NHS penson ill-health 1995 section or 2008?

[Deleted User]

Wife has been member for 12 years so Im guessing shes on 1995?

Aged 42 so I think if she can get tier 2 they'll add on 2/3rs of years until retirement age. So that would be 12 years for 1995 or 15.33 for 2008 (since its 65 with this).

So for 1995, she'd get:-

24/80 (30%) of salary plus 3 times lump sum.

For 2008:-

27.33/60 (45.5%) of salary but no lump sum.

By my reckoning, even with the lump sum, it would work out better getting the 45.5%?
Is this right? (although the lump sum is tax free?)

Can you swap at all? I.e. If it was looking like she was going to retire on illhealth can you swap at last minute to get the increased benefit?

Or do the different benefits only apply from when you swap?

brewerdave

I think that you had to make the election by Feb. 2011 whether to stay with 1995 section or move to 2008 one. Once the dealine had passed think you are stuck in 1995 section.
For someone of your wife's age I believe would have been advantageous to transfer into 2008 section -are you sure that she didn't?? My wife was older and the "changeover" point for her was if she intended working beyond 63 -she didn't,so stayed in the 1995 section which was the default option.

[Deleted User]

I guess shes stayed with the default as far as I know.

Ratison

The NHS Pension is changing from 2015 so it's worth having a look on the website to find out how it will affect your wife. They seem to be running the Choice exercise again (so she could switch) but new benefits will be (for most) on the new 2015 scheme.

System

[quote=[Deleted User];discussion/5097628]Wife has been member for 12 years so Im guessing shes on 1995?

Aged 42 so I think if she can get tier 2 they'll add on 2/3rs of years until retirement age. So that would be 12 years for 1995 or 15.33 for 2008 (since its 65 with this).

So for 1995, she'd get:-

24/80 (30%) of salary plus 3 times lump sum.

For 2008:-

27.33/60 (45.5%) of salary but no lump sum.

By my reckoning, even with the lump sum, it would work out better getting the 45.5%?
Is this right? (although the lump sum is tax free?)

Can you swap at all? I.e. If it was looking like she was going to retire on illhealth can you swap at last minute to get the increased benefit?

Or do the different benefits only apply from when you swap?[/QUOTE]

Tier 2 benefits are generally better in the 2008 section as you have calculated above due to increased retirement age. Personally though I would not let that influence your wife's decision to a great degree - the fact the pension is changing in April has a much bigger influence as to whether should stay in the 95 section or move to 2008 due to retirement age. She should get a choice 2 pack soon which should explain different situations. Basically if she intends to retire later because of changes to the pension scheme she would be better off moving to 2008 section.

[Deleted User]

Any idea if there will be a choice to move from 1995 to 2008 and/or later one?

paparossco

Choices2 was due to commence about now. Check here if your wife might be eligible
https://www.nhsbsa.nhs.uk/choice2

Correct link now posted.

[Deleted User]

Ah. Deadline monday and shes just had the stuff from work. Great.
(Shes been off long term sick).

So choices again? If shes going to finsh whats the best to go with?

camlo

I am thoroughly unprepared to decide too. I am similar age to OP's wife and have amassed 22yrs so far.
Schemes are wildly different depending on when you go but I have no idea what i am going to want to do in another 20 years?!
EEK!
What have other people done?

paparossco

In my Health Board the unions are bringing in IFAs to do a 1:1 with members to help them make the right 'Choice 2' selection. Might be worth while seeing if something similar is being done in your area.

Notfarfromtheborder

camlo wrote: »

I am thoroughly unprepared to decide too. I am similar age to OP's wife and have amassed 22yrs so far.
Schemes are wildly different depending on when you go but I have no idea what i am going to want to do in another 20 years?!
EEK!
What have other people done?

What did you decide to do the first time you were given the choice?


The only reason you have a second chance is that you will be changing to 2015 scheme next month, what ever you decide to do with your accrued benefits.


You will probably not get the same benefits accruing between April 2015 and retirement under the CARE s.cheme so that is the reason for the chance to change again


DH has stayed in 1995 scheme, similar service and age to you, however, some PT work has reduced full years. As special classes she can access 1995 benefits from 55 (normal classes 60 I think), think it was 67 under 2008 for all.


My simple understanding is that should you wish to retire before say 63 1995 scheme is better, 64 / 65 then there is little difference, after 66 then 2008 scheme could be better.


There are video's on u tube that have a member of unite explaining the choice and potential upsides / downsides which could help.


There are a few on here (especially Jem) that will be able to offer more concrete advice


Good luck