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  • FIRST POST
    • stoozie1
    • By stoozie1 29th Nov 17, 12:17 PM
    • 398Posts
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    stoozie1
    Anyone with a good working knowledge of new CARE schemes and members' death benefits?
    • #1
    • 29th Nov 17, 12:17 PM
    Anyone with a good working knowledge of new CARE schemes and members' death benefits? 29th Nov 17 at 12:17 PM
    I would be grateful for your thoughts.

    My partner has deferred membership in the NHS FS DB 1995 scheme and was moved to the 2015 CARE scheme in April 2015.

    Prior to this, we only had his life covered to the value of £40k of insurance, lasting up to the end of our mortgage term.

    This was because the spouse's pension in the NHS 1995 scheme would have been adequate for me and our children in the unfortunate event.

    We have tried to analyse the adequacy of this cover now the scheme has changed, but the letter we received from NHSBSA does not fit with my understanding of the provision made for spouse and dependent children from the scheme booklets.

    My understanding was that a projection up to SRA (the NRA of the new scheme) based on current earnings would be made, and that 33.75% of this would be payable as annual pension, and that an additional 33.75% of this would be payable to me to be used for the care and upkeep of the children, until they were old enough.

    My maths may be awry but the letter I received seemed to be approximately half of this amount. This would necessitate us buying increased life cover, but as this will be costly, I wanted to check first if any of the wise people on here could help first.

    I imagine I haven't given the right details, apologies if so, I will happily give more detail.
Page 1
    • xylophone
    • By xylophone 29th Nov 17, 2:43 PM
    • 23,675 Posts
    • 13,799 Thanks
    xylophone
    • #2
    • 29th Nov 17, 2:43 PM
    • #2
    • 29th Nov 17, 2:43 PM
    https://www.nhsbsa.nhs.uk/sites/default/files/2017-11/Survivors%20Guide%20%28V7%29%2011.2017.pdf

    Have you seen the above? Does it help at all?

    https://www.unison.org.uk/content/uploads/2013/06/On-line-Catalogue207333.pdf

    Has he checked his total rewards statement?

    https://www.totalrewardstatements.nhs.uk/Help/Understanding-Your-Statement
    • stoozie1
    • By stoozie1 29th Nov 17, 2:47 PM
    • 398 Posts
    • 260 Thanks
    stoozie1
    • #3
    • 29th Nov 17, 2:47 PM
    • #3
    • 29th Nov 17, 2:47 PM
    Thanks Xylophone.

    Your first link is where I got my maths from:

    A continuing
    adult dependant’s
    pension of either:
    37.5% of the
    notional7
    tier 2 ill
    health pension if
    under age 65 at
    date of death; or
    37.5% of the
    notional age
    pension if over age
    65 at date of death

    His TRS shows far far lower than either my maths or the one in the letter.
    • Silvertabby
    • By Silvertabby 29th Nov 17, 2:52 PM
    • 1,937 Posts
    • 2,455 Thanks
    Silvertabby
    • #4
    • 29th Nov 17, 2:52 PM
    • #4
    • 29th Nov 17, 2:52 PM
    My understanding was that a projection up to SRA (the NRA of the new scheme) based on current earnings would be made, and that 33.75% of this would be payable as annual pension, and that an additional 33.75% of this would be payable to me to be used for the care and upkeep of the children, until they were old enough.
    That's they way I read the chart for the 2015 Scheme too - 33.75% for you, and 33.75% for 2 or more eligible children (16.875% for one child).

    Does the projection include the deferred benefits as well?

    Edit: Forgive me if this is wrong, but you are looking at 33.75% of your husband's pension, and not his salary, aren't you? I've come across this misconception in the past (LGPS administrator).
    Last edited by Silvertabby; 29-11-2017 at 2:56 PM.
    • stoozie1
    • By stoozie1 29th Nov 17, 3:17 PM
    • 398 Posts
    • 260 Thanks
    stoozie1
    • #5
    • 29th Nov 17, 3:17 PM
    • #5
    • 29th Nov 17, 3:17 PM
    Thank you Silvertabby. I'm glad I'm not the only one thinking that!

    I think however I have discovered my mistake. Every summary I read of the reduction named the reduction as you've just said: from 50% of partner's pension ((% scheme) to 33.75%. Including a breakdown given to me by a Wesleyan FA with special knowledge of NHS pensions.

    However, now I look again, I notice the gap between the 95 and 2015 scheme is even more, as for a Death in Service it is NOT the 33.75% of the tier 2, but half of that again.

    Rather than just let this fall off the front page I'm posting in case anyone else like me has read incorrect summaries of the 95/2015 changes.
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