NHS pension

Looking for a bit of info on the 2015 pension please folks, as I have been looking at so much stuff about it my head is frazzled, plus I am not naturally pre-disposed to understanding the ruddy thing.

I have 15yrs in the 1995 pension, which if my understanding is correct is kind of frozen and a now set amount ?...which I want to collect at 60. Is that correct?.

My understanding is that in the 2015 scheme, taking that pension at 60 will be drastically reduced if I take the 2015 one at the same time, as it is to be collected at 67 ? I’m not moaning, just want to understand how the new one works .

If I retire at 60 , I will have contributed 10yrs in the 2015 scheme.

Anyone know how much I will lose taking this at 60 and not 67 and how it effects any lump sum from that scheme ?.

My intention is to retire and then possibly go back part time to wind down the whole working malarki.

Thanks for any info.
Yep...still at it, working out how to retire early.:D....... Going to have to rethink that scenario as have been screwed over by the company. A work in progress.

Comments

  • justme111
    justme111 Posts: 3,508
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    to the best of my knowledge:
    -yes. it is not completely "frozen" because it increases with inflation+ dynamizing factor is applied increasing it further.
    -yes. I calculated the reduction to be roughly of 30% for my planning purposes. You may want it more detailed ( although I doubt so) - contact NHSBSA and ask or look for the table of early retirement actuarial reductions on their website if you do.
    there is no lump sum with the 2015 so there is nothing to affect. Unless you give up part of your pension for it on not so good conditions. It does not affect your 1995's lump sum.
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • calicocat
    calicocat Posts: 5,698
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    Thanks, I hadn’t taken note there was no lump with the 2015, so that’s no1.fact I haven’t taken on board for a start. It is becoming less attractive. I seem to have a full on mental block for pensions. Manage the rest of my finances ok, but now thinking am I , and going to see a IFA :).
    Yep...still at it, working out how to retire early.:D....... Going to have to rethink that scenario as have been screwed over by the company. A work in progress.
  • stoozie1
    stoozie1 Posts: 656 Forumite
    Have you done a basic LTA guesstimate total?

    If you aren't looking at going over it, then one option, which we are using for my OH is to use a SIPP which will top up the 60-67 (but my OH is 42 so we are working on 60-69) period.

    SIPP was more advantageous for us than NHS additional pension/ERRBO options due to death in service provision.
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  • stoozie1
    stoozie1 Posts: 656 Forumite
    Something is confusing me though, as 10 years service prior to age 60 at the inception of the 2015 scheme should have given you transitional protection, I thought. Am not an expert though! There are some former public sector pensions administrators on here who will hopefully be along with useful links.
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  • ggmf
    ggmf Posts: 792
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    calicocat wrote: »
    I have 15yrs in the 1995 pension, which if my understanding is correct is kind of frozen and a now set amount ?...which I want to collect at 60. Is that correct?.

    Do you have access to the on-line Total Reward Statements? If not then you can easily apply for them. (https://www.totalrewardstatements.nhs.uk/login)

    This will have all your current numbers for the 1995 and 2015 memberships.
    Pensions are uplifted by CPI annually.
    calicocat wrote: »
    My understanding is that in the 2015 scheme, taking that pension at 60 will be drastically reduced if I take the 2015 one at the same time, as it is to be collected at 67 ? I’m not moaning, just want to understand how the new one works .

    If I retire at 60 , I will have contributed 10yrs in the 2015 scheme.

    Anyone know how much I will lose taking this at 60 and not 67 and how it effects any lump sum from that scheme ?.

    These will help:

    "There is no automatic lump sum entitlement in the 2015 Scheme but you do have the option of receiving a retirement lump sum by exchanging part of your pension. If you do this you will receive £12 of retirement lump sum for every £1 of pension exchanged."

    https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/ARER%20factsheet%20%2803.2017%29%20V7.pdf

    https://www.nhsbsa.nhs.uk/sites/default/files/2017-06/Retirement%20Guide%20%28V23%29%20Print%20version%20-%2006.2017%20.pdf
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  • calicocat
    calicocat Posts: 5,698
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    ggmf wrote: »
    Do you have access to the on-line Total Reward Statements? If not then you can easily apply for them. (https://www.totalrewardstatements.nhs.uk/login)

    This will have all your current numbers for the 1995 and 2015 memberships.
    Pensions are uplifted by CPI annually.



    These will help:

    "There is no automatic lump sum entitlement in the 2015 Scheme but you do have the option of receiving a retirement lump sum by exchanging part of your pension. If you do this you will receive £12 of retirement lump sum for every £1 of pension exchanged."

    https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/ARER%20factsheet%20%2803.2017%29%20V7.pdf

    https://www.nhsbsa.nhs.uk/sites/default/files/2017-06/Retirement%20Guide%20%28V23%29%20Print%20version%20-%2006.2017%20.pdf


    Yes I have that, but this tells me what I can get at 60 ( in the 95 pension) .

    There used to be a calculator on-line for the pensions but that has disappeared now the 2015 one is in. To be honest they probably can’t say as it will likely change again.

    I have tried to work it out, and I think ...think.. I will lose 30% in that scheme leaving at 60, which I am prepared to do.

    Thanks for the replies, sorry for late reply as I have been on shifts.
    Yep...still at it, working out how to retire early.:D....... Going to have to rethink that scenario as have been screwed over by the company. A work in progress.
  • calicocat
    calicocat Posts: 5,698
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    stoozie1 wrote: »
    Something is confusing me though, as 10 years service prior to age 60 at the inception of the 2015 scheme should have given you transitional protection, I thought. Am not an expert though! There are some former public sector pensions administrators on here who will hopefully be along with useful links.

    Yes I get protection for that part, but my years service won’t make that viable. I was trying to work out the new pension and what that will be worth and at what ages as I want to leave way before 67. ! Or certainly full time.
    Yep...still at it, working out how to retire early.:D....... Going to have to rethink that scenario as have been screwed over by the company. A work in progress.
  • elly68
    elly68 Posts: 2,516
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    hi u are also allowe to make overpayments to reduce age 68 as I am down to retirement at 65 ,so u would only be hit with 5 years of reduced pension think its 5% per year over 60 ???
    So did well on the cc front mortgage bashing next .car finishes in 3 payments .This year gonna swim in lochs and under a waterfallKeep painting try and make it my semi retired career
  • Hello; can you make OPs into the 2015 scheme to reduce retirement age? I’m currently making additional payments but didn’t say anything about retiring possibly earlier???
  • saucer
    saucer Posts: 412
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    edited 25 January 2018 at 4:53PM
    This is what you need louloubelle
    https://www.nhsbsa.nhs.uk/sites/default/files/2017-02/ERRBO%20factsheet-20160309-%28V6%29.pdf


    As far as I can see, if you have part of your pension in the 1995 scheme (but not the 2008) this is less advantageous because you are paying a premium to protect only a portion of your pension, because the 1995 scheme is payable at 60. It is definitely worth being clear what part of the scheme you were in pre 2015. I'd be confident you are in the 2008 scheme going by your age.
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