can they change NHS pension overnight? from Final salary to Average salary?

chris_m

Andy_L wrote: »

Thats one of those "bloke said, down the pub" statements - Annacedotally i've never seen it happen & i'm unawae of any evidence it's common.

I've definitely seen it happen. A previous boss of mine took early release with very nice terms, and was promoted less than a year before he went - after the release was agreed. Can't be 100% certain but I'm pretty sure it happened with other people in the same situation.

newleaf

dunstonh wrote: »

Career average is based on your period of membership in the career average scheme. Not your career average whilst you were not in the scheme....


... In the other pensions that have gone career average, its always been based on the period of membership in that version. Not beforehand. Effectively what will happen is that you will have two schemes. One will contain your old benefits accrued and indexed and the new one will be based on career average from that point forward. Given your age, its unlikely to make much difference as you are likely to be at or near the peak of your earnings on your career path already.

Thanks for explaining that bit, it was something I didn't understand.

jem16

dunstonh wrote: »

The main losers are the professions that used to "reward" people by promoting them in the last 2-3 years to a higher paid job so they could suddenly boost their pensionable income. Apparently quite common in the Govt backed schemes.

Never seen that happen in teaching. However just in case I'd better get my application in for that HT post.

dunstonh

Thats one of those "bloke said, down the pub" statements - Annacedotally i've never seen it happen & i'm unawae of any evidence it's common.

I did wonder if it was a Yes Prime Minister based myth.

Soubrette

Andy_L wrote: »

Thats one of those "bloke said, down the pub" statements - Annacedotally i've never seen it happen & i'm unawae of any evidence it's common.

My daughter's head teacher in junior school - had been a deputy for a number of years at a nearby junior, obviously said the right thing at interview and got the headship - took early retirement two years later.

Bit of a bummer for the school actually She spent the whole two years worried about people suing the school (no more tennis at break as you could injure someone eye etc) and never really engaged with the staff.

I don't know how common it is though.

markeymark

quick question, hope it doesnt sound daft, when they change to career average, will this mean the average from when the new scheme starts?

hugheskevi

quick question, hope it doesnt sound daft, when they change to career average, will this mean the average from when the new scheme starts?

A typical career average works by taking your salary each year, multiplying it by an accrual factor, and then increasing that number by prices each year until the pension is drawn. So yes, it would be your average earnings from when the new scheme starts.

For example, let's say you worked somewhere for 3 years then left to work elsewhere. You earnt £18,000 £20,000 and £25,000 and the accrual rate was set at 1/43 (which is the current rate for the only public sector career average scheme, applying for new civil servants) and inflation is 2.5%

At the end of the 3 year period you would get:

Year 1: £18,000 x 1/43 = £418.60 x 2.5% x 2.5% = £439.79
Year 2: £20,000 x 1/43 = £465.12 x 2.5% = £476.75
Year 3: £25,000 x 1/43 = £581 .40

You add all that together, £1,497.94 p/a, and each year it increases in line with prices, until your pension comes into payment, likely to be age 65 in a new scheme or perhaps a little higher, with the choice to take it earlier at a reduced rate.

Wornoutnurse

newleaf wrote: »

I don't know where you have got this information from?
I certainly haven't seen it anywhere.

It was in todays Daily Mail. There was a table for calculating the age at which the State Pension will now be payable and also some text descriing the change in the NHS scheme from 12th April 2012, which affects all current staff.

I've made an appointment with a financial advisor next week, looks like I'll be retiring on my 58th birthday.

Thanks to those of you who have tried to explain all this to me, unfortunately I'm pretty dumb at tax, pensions etc, hence the appointment!

jem16

Wornoutnurse wrote: »

It was in todays Daily Mail.

Explains it all.

sleepless_saver

Wornoutnurse wrote: »

It was in todays Daily Mail. There was a table for calculating the age at which the State Pension will now be payable and also some text descriing the change in the NHS scheme from 12th April 2012, which affects all current staff.

I've made an appointment with a financial advisor next week, looks like I'll be retiring on my 58th birthday.

Thanks to those of you who have tried to explain all this to me, unfortunately I'm pretty dumb at tax, pensions etc, hence the appointment!

Is it an appointment with an independent financial adviser (www.unbiased.co.uk) or a financial adviser who can only recommend the product of their employer?

As a number of posters have already tried to explain to you, the 20 years you already have will remain as final salary years. There is really no reason to rush into retirement just because the scheme may change in 2012 so that service from 2012 accrues pension on a career average basis. All you will do if you go early is end up with less pension than you would have got otherwise.