NHS Pensions - Reductions or No Reductions

TheoL

Hi Everyone

I was wondering whether anyone would mind giving me some thoughts/advice on my NHS pension status please. I would greatly value your taking the time to share your thoughts/views.

I am hoping to take early retirement next year when I will be 55. The Payroll Manager where I work gave me a quotation that did not state that there will be any reductions to the benefits.

However, a couple of my friends tell me that I may be liable to reductions as I am not employed as a nurse, even though I am a qualified nurse. Literature from the NHS Pensions Agency website would support what my friends tell me.

I asked my Payroll Manager who again tell me that I will not be liable to any reductions. I would be devastated if I cannot leave next year, but I cannot afford to do so if my pensions are reduced (about 4.5% :eek:).

Should I write to the Pensions Agency to confirm (even though their website stressed that we should go to our employers) or are there any way around this?

Please forgive the long post, and many thanks for your help. :beer:

yelf

your job title has no bearing on any reduction. The NHS pension scheme (as opposed to the New NHS pension scheme) has a NRD of 60, so yes you will receive a reduced pension. But you will receive the benfits you have accrued. If you work another 5 years you will accrue another 5 years benefits, so leaving early would obviouly reduce benefits. The NHS works on a 1/80th pension, so to receive a full pension at age 55 you would have had to start working at 15.

Just tell your payroll manager you want specific details on what you will receice next year compared to 60.

TheoL

Hi Yelf

Thank you.

Would you happen to know whether taking a Career Break for say 2 years, then taking early retirement at 57, will mean that the reductions will be applied from age 57 rather than 55? This would save me about 9% in pension reductions and 6% in lump sum reductions.

Once again, thank you.

jem16

yelf wrote: »

your job title has no bearing on any reduction. The NHS pension scheme (as opposed to the New NHS pension scheme) has a NRD of 60, so yes you will receive a reduced pension.

The job title in the NHS scheme does have a bearing. Those employed under "Special Class Situation" are entitled to retire at age 55 with no reduction.

"Nurses, midwives, health visitors, physiotherapists and mental health
officers in post before 6 March 1995 (collectively described as ‘Special
Class Status’) have the right to retire from a normal retirement age of 55 without a reduction to
their pension, subject to certain criteria being met.
If you have special class status your normal retirement age is 55."

jem16

TheoL wrote: »

Hi Yelf

Thank you.

Would you happen to know whether taking a Career Break for say 2 years, then taking early retirement at 57, will mean that the reductions will be applied from age 57 rather than 55? This would save me about 9% in pension reductions and 6% in lump sum reductions.

Once again, thank you.

If you don't retire till 57 the reductions would be applied then. However you would have 2 years less service. However you would need to check this out.

yelf

jem16 wrote: »

The job title in the NHS scheme does have a bearing. Those employed under "Special Class Situation" are entitled to retire at age 55 with no reduction.

"Nurses, midwives, health visitors, physiotherapists and mental health
officers in post before 6 March 1995 (collectively described as ‘Special
Class Status’) have the right to retire from a normal retirement age of 55 without a reduction to
their pension, subject to certain criteria being met.
If you have special class status your normal retirement age is 55."

true, but based on the wording and nature of the question it read that this was not apparent.

jem16

yelf wrote: »

true, but based on the wording and nature of the question it read that this was not apparent.

The OP mentions not working as a nurse - however there is no mention of what he/she does actually work as so i was just adding some info that may have a bearing.

Ian_W

Being a qualified nurse as the OP says in post 1 doesn't on it's own allow retirement at 55 without actuarial reduction.
Jem16 has quoted part of the qualification and their is a factsheet HERE. It should be noted that the last 5yrs before retirement must also be spend as a nurse (other other qualifying specialism) to qualify - so it doesn't seem the OP does.

TheoL

Thank you, Yelf, jem16 and Ian W for all ofyour help and information.

I work as a manager in the Performance Team. The job does not require me to be a nurse, although it does come in handy. And in the 5 years that I have been with the Trust, I did work 1 year as a Nursing Manager.

From all your kind information, it does not look like I am 'Special Class', so I am afraid that I will either have to work longer or accept the reductions!

Katykat

TheoL. If you joined the pension scheme before 1995, the special class scheme means that you can retire at 55. After 1995, unfortunately, you have to work until age 60, whether you are a nurse or not. Seeing a s you have only been with your Trust for 5 yrs, I'm afraid it seems like you will have to take a reduced pension if you want to finish at 55. It seems your payroll manager has not given you correct information. Why don't you ring your payroll department & ask to be put through to the pensions department. Ask them to send you a pension forecast, although it may take a couple of months. To be honest, if you only have 5 yrs contributions, I don't think you would get much in the way of a pension anyway.

TheoL

Hi Katykat

Thank you.

I returned to the NHS in 2004 and joined the pensions scheme in 2005. I did transfer two of my private pensions into it and got 13 years for it.

Would the fact that I was once with the superannuation scheme make any difference? Oh dear! I am clutching at straws here.