NHS pension -opt out?

BoxerfanUK

missmental123,

Your scheme seems similar to mine.... PCSPS 'Classic'.

I had 'Reserved rights' which sounds a bit like your 'special status rights' and, like you, meant doubling of years over 20 years’ service and retirement age of 55. I took my by then (41/80) pension and TFLS @55. Had I left earlier my pension would have been frozen until age 60. Like you, I was not getting pay rises so at least my pension has increased by CPI since 2014 and I do not pay NI on my pension income.

I took 'Formal Retirement' which meant I took my pension and TFLS accrued to that date (2014) and was immediately re-employed full time the next day with the same employer in a much lower (and less stressful) grade. By 2016 I had earned (with doubling) another 4/80 which gave me 45/80 by 2016 which is the max pension in my scheme.

Since 2016, although then on max pension I qualify for an 'additional service payment' of 3/80 for each additional year’s service. Due to my Reserved rights' the additional 4/80 pension and the additional service payments when I draw them will be based on the much higher salary I was on BEFORE I took formal retirement, and not my current much lower salary.

The only caveat is that pension and re-employed salary cannot exceed pre-retirement salary. If it does, then the amount that you are over that limit is abated from your pension until you finally retire, in my case I was only over the limit by £150 per annum so of no real consequence.

In my scheme Reserved rights and doubling were abolished to new entrants after 1987 so the benefits are not so advantageous now.

As our schemes seem similar, maybe this might be an option worth exploring, either by taking your pension @ 55 and doing a less stressful job full time on a lower salary, or, staying in your current job and salary and working only part time. Obviously if you go the part time route you will only get 1 for 1 and not 1 for 2 as you would only be part time.

Nual

Thrugelmir wrote: »

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.

I worked with a lot of people with MHO status. They did the same policy job as me but had come via the nursing rather than social work route. So no not abnormally challenging

BobQ

Thrugelmir wrote: »

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.

I think you are correct about job security for most of those 36 years but is the public sector that secure these days?

bigadaj

BobQ wrote: »

I think you are correct about job security for most of those 36 years but is the public sector that secure these days?

The public sector is less secure than it was, but then again so is much of the private sector.

mollycat

1995 Section with MHO status with full 40/80ths already accrued some time ago and still one year to go till retirement.

Post #20 is correct; you cant simply opt out once you have reached full entitlement, you must continue to contribute till you are 55. At this point you can work on and accrue a maximum of a further x5 80ths.

To the poster getting in a froth, it's 50% of final pay not 66%, and 30 years minimum service to attain this.

100K salary?!....Try 50% of £30K as a more typical pension for most.

Hardly any 1995 Section members left now, so another reason just to calm down.

NHS pension is still one of the best, so if you fancy 30 years of doing what I've been doing for most of my adult life come and give it a go!

BobQ

mollycat wrote: »

1995 Section with MHO status with full 40/80ths already accrued some time ago and still one year to go till retirement.
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To the poster getting in a froth, it's 50% of final pay not 66%, and 30 years minimum service to attain this.

Its 50% of FS plus a lumpsum of 3 times that which is typically worth about 2/3rds ?