NHS pension -opt out?

BobQ

Thrugelmir wrote: »

Wouldn't do anything hasty.

A quick browse suggests that there is a scheme limit of 45 years.

Scheme contributions have to be paid until the age of 60 to retain the full benefits.

There's a restriction of 40 years service up to the age of 55.

Are you sure? If someone has qualified for a 45 year pension on what basis can they lose what they have accrued to that date? I can see that it would affect future benefits like death in service.

Thrugelmir

BobQ wrote: »

Are you sure? If someone has qualified for a 45 year pension on what basis can they lose what they have accrued to that date? I can see that it would affect future benefits like death in service.

Because the pension isn't paid in full until 60. Despite the ability to take early retirement. If were the case people would simply exit early. The double years are good recompense for what must be a challenging job. Nothing to stop someone switching role for their last 5 years of service.

Mistermeaner

missmental123 wrote: »

I have paid into NHS pension since 1985. I have MHO status so after 20 years service, the years are doubled. So in effect I think I have the equivalent of 44 years service.I have been told that after 30 years my pension contributions don't count to my final figure. I'm considering opting out for 2 years and use the £340 a month to carry out essential refurbishment of our house.
I have made an appointment with our pensions officer to discuss it but just wanting others opinions or advice.
Am I crazy if I opt out ? My husband is also in the same scheme but he is anti me considering this!
My aim is to retire in 36 months time, age 55.
Thank you.

fair play to you but every time i read something like this I am shocked at how ridiculous public sector pensions are

Don't know what your salary is and therefore what your pension will be but retiring at 55 with having worked in the NHS since age 32 (23 years counted above) to get a final salary pension with an accrued benefit off 44+ years is just simply ridiculous

Purely a guess but if your final salary pension is around 2/3 (66%) of your salary you would have had to put in around 55% of your salary into an equivalent DC scheme


e.g. Salary £100K

pension £66K

pension pot required at 3% annunity rate = £2.2mil

to accrue £2.2mil over 23 years with a generous 5% annualised growth rate one would have had to save £55K per annum

or 55% of their salary

(NOTE the maths is roughly the same no matter what the salary)

I expect contributions are significantly below this amount


Perhaps keep working and paying into the scheme as that would be fairer to the tax payers

OldBeanz

I have no issue with staff who have to deal with disturbed people for 30 years drawing an enhance pension.

missmental123

I have actually worked in as a mental health nurse & paid into this pension since 1985 since I was age 19. The rationale for retirement age 55 for mental health staff was due to the stress of the job and premature death!? Nurses have have only had one 1% pay rise since 2010.
My earnings are increased because I work rotten shifts, weekends, Christmas day etc - 12 x 12.5 hours nights this week. DH is also qualified nurse, 34 years experience and is earning less then he did 7 years ago.
We deserve our pensions and I make no excuse for saying that.
I will be ready to leave the NHS age 55. Many are leaving before because morale is at an all time low.

Thrugelmir

missmental123 wrote: »

Nurses have have only had one 1% pay rise since 2010.

The entire public sector has. Think also of those in the private sector that haven't enjoyed secure employment for 36 years. And will still be working for another 10/11 years. Fairness cuts many ways.

mark5

A lot of the private sector have seen very low cost of living rises since about 09/10 as well, don't think it's restricted to the public sector alone.

Andy_L

missmental123 wrote: »

Nurses have have only had one 1% pay rise since 2010.

Are you sure about that?

Newchapter

Hi Missmental123

I have just investigated the same question with NHS Pensions.

To draw your pension with special status rights (ie going at 55) you need to be paying into your pension for the 5 years immediately preceding retirement. So that means you need to keep paying your pension until 55. If you stop now, you would have to wait until 60 to draw down the pension

missmental123

Newchapter wrote: »

Hi Missmental123

I have just investigated the same question with NHS Pensions.

To draw your pension with special status rights (ie going at 55) you need to be paying into your pension for the 5 years immediately preceding retirement. So that means you need to keep paying your pension until 55. If you stop now, you would have to wait until 60 to draw down the pension

I met with our pensions officer yesterday. It seems as I was part-time for 15 years (1991 -2006 - 30 hours pw ), I have not got the equivalent of 40 years service, but have 38 + years. This means that my pension pot is actually still increasing which is good news.
She did say, that after 40 years service we can opt out of the scheme and later rejoin, just losing some death benefit but not all.