1995 NHS Pension Query - deferred benefits

sketching83

Dear All,

I'm trying to help my mother with her retirement planning and would very much appreciate some advice.

She worked in the NHS between 1985-2002 and has around 12 years of pension contributions. She is currently 63 and hasn't started drawing on her NHS pension (she is still working outside of the NHS). I've looked in to the '1995 Section' and noticed that it is normal to retire at age 60. I wanted to ask:

1. Is it odd that she didn't receive any correspondence from NHS Pensions when she turned 60? She is 63 now and hasn't received any correspondence in the last twenty years

2. Will it be possible for her to get retrospectively paid for the 3 years she hasn't been claiming between 60-63?

In the mean time I've written a letter NHS pensions asking them asking for a statement and then we will complete the AW8P form. I tried registering her for the TRS website unsuccessfully.

many thanks in advance

xylophone

1. Is it odd that she didn't receive any correspondence from NHS Pensions when she turned 60? She is 63 now and hasn't received any correspondence in the last twenty years

It is quite possible that it was her responsibility to claim her pension at her Scheme Retirement Age.

http://www.nhsbsa.nhs.uk/Documents/Pensions/member_Deferred_Benefits_V2.0_07.2013.pdf

Certainly in one DB Scheme I know, the deferred pensioner went off into the blue clutching his "statement of deferred benefits" and an instruction to keep the scheme informed of any change of address ( just in case there should be any need for contact presumably) and to contact the administrator shortly before the pension was due for payment.

No annual statements were ever supplied.

xylophone

Has your mother obtained a new state pension statement?

https://www.gov.uk/check-state-pension

sketching83

Thank you very much Xylophone - I totally agree it was her responsibility to claim, but she is very shoddy with financial matters! I hope they'll be able to pay some of the money retrospectively

We haven't requested a state pension statement - but I will do now!

Flugelhorn

DH has just got his DB NHS deferred pension aged 60, it was very much up to him to remember to claim. I know there is no increase in the amount if you delay taking the pension on 1995 section but not sure retrospective claims ??

System

sketching83 wrote: »

Thank you very much Xylophone - I totally agree it was her responsibility to claim, but she is very shoddy with financial matters! I hope they'll be able to pay some of the money retrospectively

We haven't requested a state pension statement - but I will do now!

Hi

There wont be any retrospective payment as such, but the pension should start at a higher rate than it would have 3 years ago.

So there will be more paid per annum, but for a shorter period I presume. AAnd of course it will be taxable.

Flugelhorn

johndough wrote: »

Hi

There wont be any retrospective payment as such, but the pension should start at a higher rate than it would have 3 years ago.

So there will be more paid per annum, but for a shorter period I presume. AAnd of course it will be taxable.

The NHS 1995 scheme does not increase the benefits if taken later than 60, would do if she was still paying in but this is a deferred member. At least that is what I think page 28 means http://www.wsh.nhs.uk/Staff/NewStarterPack/CommonDocs/NHSPensionSchemeBooklet.pdf

xylophone

but she is very shoddy with financial matters!

Another thought - check that all is correct with her tax situation when her pension comes into payment.

https://www.gov.uk/personal-tax-account

Silvertabby

When she starts to draw her pension the NHS will automatically deduct 20% tax from the whole amount - until told to do otherwise by HMRC.

Even if the OP's mum is using all of her tax allowance through her salary, she still needs to speak to HMRC to tell them that she getting £X per annum NHS pension from xx/xx/xx. They will then tell NHS to use the BR tax code unstead of the default temporary code.