NHS Pension Question

Pipjo

Hi

I just had a letter from NHS Pension.

As I have returned after a break of a few years home educating my disabled child I am now repaying into my pension. I had 8 years pay in their at pro rata. Now I have returned on half time.

NHS pensions have written to me to say I am now on 2008 Section of the NHS Pension Scheme. I was on the 1995 Section but because I had a career break as a carer (job kept open so did not hand notice in).

NHS Pension giving me an option to defer my 8 years pension under 1995 Section onto 2008 section.

Any help advice what does moving the 8 years mean?
Why can't I restart back under 1995 Section?
Is 1995 Pension better that 2008 and visa versa?

jem16

Pipjo wrote: »

Any help advice what does moving the 8 years mean?

It means that your 8 years would move to the 2008 section instead of remaining in the 1995 section. You can choose not to move them and your 1995 service would be deferred meaning you could collect that part at age 60.

Why can't I restart back under 1995 Section?

The rules don't permit it. You would only be able to rejoin the 1995 section if the break was less than a certain amount. I believe the break allowed is 5 years.

Is 1995 Pension better that 2008 and visa versa?

Main differences are the retiral age and the way the benefits are calculated. Under the 1995 scheme retiral age is 60 and it's an 1/80ths scheme with an automatic lump sum of 3 times annual pension. With the 2008 section retiral age is 65 and it's a 1/60ths scheme with no automatic lump sum.

Suggest you read about it here and decide what's important for you.

http://www.nhsbsa.nhs.uk/Documents/Pensions/SD_Guide_(V12_3)_08_2014.pdf

Pipjo

Thanks Jem

I thought as I was off as a 'carer' I would have retained my old pension as it was not a holiday break etc

Does anyone know if I can buy back years under 1995 section?

I started in 1991 and was miss sold a private pension. Every one of my friends got compensation and reentered NHS (I found this out years later). As I left private pension 7 months later as realised I was miss sold I lost the chance of any compensation as never restarted NHS pension until 1995 (yes rejoined a month after 1995 came in and missed out retiring at 55 )

Can I buy back years under 1995 Pension to try and build up the years as 8 years is peanuts!

jem16

Pipjo wrote: »

Thanks Jem

I thought as I was off as a 'carer' I would have retained my old pension as it was not a holiday break etc

Unfortunately I don't think the reason for the break matters, it's the length of it that counts.

From April 2015 the CARE scheme starts.

Does anyone know if I can buy back years under 1995 section?

You cannot now back buy years under any section. Only thing available is buying Added Pension.

Pipjo

Thanks Jem.

Does this mean if I stay on the old 1995 I have to retire to get the lump sum at 60 years old? As this only equiv to a couple months wages. Then wait until 65 years to get the final pension for now until 60 which will be the longer amount of time paying in!

I notice if I transfer not only do I lose lump sum the annual payments are lower and they will only give me 5.5 years worth of pension on 2008 Pension so I lose 2 years of pension? What?

Pipjo

Thanks Jem.

Does this mean if I stay on the old 1995 I have to retire to get the lump sum at 60 years old? As this only equiv to a couple months wages. Then wait until 65 years to get the final pension for now until 60 which will be the longer amount of time paying in!

I notice if I transfer not only do I lose lump sum the annual payments are lower and they will only give me 5.5 years worth of pension on 2008 Pension so I lose 2 years of pension? What?

jem16

Pipjo wrote: »

Thanks Jem.

Does this mean if I stay on the old 1995 I have to retire to get the lump sum at 60 years old? As this only equiv to a couple months wages. Then wait until 65 years to get the final pension for now until 60 which will be the longer amount of time paying in!

No you would not have to retire if you don't want to. The 1995 section service becomes deferred and you can take it at age 60 whether or not you have retired.

I notice if I transfer not only do I lose lump sum the annual payments are lower and they will only give me 5.5 years worth of pension on 2008 Pension so I lose 2 years of pension? What?

