NHS Preserved Pension

Bigredcat

I was down banded in 2010 as part of a department restructuring, I am still working in the same NHS job now but at the lower band.
At the time of my down banding I asked for my pension to be preserved which I believe saved my pension at the higher pay scale.
As I am approaching my retirement age can anyone explain to me how my pension will be calculated?
Will I receive a single pension which combines my years at the higher pay scale with the years worked at the lower band or will I receive two separate pensions and lump sums calculated for both periods of employment.
Many thanks for any clarification

morgan17

I was in your exact position when I took my pension from the NHS pension in 2014 and can confirm that 2 separate calculations are made and then these two figures are combined to produce your final pension. Hope that this has been helpful.Good luck for your retirement
Carol

System

Hi

"Will I receive a single pension which combines my years at the higher pay scale with the years worked at the lower band or will I receive two separate pensions and lump sums calculated for both periods of employment."

YES.

It is quite complex not knowing how long you had been a member before going into a preserved benefit status, and the pay used in the calculation can be,

Final Years Pay
Best of the Last 3 Years
Average of 3 consecutive years in the previous 10 years

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/101029_NHSB_factsheet_Pensionable_and_Reckonable_Pay_(2).pdf

and then adjusted for inflation, CPI I suspect.

Followed by the calculation for your current using your annual pay.

If they both have the same retirement date then expect 2 letters and choices, and then the 2 amounts added together and paid as 1 for simple PAYE administration.

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I suggest you read the bit about...

""What is Voluntary Pay Protection?
If your earnings have reduced because you’ve moved to a job that pays less, you have a one-off chance to protect your higher pay.
To do this you must have reached minimum pension age and your
pay must be at least 10 percent less.""

missile

My wife has just requested an estimate of what her pension will be at retirement. Perhaps you should do the same?

Bigredcat

I didn't know I could do that before I actually decide to retire. Thank you for this help.