shall I go for promotion to boost final salary pension

llanrach

Hi all
I am on an NHS final salary scheme. So my understanding is best year of one of the last three years contributes to calculating my pension. I have 8 years to go before retiring at 56. I have to work another year because changes in pension scheme rules. My question is How much extra will I actually get per month/year if I go for promotion? (I am not that fussed, but will do if it makes considerable difference to my pension) If I go for promotion I will be earning 7k more a year in 8 years time.
Sorry I have no idea how to work this out. I have paid into NHS pension for 30 years however 10 years part time so assuming paid equivalent to 25 years full time.

I need to work out if the stress of promotion will be worth it. Short term pain long term gain -thank you all in advance

mollycat

llanrach wrote: »

Hi all
I am on an NHS final salary scheme. So my understanding is best year of one of the last three years contributes to calculating my pension. I have 8 years to go before retiring at 56. I have to work another year because changes in pension scheme rules. My question is How much extra will I actually get per month/year if I go for promotion? (I am not that fussed, but will do if it makes considerable difference to my pension) If I go for promotion I will be earning 7k more a year in 8 years time.
Sorry I have no idea how to work this out. I have paid into NHS pension for 30 years however 10 years part time so assuming paid equivalent to 25 years full time.

I need to work out if the stress of promotion will be worth it. Short term pain long term gain -thank you all in advance

It's easy. Try Google.

newatc

Don't know the NHS scheme but theoretically the % increase in you pay will lead to the same %increase in your pension.

GunJack

for example.... assume yrs service at leaving=33, accrual rate=1/80th, salary 50k, pension= (33/80) x 50k = £20,625 p.a. pension plus poss lump sum of 3x pension

salary £57k, pension= (33/80) x 57k = £23,512.50 p.a. pension plus poss lump sum of 3x pension.

NOTE:- this example is based on the terms of the PCSPS Classic scheme in terms of accrual rate and lump sum, which is the final salary scheme I'm familiar with. But what it does show is how the larger salary impacts the pension to give you an idea - obviously you'll need to apply the same calculations to the specifics of the NHS pension and your salary.

PeacefulWaters

I had a mate who jumped from £36,000 to £49,000 with his final promotion.

Twelve months later he retired. He'd increased his pension from £24,000 to £36,750 in a stroke.

mollycat

PeacefulWaters wrote: »

I had a mate who jumped from £36,000 to £49,000 with his final promotion.

Twelve months later he retired. He'd increased his pension from £24,000 to £36,750 in a stroke.

In the NHS?

When the most you can accrue is 45/80ths?

PeacefulWaters

mollycat wrote: »

In the NHS?

When the most you can accrue is 45/80ths?

No, not the NHS.

GunJack

That looks like a 60th scheme, up to 40/60th accrual is common n those but with no automatic lump sum, you'd have to commute some pension to get one.

llanrach

thanks roughly im making out i get extra 3k for getting extra 7k , my next step up-matron gets extra 7k a year = 3k a year on my pension therefore thats a lot to loose if i can retire at 56 could last another 30 plus years !! lot of money. I will bite the bullet and get that promotion . Thank you

kidmugsy

mollycat wrote: »

It's easy. Try Google.

Don't we say "Goolag" now?

Muscle750

Many go for promotion in the public sector just to get a better pension and in some cases its a case of its not what you know but who you know.