New NHS pension contributions calculator

Koicarp

I wrote to the DH asking when they would put up new calculators for the proposed new scheme three weeks ago. They have written back saying "in due course"! They have though sent this link: http://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_132287
for checking contributions (not what I asked for but there you go!).
I've written back to them asking when "in due course" will be as we are being asked by the unions to vote on whether we will accept the new proposals but don't have any official calculator to go on.
I had thought the DH would want to provide good detailed calculators to combat those nasty millitant unions, but it seems they do not.

Layny

If you go to the RCN web page,follow link to Pay and Conditions,then link to Pensions and you will find an up to date contribution and retirement modeller for the current offer from the government. It is free to use even if you are not a member and doesn't require a login.
Hope that helps.


Layny


p.s. as I haven't posted much on the forum it wouldn't let me put a direct link on, sorry

Andy_L

Layny wrote: »

If you go to the RCN web page,follow link to Pay and Conditions,then link to Pensions and you will find an up to date contribution and retirement modeller for the current offer from the government. It is free to use even if you are not a member and doesn't require a login.
Hope that helps.


Layny


p.s. as I haven't posted much on the forum it wouldn't let me put a direct link on, sorry

http://www.rcn.org.uk/support/pensions/retirement_modeller

Koicarp

Yes I've been using that RCN calculator, however it doesn't include lump sums carried forward from the 1995 scheme, and in all honesty I want a calculator from the provider, rather than my union.
When DH announced their previous offer they had calculators up in days, it's now more than 6 weeks since the heads of agreement for the new scheme and no official calculator, so we have to vote without one.

Layny

[FONT=&quot]Found this. Maybe it will help you work out the comparisons

The current 1995 section of the NHS pension scheme pays a pension on retirement and a lump sum equivalent to three times the value of the annual pension. More cash can be taken by giving up pension at a rate (commutation) of £1 of pension for £12 of cash subject to HMRC maximum levels.
The 2008 section of the NHS scheme does not have an automatic cash lump sum but a lump sum can be taken using the same commutation rate as in the 1995 section.
The proposed 2015 section (like the 2008 section) will not have an automatic lump sum but cash can be taken on the same arrangements as in the 1995 and 2008 sections.
In the case of a current scheme member who is ‘fully protected’ i.e. is within ten years of their normal pension age in April 2012 , they will remain in their current pension arrangements albeit they will be expected to pay any contribution increase required. If they are in the 1995 section this means that they will receive an automatic lump sum on retirement and the ability to take more cash if they want based on their pensionable service in this section.
If they are ‘fully protected’ but in the 2008 section then they will not receive an automatic lump sum but , as above, can still take cash if they wish.
If a member is in the 10 – to 13.5 year protected group they will move to the new 2015 section arrangements at some point after April 1 2015. Up to the date of that change they will continue in their present section and build up benefits as normal. So for a member of the 1995 section this means that they will continue building up final salary benefits based on a normal pension age of 60 or 55 if they are ‘special class’. The right to receive a lump sum is retained as this is a part of the 1995 section benefits. Once this person moves to the 2015 section (as we said this will be at some date after April 1 2015) they will build up future pension benefits (all their previous pension benefits have been fully protected) in this section. That is they will build benefits based on a career average basis and these benefits will have a normal pension age of 65 linked to them. The 2015 section, like the 2008 section, has no automatic lump sum attached to them.
So when this member comes to retire they will have a pension built up based on two elements;
1) Benefits in the 1995 section calculated on a final salary basis and an automatic lump sum of three times the pension with the ability of taking more cash by giving up pension and
2) Benefits in the 2015 section but with no automatic lump sum but the possibility of taking cash by giving up pension. Any benefits taken in the 2015 section before age 65, or their state pension age, (the normal pension age for this section) will be reduced because these benefits are being taken early.
The RCN modeller tries to give a comparative idea as to how current pension benefits might be compared to future benefits. To do this they convert the value of the pension lump sum (in the 1995 section) into pension in order to make a meaningful comparison. This is stated in the assumptions that accompany the modeller;
‘For the 1995 Scheme, cash has been converted to pension using a commutation factor of 12:1. This is equivalent to an accrual rate of 1/64th.’

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