nhs pension , 1995 section

justme111

yes I have seen it, thank you . better than rewriting it all of course but still does not change the need to re-think retirement as it would nean I would get about 1/3 of what I expected at 60.

jem16

justme111 wrote: »

yes I have seen it, thank you . better than rewriting it all of course but still does not change the need to re-think retirement as it would nean I would get about 1/3 of what I expected at 60.

I very much doubt it would only be a 1/3rd of what you expected at age 60. What calculations are you basing that on?

From what you say, you are around 40 so agues at 20 years under the old scheme which you will get at age 60 with no reduction.

Then you will have a further 20 years under the new scheme which you could still take at age 60 with an actuarial reduction. As the accrual rate for the 2015 scheme is higher than the accrual rate for the old 1995 scheme you will have more pension to base the reduction on.

justme111

I calculated it based on my superannuable pay and length of service. The eeason of it being roughly one third is that I started in the scheme at 31. Been buty.g additional years though for a few years now

jem16

justme111 wrote: »

I calculated it based on my superannuable pay and length of service.

How about showing your figures?

The eeason of it being roughly one third is that I started in the scheme at 31.

So 9/10 years of final salary service and around 20 years of CARE service. Still doesn't explain why you would only think it will be 1/3 of 30 years of final salary service.

Been buty.g additional years though for a few years now

Are you buying on a monthly basis? That contract should still continue as you have agreed to pay until age 60. Is it added years - that was stopped a while ago? It has been replaced by additional pension.

justme111

Yes , added years. I meant at 60 it would be 1/3 of what I expected. Once I reach 67 or by that time it likely will be 73 or god knows what retirement age I will have ot all of course .. if I do.

jem16

justme111 wrote: »

Yes , added years. I meant at 60 it would be 1/3 of what I expected.

Yes I know you meant age 60 but I still don't agree that you will get 1/3rd of what you were expecting.

At age 60 you will be able to take your 10 years of final salary service unreduced PLUS your 20 years of CARE service reduced. Is that not what you're thinking about when you say you'll only get 1/3?

justme111

I already taken back.my.words about 1/3d , I forgot I could take reduced 20 years of CARE .
Although if present pension plan can be changed who is to say actuarial.reductin is not going to be of such a magnitud as to make the whole exercise pointless ? Or pension age moved again (logic says it will be ) . So the earliest age to retire will be moved as well. So in the grand scheme my words about 1/3 likely to be true one way or the other.
Don't get me wrong , I was not planning to retire asap , I might have preferred to work til I die as I like my job and can do it part time . There was a straightforward option of retiring and it is not there any more .

xylophone

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Look_up_table_for_2015_arrangements_V1_03.14.pdf


http://www.nhsemployers.org/your-workforce/pay-and-reward/pensions/nhs-pension-scheme/new-2015-scheme/summary-of-the-final-agreement

then find out that goal posts have moved. ah well..

See above- "protection from further change for 25 years"

jem16

justme111 wrote: »

Although if present pension plan can be changed who is to say actuarial.reductin is not going to be of such a magnitud as to make the whole exercise pointless ?

It's not going to happen. It was promised that no more changes would be needed for 25 years.

So in the grand scheme my words about 1/3 likely to be true one way or the other.

Still don't see it but you don't provide figures to back up your assertion.

Have a look at example 5 - nearest to yours although with more years at age 40 than you currently have. However what it does say is that it would take till age 63.2 to get exactly the same as you would have got at age 60.

http://www.nhsemployers.org/~/media/Employers/Documents/Pay%20and%20reward/New%202015%20Scheme%20-%20NHS%20Pension%20Scheme%20change%20illustrations.pdf

Don't get me wrong , I was not planning to retire asap , I might have preferred to work til I die as I like my job and can do it part time . There was a straightforward option of retiring and it is not there any more .

Yes there is a straightforward option if you would just look at the facts instead of relying of guesswork or media representation.

hyubh

justme111 wrote: »

Although if present pension plan can be changed who is to say actuarial.reductin is not going to be of such a magnitud as to make the whole exercise pointless?

This would be an extreme novelty. Current actuarial reductions for early retirement are costed merely to be neutral, overall.

So in the grand scheme my words about 1/3 likely to be true one way or the other.

Even with further changes that is highly, highly unlikely. My guess (and please correct me if I'm wrong), but you aren't a particularly high earner. If so, then CARE vs. final salary will be much of a muchness, so there's just a gradual pushing back of the normal retirement age to content with.