NHS Choice 2 - Stay in 1995 Scheme?

saucer

JPG82 wrote: »

Our plan was to purchase the extra 3 years we can (taking full pension at 65) however leave work around 62 and live off private investments that we started little over a year ago. (Hopefully).

You can't purchase additional years in the NHS pension any longer unless the contract began before April 2008. You can on the other hand buy what they call 'Additional Pension' which is a contracted benefit up to £5000 per year, based on a set payment before tax every month. This is completely independent of your salary now or in the future. It is a good benefit in my opinion, but not as good as the old Added Years facility.

butterfly72

JPG82 wrote: »

Bit of background we both have 10 years pension built up already. We both intend on staying in nhs however my future not as secure as wife's with private tendering etc (I may also move from nhs In near future to private).


That being the case would we be better in 1995 or 2008. I feel from what I've read 2008 may be better?

I also have to decide. You're right, its ok intending to stay in the NHS, but so many of the services now are up for tender, my own department included! I could be working for anyone at anytime!


Did you keep your choice pack from last time? It might give some indication of how better/worse off you might be. My circumstances have changed since the last choice, I've gone down a band and am part time now. I'm also buying Added years in the 1995, so that complicates matters. I really wish they'd given a statement with the different scenarios like last time ( I'm assuming they don't - haven't had my pack yet). Its a bit rubbish having to make decisions about your pension without all the information and forecasts. Also, they haven't even finalised all the information about the 2015 pension, so making decisions based on this is risky.

Koicarp

Plenty of information available: http://https://apps.nhsbsa.nhs.uk/choice/index.html

Sister_X

we had a recent pension talk at work. I am 49 and plan to retire at 55 (then work part time anywhere until 67 and state pension kicks in).
At our talk I was assured I could stay in 1995 scheme and retire at 55. Today my colleague says she's received a letter saying we have to change to 2015 scheme and we can keep 1995 scheme as well but can only take money saved in 1995 scheme at 55. If you take money from 2015 scheme early you will lose 5% per year. Therefore if I retire at 55 I would lose 60% of my pension accrued from 2015. (5% x12 years from 55 to 67)
I haven't received a letter yet but my colleague is only 2 months older than me.
Purhleease tell me this is not true. I am Band 6 and after paying a pension since 18 was only going to get £16k at 55. Now it looks like it will be considerably less. What are they doing to us nurses now??
Am I wrong??

mgdavid

Retiring 12 years earlier than the majority of the working population comes at a price.

JPG82

Thanks for the replies.

Saucer - the fact sheet I'm reading states "a new provision is exists which allows you to pay extra contributions so you can take pension 3 years before SPA. Is this what you are referring to?

Sister x - from my online calculations if I was to retire at 63 I would receive the same in the 2015 scheme with penalties for going early as I would if I left at 60 in 1995 scheme. Is it not similar for you?

Finally I used the choice 2 info sheets and calculator and if I'm planing to go at 63 staying in the 1995 scheme appears better for me - only just though.

jem16

Sister_X wrote: »

I haven't received a letter yet but my colleague is only 2 months older than me.
Purhleease tell me this is not true.

Are you both members of the Special Classes which allow retiral at age 55 with no reduction?

If so and you were both at least age 45 by 6th April 2012 you have full protection and you will stay on the final salary scheme until retiral at age 55.

Info here;

http://www.nhsbsa.nhs.uk/Pensions/4019.aspx

Koicarp

Sister_X wrote: »

we had a recent pension talk at work. I am 49 and plan to retire at 55 (then work part time anywhere until 67 and state pension kicks in).
At our talk I was assured I could stay in 1995 scheme and retire at 55. Today my colleague says she's received a letter saying we have to change to 2015 scheme and we can keep 1995 scheme as well but can only take money saved in 1995 scheme at 55. If you take money from 2015 scheme early you will lose 5% per year. Therefore if I retire at 55 I would lose 60% of my pension accrued from 2015. (5% x12 years from 55 to 67)
I haven't received a letter yet but my colleague is only 2 months older than me.
Purhleease tell me this is not true. I am Band 6 and after paying a pension since 18 was only going to get £16k at 55. Now it looks like it will be considerably less. What are they doing to us nurses now??
Am I wrong??

I'm band 7 toward the top end, 45 years old and 21 years service so far, my numbers are:
Pension from current scheme (at age 60):
£16,817

Pension from proposed scheme (at age 60):
£15,267

Retire at 55 and I get:
Pension from proposed scheme (at chosen retirement age):
£10,360
Amazing how many nurses are just noticing this stuff!

saucer

JPG82 wrote: »

Thanks for the replies.

Saucer - the fact sheet I'm reading states "a new provision is exists which allows you to pay extra contributions so you can take pension 3 years before SPA. Is this what you are referring to?

No I was talking about 'Additional Pension' which you will see described in the same factsheet. I hadn't noticed that bit about the 'new provision' and I don't know what it entails. Don't forget though that you can still retire and take you pre 2015 benefits at your 1995 retirement age (usually 60) and then claim your 2015 benefits unreduced at the your SPA (maybe 67). Alternatively you can take it all at 60 with the 2015 portion significantly reduced to take account for the fact that they will be paid for longer. If you use the NHS pension calculator: https://apps.nhsbsa.nhs.uk/choice/index.html
you will get a good idea of the implications:)

Oog

Nobody has mentioned the effect of the change on the lump sum. That needs factoring in and depends on what your plans are at retirement. I believe it's larger and more commutable in the 1995 scheme.