Leaving NHS scheme

purdyoaten

Cannot for the life of me find the answer to this.

If one was to leave NHS scheme (1995) now (too young to avail of protection where they to remain in it) - when can they claim their pension? Is it at age 60 for full pension, under 1995 rules, or at state pension age under the 2015 scheme rules?

I have been asked this by a doctor who will retire in the next few year who employs a (much) younger wife. He would rather that she could draw her NHS pension at 60 than wait until 67 - the loss is not really that much of a factor.

I have no idea if this is possible.

DancingBadger

NHS Pensions should be able to help:-

http://www.nhsbsa.nhs.uk/Pensions/2735.aspx

As you're a third party, they won't be able advise on anything other than generic queries, but I've always found them to be pretty helpful.

hugheskevi

If one was to leave NHS scheme (1995) now (too young to avail of protection where they to remain in it) - when can they claim their pension?

At the earliest age the pension can be accessed. This is currently age 55 but there is an intention to increase it to State Pension age minus 10 years.

If a member of the scheme in 2006 there may be a protected minimum pension age which is lower than age 55.

Is it at age 60 for full pension, under 1995 rules, or at state pension age under the 2015 scheme rules?

The pension under the 1995 rules will continue to be based on the 1995 rules. This applies regardless of whether or not the member leaves the scheme.

I have been asked this by a doctor who will retire in the next few year who employs a (much) younger wife. He would rather that she could draw her NHS pension at 60 than wait until 67 - the loss is not really that much of a factor.

Age 60 is the age at which the pension can be commenced without reduction for early payment, but the pension can be accessed earlier than this with actuarial reduction.

The main concern is whatever is being considered around leaving the scheme, as that has the potential to be a serious mistake.

jem16

purdyoaten wrote: »

If one was to leave NHS scheme (1995) now (too young to avail of protection where they to remain in it) - when can they claim their pension? Is it at age 60 for full pension, under 1995 rules, or at state pension age under the 2015 scheme rules?

It's age 60.

However why leave now? You can still continue with the NHS pension in the new 2015 scheme then at that point leave and take the full 1995 benefits at age 60 and the 2015 benefits also at age 60 with a reduction. Or you can take the 1995 benefits at age 60 and leave the 2015 benefits till state pension age.

hugheskevi wrote: »

If a member of the scheme in 2006 there may be a protected minimum pension age which is lower than age 55.

Not with the NHS scheme I'm afraid.

purdyoaten

hugheskevi wrote: »

At the earliest age the pension can be accessed. This is currently age 55 but there is an intention to increase it to State Pension age minus 10 years.

If a member of the scheme in 2006 there may be a protected minimum pension age which is lower than age 55.



The pension under the 1995 rules will continue to be based on the 1995 rules. This applies regardless of whether or not the member leaves the scheme.



Age 60 is the age at which the pension can be commenced without reduction for early payment, but the pension can be accessed earlier than this with actuarial reduction.

The main concern is whatever is being considered around leaving the scheme, as that has the potential to be a serious mistake.

Thank you - most helpful.

I was concerned that, even though his wife had left the scheme, she would be transferred to the 2015 scheme and the equivalent rules.

Your last sentence is well noted. The good doctor and his wife are retiring to sunnier climates in a couple of years - money is not really a concern for them.

purdyoaten

jem16 wrote: »

It's age 60.

However why leave now? You can still continue with the NHS pension in the new 2015 scheme then at that point leave and take the full 1995 benefits at age 60 and the 2015 benefits also at age 60 with a reduction. Or you can take the 1995 benefits at age 60 and leave the 2015 benefits till state pension age.

I entirely agree, and thank you for your reply. Their view is that the doctor is retiring in a couple of years. Two years under the 2015 scheme will make little material difference to them financially.

purdyoaten

DancingBadger wrote: »

NHS Pensions should be able to help:-

http://www.nhsbsa.nhs.uk/Pensions/2735.aspx

As you're a third party, they won't be able advise on anything other than generic queries, but I've always found them to be pretty helpful.

Indeed they are - I have frequent dealings with them. Unfortunately, in this case, they did not know difinitively.

jem16

purdyoaten wrote: »

Two years under the 2015 scheme will make little material difference to them financially.

Probably not but free money should never be turned down and there seems no reason not to stay in.

1995 benefits will stay in the 1995 section unless she chose to move them to the 2008 section. Only future accruals will be in the 2015 section.

This might give you the information you require.

http://www.nhsbsa.nhs.uk/4017.aspx

purdyoaten

jem16 wrote: »

Probably not but free money should never be turned down and there seems no reason not to stay in.

1995 benefits will stay in the 1995 section unless she chose to move them to the 2008 section. Only future accruals will be in the 2015 section.

This might give you the information you require.

http://www.nhsbsa.nhs.uk/4017.aspx

Thanks for that. They maintain that they don't 'want the hassle' and she won't get the 2015 scheme benefits for another 23 years!

The doctor has fixed protection - from the first time! I think they will cope

jem16

purdyoaten wrote: »

They maintain that they don't 'want the hassle' and she won't get the 2015 scheme benefits for another 23 years!

I'm not entirely sure what hassle there is in paying into your pension and collecting it 7 years later than the first lot. But hey ho....