NHS Pension - Stay 1995 or go 2008

[Deleted User]

Retirement age goes to 67 with 2008 but I understand it accrues a lot quicker.

Wife has 15 years service and is 43 now.

Problem is shes been off long term sick and theres a chance she might stop work soon. Which one of these would give her best option of claiming something if she took early retirement due to illness now?

DancingBadger

Your wife doesn't have the option to choose between the two schemes. The pension choice exercise took place back in 2010; affected employees were given the option to remain in the 1995 scheme or transfer to the 2008 scheme.

If I recall correctly, the decision had to be made by August of that year and is irrevocable.

DancingBadger

Forgot to say: given her age, I would guess your wife transferred to the 2008 scheme.

Nettsmythe

There is now option 2 needs to be decided by end of March I think.From what I understand if you remain in 1995 you can retire at 60, change to the 2008 retire at 65,and the new 2015 retirement will be the same as State pension age.

kika

At 43 she has to change to new 2015 section for the rest of her time with the nhs. If you are within 10 years of retirement age for your section you don't change. The problem is do you change the benefits you've already got and get different pensions at different times. The 1995 & 2008 sections seem to be more generous for most people than the new section but its difficult to advise.

[Deleted User]

DancingBadger wrote: »

Your wife doesn't have the option to choose between the two schemes. The pension choice exercise took place back in 2010; affected employees were given the option to remain in the 1995 scheme or transfer to the 2008 scheme.

If I recall correctly, the decision had to be made by August of that year and is irrevocable.

Wrong Im afraid.

The choice is happening again, closing date monday 16th march.

[Deleted User]

kika wrote: »

At 43 she has to change to new 2015 section for the rest of her time with the nhs. If you are within 10 years of retirement age for your section you don't change. The problem is do you change the benefits you've already got and get different pensions at different times. The 1995 & 2008 sections seem to be more generous for most people than the new section but its difficult to advise.

Yes everyone goes to 2015 from now. This is purely for up to now - stay with 1995 or go to 2008.

Specifically interested in the choices for ill health retirement of these two options.

Also, 67 is the age shes been given. Break even is 63-64.

Always a bit wary that they're giving you the choice to change. Usually find its better to say no thanks.

[Deleted User]

Ah. I was looking at the ill-health tier 2. Basically, this is where you get credited with 2/3rds of the years up until retirement age if you have retire on ill health.

With 1995, it would be 60, so 18 years x 2/3 is 12 years. With 2008, its 67, so 25 x 2/3 = almost 17 years so 5 more years.

BUT if you move to 2005 and retire on ill health within 12 months they still use 60 as the age. Seems fair enough I guess.

kika

If someone is eligible for ill health would they be better going sooner ie at 60 under 1995 section?