NHS Choice 2.... what are people doing?

richee1

I've just received my Choice 2 paper work, another opportunity to move from the 1995 to the 2008 pension offer.

I've been in the NHS for 8 years but have another 35 years to go before I'm eligible for retirement (!) - it makes making the decision impossible, my national pensionable age is actually 68.

I'm an allied health professional/ manager so I dont necessarily know if I will be in the NHS forever - actually with the way things are going in my sector it looks like I wont be working for the NHS for very much longer!! On that basis I've been told its in my best interest to stay on my current scheme and keep as it is if I go working for the third/private sector.

However *if* one was likely to stay in the NHS for the next 35 years I've been told the new scheme is actually better for you, especially as we are being kicked off the final salary pension plan. (Could make a sarcastic remark about there being an NHS in 35 years time but will refrain). I very rarely believe new schemes are better than old ones but this could surprise me?

It makes the decision slightly harder, especially when retirement is so far away, it makes sense to assume the ostrich position.

What is everyone who has been given the choice 2 scheme going to do or what did people do under the initial proposals?

Koicarp

I haven't got the paperwork yet (neither has my wife) but we will keep our existing entitlement in the 1995 scheme as we plan to retire early and the penalties for doing so in 2008 are much greater.

butterfly72

I'm another one that hasn't had the paper work yet. As far as I know they don't give you detailed specific information about the options like they did in the first choice. My circumstances have changed since the first choice in that I've changed speciality so have dropped a level and now work part time.


I'm not sure what I'm going to do. Most likely I'll stick in the 1995 because I'm buying added years, but to be honest I'm not even sure if they are good value anymore. I've also purchased some additional pension which is payable at 60. I'll need to find out what happens to my added years and additional pension if I don't touch it until SPA (67 for me I think - another 25 years)


On the other hand, maybe I don't need the extra years as the chances are I'll work until SPA anyway. Although, as has been pointed out its very possible that it won't be for the NHS, our service is likely to go out to tender again very shortly.


What happens to the 1995 section if you retire at SPA? Does it keep growing in line with inflation? I suppose being able to get the 1995 at 60 is a bit of a safety net.


I think I'm right in saying you can take the 1995 at 60, keep working but without contributing to the 2015 which you then draw at SPA. I think I need to go away and look at all the options and rules! We have until March to decide.

jennyred

I received mine recently. The way I understand it is that EVERYONE is moving to the new 2015 scheme from 31st March 2015 and its only what you earnt before that date that needs to be considered for moving. The main consideration is when you think you arre going to retire. If you are considering retiring early then you are better to stay on the 95 scheme bt you will have a smaller lump sum. If you transfer and then retire early you lose 5% for every year before 65. If you are planning on working to nearly state pension age then it is definately worth transferring.

This is how I have read it - I have 10 years service pre 2015 and hopefully will continue my job until I am 65 as I love what I do!

rosscouk

Hi I also read it that every-one is moving to the new 2015 scheme from 31st March 2015 and its only what you earnt before that date that needs to be considered for moving. Is that what other people have read it as?

richee1

Yes - everyone is moving across to the new scheme on 1st April 2015 regardless of their decision. Post 2015 all pensions will be based on an average income rather than the best of the last three years... or so I believe.

The choice is purely based on whether you want ALL your pension (so including contributions pre-2015) to move to the new scheme or whether you want your contributions prior to 2015 to remain on the old lump sum scheme.

It's mind boggling - I dont even understand the questions in the decision tree to help you make your decision.

I expect it to all change again in 10 years so I feel it's hardly worth asking!

susan1

Have been searching for a telephone number all day, does anyone have a clue?
Thanks

Stubod

..as I read it, those within a few years of retirement will NOT go into the new scheme....I think the cut of point is about 13 years or so...ie if you are within a few years of retirement you will stop in your existing scheme...or change from 1995 to 2008 scheme.

Q2. Will everyone be moving to the new scheme on 1 April 2015?
A. No. If you were an active member of either section of the Scheme on 1 April 2012 and on that date you were within 13 years and 5 months of your existing normal pension age you are subject to Protection arrangements. ALL other members will automatically move to the new arrangement from 1 April 2015 for future service only.
Click here for more information about the Protection arrangements.


Generally the question you have to ask yourself is "what age will I retire"...the later you leave it then it is better to transfer from the 1995 scheme to the 2008..ie the 2008 will pay out more the longer you defer your leaving age as the more you will have paid in...ie if you are retiring at 60 you are better to stay in the 1995 scheme....(I think...)

paparossco

In Scotland, the equivalent exercise will take place after the introduction of the new Scheme on 1st April 2015.


BTW, the SPPA have issued the 2014 Benefit Statement if registered for online viewing via the 'My Pension' portal.

paparossco

This just popped into my In Box from UNITE.

Please find the attached power point presentation slides and the link for the Pension Update Choice 2 https://www.youtube.com/watch?v=IkGCwEByR3c as promised.

Sorry don't know how to attach the PowerPoint file! But there is obviously information out there so speak to a rep.

Money_confused

I had a look at this earlier today, I haven't had my letter yet so I have been reading up on the nhs pensions website, plus they have a contact number for questions. Seems to me that we will all be moved to the 2015 scheme it is just whether those who are still on the 1995 scheme want to transfer over to 2008 before the transfer to 2015 in a few months or so. I stayed with the 1995 because I have MHOS and have been paying in for 24 years (so should be 28 years in terms of contributions). I am also concerned that there will be more changes over the years before I can retire (I am 42), and who says there will even be a job/nhs for me to work in. I am seriously working out the figures and wondering about deferring my 1995 scheme pension so I can take it at 55 as per the contract I entered so many years ago. By my reckoning, I will be able to overpay my mortgage to be mortgage free by 50(ish). It's tough trying to foresee the future when making these decisions!!