You don't lose the lump sum as such. With the 2008 section the annual pension is higher and you can then commute some of that pension to get a lump sum. Although to be honest commuting at 12:1 is dire and not to be recommended. You're better keeping the higher pension.

8 years service in 1995 section with say £30k salary would give 8/80ths which is £3000 annual pension plus £9k lump sum.

5.5 years service in 2008 section with £30k salary would give 5.5/60ths which is £2750 and no automatic lump sum.

If that's the case I would leave it in the 1995 section as you will get more 5 years earlier.

Are you sure you've got your figures correct? You mentioned 8 years pay at pro rata - were you part-time for those 8 years? If so you won't have 8 years service. How part-time were you?

Pipjo

Thanks again Jem! You know your stuff:)

I just relooked at letter and I was reading the last page only. Which is the 2005 section. It says 8 years and annual pension of 4.5K a year at 65.

Under 1995 I will get annual pension of 5K and the lump sum of 16K. It says I was their 11 yrs (not 8yrs sorry that is what they will pay me if I transfer to 2008 scheme was confused before).

I was out of work 5 years and 10 months. Does this mean I am 10 months over the limit to stay in 1995 section? There is another complication to this though! I was due back to work on the 5 years exactly! However my line manager sacked me (as I requested to work school time only). I took it to a solicitor and I had grounds under disability discrimination...they took me back but that is why the 5 years lapsed! It was not my fault I wanted to return back in time

jem16

Pipjo wrote: »

Thanks again Jem! You know your stuff:)

I just relooked at letter and I was reading the last page only. Which is the 2005 section. It says 8 years and annual pension of 4.5K a year at 65.

Under 1995 I will get annual pension of 5K and the lump sum of 16K. It says I was their 11 yrs (not 8yrs sorry that is what they will pay me if I transfer to 2008 scheme was confused before).

If those figures are correct, I can't see any benefit from moving your 1995 section service.

I was out of work 5 years and 10 months. Does this mean I am 10 months over the limit to stay in 1995 section? There is another complication to this though! I was due back to work on the 5 years exactly! However my line manager sacked me (as I requested to work school time only). I took it to a solicitor and I had grounds under disability discrimination...they took me back but that is why the 5 years lapsed! It was not my fault I wanted to return back in time

Look at the flow chart on the earlier link I gave you. A break in membership of 5 years or more means you have to join the 2008 section. So yes 10 months later means you can't.

However, as from April 2015, the scheme changes again to a CARE scheme. So unless you were age 50 by April 2012 I can't see it will make much difference whether you now join the 2008 section or rejoin the 1995 section.

Pipjo

Ahh sorry I thought CARE scheme was to help carers not lose out due to having to care for disabled family etc I see! I was 40 in 2012 so not even close!

I will try link again as couldn't work it earlier. Thanks Jem

kangoora

Pipjo wrote: »

Thanks again Jem! You know your stuff:)

I just relooked at letter and I was reading the last page only. Which is the 2005 section. It says 8 years and annual pension of 4.5K a year at 65.

Under 1995 I will get annual pension of 5K and the lump sum of 16K. It says I was their 11 yrs (not 8yrs sorry that is what they will pay me if I transfer to 2008 scheme was confused before).

I was out of work 5 years and 10 months. Does this mean I am 10 months over the limit to stay in 1995 section? There is another complication to this though! I was due back to work on the 5 years exactly! However my line manager sacked me (as I requested to work school time only). I took it to a solicitor and I had grounds under disability discrimination...they took me back but that is why the 5 years lapsed! It was not my fault I wanted to return back in time

I suppose you might have grounds to contest being automatically having to join the 2008 scheme if the only reason you couldn't re-join the 1995 scheme was because of your sacking and eventual re-instatement under the disability discrimination laws.

You'd need to a) understand if 1995 scheme is better for you (it looks that way but not sure) and b) speak to a solicitor, maybe the same one?