NHS penson ill-health 1995 section or 2008?

jem16

Notfarfromtheborder wrote: »

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


Good luck

I don't think there's much more I can add. You've summed it up pretty well yourself.

butterfly72

I've decided to move to the 2008 section. The reason's being that realistically I'll have to work until 65/67. I'm fit and healthy and feel that I'll still want to be doing things that cost money when I'm in my 60s.


I currently work part time and want to keep it that way so to make up my pension I'll have to increase my years in work. No point in taking the 1995 at 60 if I can't then contribute to the 2015 section. If I'm right the 2008 is a slightly rate being 1/60 rather than 1/80 and it's terms look more flexible.


My only reservation is that I am buying added years, which will stop. Again due to being part time this would not have been as many years as anticipated had I been working full time. I pay 9% of my wage towards the added years, an increased regular pension payment and a regular amount into a S&S ISA (to top up my pension) so this leaves me a bit tight towards the end of the month, what with being part time. I suspect our pension contributions will increase even further in the years ahead and whilst pension planning and saving is important...so is living now and enjoying life while i'm active. Horses are my hobby of choice and they aren't cheap!!


I've also bought some additional pension which will now be payable at 65 and I expect a small income from a family business around this time too. So on the whole I'm very happy with my choice and planning. And 65 is only 22 years away afterall!!!

jem16

butterfly72 wrote: »

If I'm right the 2008 is a slightly rate being 1/60 rather than 1/80 and it's terms look more flexible.

The only difference is that the 1995 section is 1/80ths plus an automatic lump sum. The 2008 section is 1/60ths and no lump sum. If you want to have a lump sum you have to commute some of the pension. If you did commute the 2 sections are virtually identical.

However not having an automatic lump sum and higher pension can be an advantage as the commutation rate is dire.

Giddypip

butterfly72 wrote: »

I've decided to move to the 2008 section. The reason's being that realistically I'll have to work until 65/67. I'm fit and healthy and feel that I'll still want to be doing things that cost money when I'm in my 60s.

I don't think you have the choice to move to the 2008 scheme anymore. My understanding is that the 1995 and the 2008 schemes are closing and all NHS staff are moving to the 2015 scheme. The choice you have is whether to keep your 1995 or 2008 benefits or change them to the 2015 benefits.

jem16

Giddypip wrote: »

I don't think you have the choice to move to the 2008 scheme anymore. My understanding is that the 1995 and the 2008 schemes are closing and all NHS staff are moving to the 2015 scheme. The choice you have is whether to keep your 1995 or 2008 benefits or change them to the 2015 benefits.

Your understanding is wrong.

Accrued benefits with both 1995 and 2008 sections do not move to the 2015 CARE scheme. Everyone will move to the 2015 CARE scheme for future accruals only.

With Choice 2 you are being asked whether or not you wish to retain your 1995 benefits or move them to the 2008 section.

I would suggest you read this carefully.

http://www.nhsbsa.nhs.uk/Pensions/4640.aspx

[Deleted User]

paparossco wrote: »

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.

deadline is monday 16th march.,

camlo

Thanks folks, i opted to stay in 1995 when we had the 1st choice and think i am going to leave it there.
I cannot imagine working full time until I am 67 and if i do change my mind then i can retire and 'go back' like everyone else seems to!

Notfarfromtheborder

camlo wrote: »

Thanks folks, i opted to stay in 1995 when we had the 1st choice and think i am going to leave it there.
I cannot imagine working full time until I am 67 and if i do change my mind then i can retire and 'go back' like everyone else seems to!

I believe there is one further point on this, whilst when you take benefits from 1995 scheme you can indeed go back, however, you will not be able to contribute / receive employer contributions for the 2015 scheme after taking benefits from the 1995 scheme. You will however be able to pay into a personal pension.

Giddypip

jem16 wrote: »

Your understanding is wrong.

Accrued benefits with both 1995 and 2008 sections do not move to the 2015 CARE scheme. Everyone will move to the 2015 CARE scheme for future accruals only.

With Choice 2 you are being asked whether or not you wish to retain your 1995 benefits or move them to the 2008 section.

I would suggest you read this carefully.

http://www.nhsbsa.nhs.uk/Pensions/4640.aspx

Thank you. I've read that that many times now that I think I have word blindness. Understand it a bit better now though and doesn't change my decision, I personally will be remaining in the 1995 section so that I have the option of retiring at 60 if I so choose.

butterfly72

Giddypip wrote: »

Thank you. I've read that that many times now that I think I have word blindness. Understand it a bit better now though and doesn't change my decision, I personally will be remaining in the 1995 section so that I have the option of retiring at 60 if I so choose.

You will be able to take your 1995 benefits at 60 without actually retiring. The 2015 section is then normally payable at your SPA, which for me is 67.


If you choose to retire at 60 then your 2015 will be paid early but at a much reduced rate. If you take the 1995 benefits at 60 but continue to work for the NHS, then you won't be able to keep contributing to the 2015.