NHS Additional Pension purchase

spaniel101

Thank you all, such knowledgeable peeps!


I hadn't thought of the NI effect with MPAVCs, i'll have a good read of the link thank you for this and advice re guaranteed payments and increases.


I just assumed this weekends TRS would show 3% 'ish' more, so im just surprised it's only 1% more than the figures on last years. Maybe ill enquire with TRS/Pensions why this is as it appears odd to me. It is the 1995 Deferred showing this, so I don't think I get the 1.5% bit as well as CPI on it, because im not an 'active contributing member' of this one anymore, just the 2015 one and additional.


I may take the 1995 at 60 as prescribed, then the 2015 at 65 (as ive bought 2 years back) or possibly beforehand, at least i'll have a few options under my belt. I like the idea of S&S ISA's but may have to wait until available lump sum at 60, purely due to the fact Universal Credit is on my horizon for the next 14 years whereby they apply a reduction with savings over £6000 through to £16000, then you loose all benefits after this max allowance (my daughter will turn 19 when I am 60 so timing is good for us). I think Pensions might be my most beneficial avenue at the moment.



...Im going for a good read, I may return with lots of questions about MPAVCs !!! Thank you all again this is so helpful.

spaniel101

Thank you louloubelle79, this is really helpful, especially the aged 55 bit !! I'll have a good read of the link.

Twoplus

I think you can only start taking the NHS Pru AVC when you start taking your NHS pension. As I understand it, if you start contributing when in the 2015 NHS scheme you will not be able to access it until you start drawing from the 2015 scheme.

Your deferred 1995 scheme will go up in line with your salary until you retire, not CPI. It is based on your best years salary out of the last 3 years of working.

louloubelle79

Hi TwoPlus I will check this although on the Pru Nhs link it says
With AVCs you have a number of options for how to access your savings, currently from age 55, on retirement, or earlier if you’re in ill health.
My paperwork says 55 but will check the details....
https://www.pru.co.uk/nhs

Twoplus

Hi loulou
Yes I think you are correct having looked at the Pru site again ( I thought I had read somewhere on the Pru site that you had to take it the same time as NHS pension but perhaps I am mistaken) and on NHS questions it does say you can take it at 55 without taking you NHS scheme.
It is all very complicated, I have been trying to get my head around it for 6 months now::eek: and still have not got there. Does not help with different rules for each scheme.
I my be wrong to about the 1995 scheme as it looks like spaniel will have had a break in service of more than 5 years so it will not be based on final salary when they retire.

stoozie1

Have you spotted that you can't contribute to your 2015 scheme once you access your 1995 scheme pension?

This fact changed our plans, so I thought I'd point it out in case you hadn't seen.

spaniel101

Apparently, purely because I had a break of more than 5 years, my 1995 scheme will be based on my salary at the time of leaving (2011). In addition, I am able to draw the 1995 scheme at aged 60, then... continue contributing to 2015 scheme, again, purely due to this break of more than 5 years, as it is then deemed 'not linked' to my 2015 scheme.


Whilst admitedly, this all fell into my lap hap-hazardly, it kind of works for me....apart from the figures, which of course happens to be my main issue now.


I automatically was offered the one-off opportunity to transfer my deferred 1995 benefits into my 2015 scheme upon re-joining. I therefore received an Estimate of Transfer of Deferred Benefits.


Thus:


My 1995 scheme upon leaving 2011 = £4286.10
As of date of quote = £4962.02 (increase of 15.78% over 7years!)

Transfer Value = £79620


Would earn in 2015 scheme = £306,985.00 Pension Earnings Credit (Pensionable Earnings 2018/2019) = 1/54th + revaluation + 1.5%



I am now considering if it would be worth transferring this into 2015 scheme as:


I have recently reduced my hours at work due to various and don't envisage increasing my hours again if I can so help it over the next 10 years. The figures admittedly shocked me as this Deferred 1995 has only increased 15.78% in 7 years, isn't this pretty poor (obviously I would rather do something about it sooner rather than later if its not even 3% increase per year!) ? Yes I could draw the 1995 one in 14 years time, but would it be more valuable transferring this into 2015 scheme ? I have bought ERBBO so could take this at 65 instead of 67, but even if I took this at 63 I suspect this transfer would be certainly more beneficial by then, enough to take the hit ?. I also have Additional (£6000) and considering MPAVC but now Im thinking would it actually have been better just to do MPAVC instead ?!.

saucer

Your 1995 pension will be deferred. The amount you are due will rise annually from the point you left by CPI to account for inflation. That increase for 7 years seems about right to me. Were you expecting it to grow like an investment?

GunJack

Increase of 15+% over 7 years is good going considering it's been low inflation for most of that time, and also remember it's £4.9k P.A. not a "pot" of money. My deferred Civil Service pension has increased in a similar % over that time.

Twoplus

The general opinion when the 2015 scheme came out was if you wanted to retire before 65 and had a 1995 scheme you where better keeping it.
If you want to go at 63 your 2015 scheme will still be reduced.