP) and ultimately to the Pensions Ombudsman.

If you need help with the IDRP or the Pensions Ombudsman contact the BMA Pensions Department.

How much PIB will I receive?

The amount of PIB awarded depends on the length of NHS service and the extent to which your earnings ability is reduced (expressed as a percentage) as determined by the NHS pension scheme’s medical examiners.

You may have a successful claim for PIB but, because of income received from other sources, you will receive no actual payment from the scheme. This does not mean that PIB will never be payable. If your condition deteriorates and with it your earning ability, or your income from a pension or social security payment stops, you can contact the relevant pensions agency for a review of the claim.

If your NHS employment ends because of the injury or illness, a lump sum may be payable. The amount of lump sum available is also expressed as a percentage of your pensionable pay but unlike PIB it is not connected to your length of service.

   Length of NHS Employment       Lump sum

 
Permanent reduction of earning ability Less than 5 years 5 to 15 years 15 to 25 years 25 years and over 12.5%
More than 10% up to 25% 15% 30% 45% 60% 12.5%
More than 25% up to 50% 40% 50% 60% 70% 25%
More than 50% up to 75% 65% 70% 75% 80% 37.5%
More than 75% 85% 85% 85% 85% 50%

When will my PIB start?

PIB will usually be backdated to the start of the reduction in your earnings or earnings ability. If you remain in NHS employment on lower pay PIB will be paid from the date that your earnings permanently reduce. If you terminate your employment, PIB will be paid from the day after the termination of employment.

 

When will my PIB cease?

PIB is payable for life.

However, you may have a successful claim for PIB but, because of income received from other sources, you will receive no actual payment from the scheme. This does not mean that PIB will never be payable. If your condition deteriorates and with it your earning ability, or your income from a pension or social security payment stops, you can contact the relevant pensions agency for a review of the claim.

 

Do special arrangements apply for junior doctors who are injured at work?

If you are employed as a junior doctor immediately before the date on which your earnings are reduced as a result of a qualifying injury or illness, then your TIA or PIB will be calculated with reference to the average remuneration which, in the opinion of the Secretary of State, represents the average remuneration of a general medical practitioner, or a general dental practitioner, as the case may be, of comparable age.


Can I receive my PIB in addition to my NHS pension and other state benefits?

In calculating the annual PIB allowance payable to a successful claimant, the scheme administrators are required to deduct any annual income you may be getting from pensions (NHS, SERPS or any other public or private sector pension schemes), from a range of specific social security benefits and from compensation claims.


Which social security benefits will affect the amount of PIB payable?

If you qualify for PIB you may also be eligible for a range of social security benefits (paid by the Department for Work and Pensions).

Income from these benefits is taken into account in the calculation of the allowance to be provided by the Injury Benefit Scheme. Your PIB will then be recalculated if and when social security benefits stop or start (but not if their level is adjusted).

Relevant social security benefits are:

  • Industrial Injuries Disablement Benefit - awarded if the accident is accepted by the DWP as an industrial injury and there is a loss of faculty of 14% or more.
  • Incapacity Benefit - awarded when Statutory Sick Pay has ended.
  • Reduced Earnings Allowance - awarded if income is reduced resulting from an injury or disease, which occurred before 1 October 1990.
  • Retirement Allowance - came into force in April 1989 and replaced the Reduced Earnings Allowance at State Retirement Age.
  • Severe Disablement Allowance - awarded where the disability is rated to be extreme ie. 85% disabled.

How could a successful claim for damages and compensation affect my PIB?

If you are awarded damages and compensation for the injury or illness, this will be taken into account when the level of PIB is assessed. This is because you cannot be compensated twice in respect of the same injury or illness. However, if your settlement includes a readily identifiable amount in respect of loss of earnings then only this portion of your settlement will be used to offset against PIB.

You must inform the relevant pensions agency as soon as the level of your damages or compensation claim is finalised.


Once agreed can my PIB payment be reviewed?

Once set, your PIB is only reviewed if your circumstances change. This means if: 

  • your social security benefits start or stop (but not if the payments change)
  • you reach normal pension age
  • your earning ability declines further and you ask for a review
  • you return to NHS paid employment anywhere in the UK.

 

Who pays my PIB?

Your PIB is paid by the relevant pensions agency themselves. In England and Wales this is NHS Business Services Authority, In Scotland, the Scottish Public Pensions Agency and in Northern Ireland, the HSC Pension Scheme. 

Is my PIB index linked?

Your PIB will increase each year in line with the Pensions (Increase) Act 1971. Further information on increases to benefits is available in our FAQs on Pensions Increase.

When are death benefits payable to dependents?

If you die in employment as a result of an injury or disease wholly or mainly attributable to your NHS duties or if, later in life, your death is hastened by an injury or disease sustained at work, then your spouse and dependents may qualify for death benefits from the scheme. Your spouse must have been married to you both at the time NHS employment ended and at the time of death.

How much PIB might my dependents receive?

The death benefits that are payable are based on a percentage of your pensionable pay. The percentages are shown in the table below.

 Dependents

 Amount of pension pay to be provided following death

 Widow or widower only

 45%

 Each of the first four children

10% if there is a widow or widower or

20% if there is no widow or widower

Each dependent incapacitated adult or child (i.e. someone who, regardless of age is permanently unable to earn a living due to illness or disability)

20% if there is a surviving parent or

45% if there is no surviving parent

One dependent parent

20% if there is a widow or widower or

45% if there is no widow or widower

 

Do I need to be concerned about the ongoing review of the Injury Benefit Scheme?

If you are already in receipt of PIB you will be unaffected by any changes to the current scheme.

If you are in receipt of TIA you will continue to be able to receive this benefit until you either return to work or your employment ceases.

The scheme is set to be replaced by a new arrangement in which eligibility for an injury benefit will be incorporated into the terms and conditions of NHS employment (except for self employed GPs) and both the current TIA and PIB schemes will be removed.

These changes are likely to be introduced in April 2013.

Read more about the review and the current proposals