Last chance to buy NHS added years!

RZSupra

This is my last chance to buy nhs added years, as this cannot be done after March 09. My 49th birthday is Feb09. I have expressed an interst within the deadline.

basically I want to know whether it's worth doing. I am on quite a high salary band but part time (.6). I can only buy 4 years (but they seem toreduce this to .6 of those years if you are pt) It would cost me 9% of salary about £370 amonth for 11 years (ie to 60). The benefits of this are about £2600 a year in pension and £8000 on the lump sum. I doesnt seem very much -it there a different pension pot which might be more lucrative.

Further more would a cheaper way be to get extra years to increase my hours eg if I went full time fror 10years I would get 4 extra years by paying 6% (although i think i would come into the 7.5% bracket forpension payment then)

And what if they get rid if the final salary scheme !

Help only 5 days to make a decision!!

KingCheeseZombie

RZSupra wrote: »

This is my last chance to buy nhs added years, as this cannot be done after March 09. My 49th birthday is Feb09. I have expressed an interst within the deadline.

basically I want to know whether it's worth doing. I am on quite a high salary band but part time (.6). I can only buy 4 years (but they seem toreduce this to .6 of those years if you are pt) It would cost me 9% of salary about £370 amonth for 11 years (ie to 60). The benefits of this are about £2600 a year in pension and £8000 on the lump sum. I doesnt seem very much -it there a different pension pot which might be more lucrative.

Is the 9% figure inclusive of your usual pension contribution or on top of your usual pension contribution? i.e. usual pension contribution of 6.5% plus extra 2.5% (total 9%) of added years or in addition to the 6.5% plus 9% (total 15.5%) of salary?

Further more would a cheaper way be to get extra years to increase my hours eg if I went full time fror 10years I would get 4 extra years by paying 6% (although i think i would come into the 7.5% bracket forpension payment then)

This depends on your own personal circumstance - if you can afford (in terms of time) to go back to work full time (WTE 1.0) then you would obviously benefit from the extra income and will only be paying an extra 1% of earnings for the additional service you would have bought with the added years - which is significantly different to the added years option - depending on your answer to the question I asked above about the added years contract.

And what if they get rid if the final salary scheme !

Help only 5 days to make a decision!!

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They won't get rid of the final salary scheme before you reach retirement age - the NHS Pension Scheme (NHSPS) has just come out of a 4 year review that established the new 60ths accrual section. The DH tried to replace final salary with Career Average then - the unions wouldn't even entertain the idea.

Besides, any changes to final benefits made between now and your 60th birthday will only effect new entrants - they cannot give existing members less favorable benefits than they were already entitled to before the changes.