NHS Pension Choice - 1995(deferred) or 2008 section

Koicarp

Yep those figures are wrong.
The automatic lump sum is not mentioned in the "heads of agreement" though the 1:12 commutation lump sum is. So until we hear again from the unions next week it seems that they have negotiated away an offer of 1/60th + automatic lump sum, for 1/54th. The health unions are meeting next week to decide whether to put the government's offer to a vote, so it's probable that your friend's "pension choice" is best left alone until we know the outcome. They will get an automatic lump sum based on 15.5 years in the 1995 scheme, if they are transferred from that to whichever new scheme government puts us all into.

getmore4less

Don't knock the retire at 60 option

ask people in the health service in their mid-ate 50's

You can always stay on or take the pension and go back.

Also if working in a job that still has shift enhancments it is easer to boost the pension in the old scheme than it is in the new one.

Also doing acumulative totals is a bit missleading you need to account for inflation and interest

Mortgage downpayment at 65? with the low pension income?
not planning on buying a house?

LazyD

Koicarp, just to clarify, do you mean my figures or the figures we received from the nhs are wrong?

getmore4less, "You can always stay on or take the pension and go back" yes I suppose that's also another decent option, we'll have to talk about this more I suppose. So many things to consider.

In regards to getting a mortgage at 65 on a pension, it's more the situation where she will fund the down payment for another family member and live in same property. Wouldn't necessarily be in her name.

atush

Sounds unwise to me, to fund a property you don't own for someone else with a huge amt of your pension. But it is her money.

Andy_L

Koicarp wrote: »

. So until we hear again from the unions next week it seems that they have negotiated away an offer of 1/60th + automatic lump sum, for 1/54th.

AIUI the previous last offer a 1/60ths career average only but with no lump sum whilst the new offer has better accrual (1/54th) but worse indexation whilst in employment

Koicarp wrote: »

so it's probable that your friend's "pension choice" is best left alone until we know the outcome.

+1 for that bit of advice

Andy_L

LazyD wrote: »

Andy L, sorry I should have been clearer. Those figures are derived from a total of 5 times (or 10 or 20 where it says) the annual salary plus the lump sum. The figures of the annual salary and lump sum come from the documents we have received from nhs pensions.

i.e. for the line that says:

£63495 Total amount received after 5 years including lump sum of £23810 - 1995 Section

63495 is the total, minus the lump sum of 23810 is 39685, that divided by 5 is 7937. So in the case of that line the annual pension would be £7937 and the lump sum would be £23810. Same thing applies for all the other lines.

right, with you now.

You have to allow for their age though. If they stop work at 60 then the 08 scheme will only be worth ~75% of your calculation as it is reduced for paying earlier (or worth 5 years worth less as you take it earlier)

Even if they want/need to work beyond 60 the 95 scheme pension can still be taken at 60 (though lower due to 5 years less service) whilst she still continues to work (although with some confusing wrinkles over abatement if she still works for the NHS & doesn't take a pay cut)

getmore4less

Some NHS workers don't have abatement after 60 and can take pension early without reduction.