1995 NHS Pension Defer or not?

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  • Linton
    Linton Posts: 17,172 Forumite
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    Willsie01 wrote: »
    .....
    After reading the various replies to my original post I believe the question I want to ask now is: if my wife continues to work and contribute to the scheme, I understand that the additional pension she will receive is intended to be "cost neutral" to the scheme, but, will it be "benefit neutral" to her also?
    In the knowledge that this is based on her not dying before the break-even date is reached.

    Whether she gains or loses by defering depends on when she dies and so one will only know after the event.

    I assume her pension age is 60. The life expectancy for a female aged 60 of average health is around 90 so if your 22 year figure to recoup the loss is correct she should gain in simple cash terms by deferring.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    edited 14 August 2017 at 3:47PM
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    been a while since I did a 1995 exit analysis.

    The one I did had special status(55) so could be drawn early but if you took the pension you had clawback if you earned too much usually 50%PT was about the most you could do, that restriction drops at regular pension age(60).

    The person had already gone part time so accrual was lower YonY, 1/80th prorata

    The NHS pension was going up faster than the pay anyway.

    The calculation is based on the best year of the previous 3 so timing the retirement to max that is worth working out.
    ( the old trick of a late promotion and going onto nights was not an option*)

    By doing as many enhanced shifts as possible in the chosen last year of the 3 you can boost the pension by a quite a bit.

    In the end it was decided to take the pension, the extra 1/2 years service was not adding enough to bother, worked out the best month and did as many enhanced shift BH/WE as possible, that got more than the extra 1/2 years would have got.


    Took the month off to avoid all the employment law issue of continuous employment

    Went back on zero hours, worked when they wanted not when the NHS wanted..

    money coming in, go to work when you want, when it looked like snow stay at home.

    best thing ever as the job was quite a stressful one and management in some parts of the NHS is a mess just making things worse.


    (* the way the scheme works it is possible to enhance the pension up to 60% from base pay, most will already be doing a mix of hours but with some tweaks 30% is relatively easy a bit more if you can max out sun and BH.)
  • paparossco
    paparossco Posts: 293 Forumite
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    Am I wrong in thinking that the 1995 scheme allows you to continue to contribute beyond the NPA up to 45/80ths ?
    The highest form of ignorance is when you reject something you don't know anything about.
    Wayne Dyer
  • crv1963
    crv1963 Posts: 1,372 Forumite
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    1995 scheme can accrue up to 45/80s, last 3 years giving the extra 5 years contribution, pension based on the highest paid year of the least 3 years. Don't forget the other benefits- sick pay 6mths full and 6 mths half pay if ill, death in service 2 years full pay and survivors pension of half pensionable pay at death plus children under 25 also get a 1/4 pensionable pay in addition if in training or education until they reach 25 years old.
    Once retired pension (calculated at taking maximum pension not reduced pension and increased lump sum) and new nhs earnings can't exceed total earnings of the best of the last 3yrs earnings or pension is reduced.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
  • elt85
    elt85 Posts: 1 Newbie
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    Hi Im new to this sight.. I retired November 2017 due to ill health. Do I now claim my NHS pension as im 60 in March or do I ask for deferred benefits??? all very confusing and cant get any help, and mixed messages ?? I had a letter from NHS end of January this year and suggest AW8P, but in the pensions booklet it states that is I no longer work for the NHS to complete AW240 can anyone help please..
  • Flugelhorn
    Flugelhorn Posts: 5,579 Forumite
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    I think OH did the AW8P as he had left the NHS some years before but that was 2 years ago and it may have changed. I did AW8P for deferred benefits (though was still working for NHS at the time but not contributing) - whole thing took one week to sort out
  • xylophone
    xylophone Posts: 44,425 Forumite
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    You left NHS employment in 2017 as you were in poor health but did not qualify for an ill health pension?

    You simply left your pension as a deferred pension?

    You are now about to claim your pension at age 60 because it is scheme pension age?

    https://www.nhsbsa.nhs.uk/sites/default/files/2018-05/AW8P%20%28V17%29%20-%2004.2018.pdf
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