working after taking pension

masco1

My wife currently works 17 hrs per week in the NHS. She can take a full pension next year. If she returns to work, is there a limit on the hours she can do and what is the effect on her pension if she goes back to work please?
thanks

DancingBadger

There's nothing to stop your wife claiming her pension and continuing to work. Her hours won't be restricted because she's claiming a pension.

She will probably pay more tax, though, because of the extra income from her pension.

If she's old enough to claim the State Pension she'll no longer have to make National Insurance contributions.

masco1

thank you for this. I was reading about 'abatement' but I didn't understand what this actually is

xylophone

http://www.nhsbsa.nhs.uk/Documents/Pensions/Working_After_Retirement_Factsheet_(V2)_04.2012_.pdf

may be worth a look though dated 2012 - is there a later version?

Has your wife checked her State Pension situation?

Finst

I don't agree with Dancing Bear. The NHS pension does get reduced if you earn above a certain amount from the NHS.

I don't know the details, but your wife can ask the payroll or pensions department. A family member of mine is in this situation, from memory she can work roughly 2 12 hour shifts a week without a reduction to pension.

masco1

OK. She will be 55 in january and is entitled to full NHS pension under the special status in 1995 arrangements. Her current contract is 17 hrs per week but she regularly does 25 or more hrs (these are extra shifts needing to be filled). she wants to return and carry on with 17 hrs per week but with the flexibility to do more if she feels the need but doesn't want to jeopardise her pension payments.

DancingBadger

masco1 wrote: »

OK. She will be 55 in january and is entitled to full NHS pension under the special status in 1995 arrangements. Her current contract is 17 hrs per week but she regularly does 25 or more hrs (these are extra shifts needing to be filled). she wants to return and carry on with 17 hrs per week but with the flexibility to do more if she feels the need but doesn't want to jeopardise her pension payments.

Ah, I assumed you were referring to the State Pension; I didn't realise your wife is so young!

This might help:-

http://www.nhsbsa.nhs.uk/Documents/Pensions/Working_After_Retirement_Factsheet_(V2)_04.2012_.pdf

DancingBadger

Apologies, I now see Xylophone's already given you the link.

HOWMUCH

If she takes her pension then she can not work for 1 month within the NHS or she will be put back into the scheme.

highet

i assume, going by her age, that your wife is a member of the 95 scheme?? in order to claim her pension she will need to hand in her notice and resign from her job completely for at least 24 hours - taking holidays/sick leave/leave of absence doesnt count - there must be a 24 hour break in service - she can then return to employment in nhs (if they want her back, they dont have to reemploy you so best to make sure before handing in notice!!) on a new contract the terms and conditions of which are negotiable as if you are a new employee - it is common to offer 12 month fix term contracts to post retirement returnees which may or amy not be renewed. for the first 4 weeks after returning you cannot work for more than 16 hours per week (not averaged but per week)after which you are free to work as many hours as you/employer wish. pension income is added to salary for tax purposes but NI is not payable on pension income.
I assume your wife is a member of a union such as unison or RCN - they usually have a pensions officer who is pretty clued up on all this stuff
one thing to note is that due to large numbers of nhs employees opting to retire at the moment (thanks mr hunt!!!) the pensions agency is swamped at the moment and is taking longer than normal to pay out pensions even if given the normal 3 months notice of retirement date
when she rejoins the nhs she will be autoenrolled in the 2015 pension scheme unless she chooses to opt out

masco1

thanks everyone - really helpful