NHS 1995 scheme dilemma

notbrokeyet

Hi, be patient, I’m new!
In short, I am 58 and a half. I left my Band 7 job in London last April to move to the south coast, I found a short term contract initially which wasn’t as secure as I was lead to believe. Band 7 jobs are like gold dust down here so I took a band 6 job thinking I would retire this summer and my pension would be based on the best of the last three years I.e. my London job. I would then find part time work to tide me over until my state pension kicks in. The most recent guide doesn’t make it very clear and I’m now panicking that I’ve screwed up my pension.
Added to the mix is that we are struggling to sell our Home Counties house and have still got a mortgage to pay.
Should I retire to get my pension based on my previous salary, or bite the bullet and go back to London. The pension adviser at my trust is as much use as a chocolate teapot.
Any advice is welcome

tacpot12

Your 1995 Section pension is based on the best year in the last three you work. I can't remember exactly how the start and end of this 'year' is calculated, I'll check and add another reply.

tacpot12

Ok, the years are based on your last working day. So from your last day back 365 years is the first year, back another 365 days is the next year, and back another 365 days is the final year.

To maximise your pension, you shouldn't remain in a lower paying job for more than two years.

Another possibility to maximise your pension is to leave your job (so you become a deferred member) and defer drawing your pension as long as possible. Every month that you can defer your pension will increase your pension slightly. My partner left her NHS job and is doing this. She has a small pension from her first employer, and is taking this a lump sum at 55, to defer taking her NHS pension until she is 57. This might be difficult with the mortgage, but have a think about whether this might work for you.

Flugelhorn

tacpot is right about how the "best of last 3 years" is calculated.

I left the NHS scheme at 58, kept it as deferred and carried on working , pension is based on the mid year of my last three years, so when I was about 57. So your plan should be OK.

Dox

Pretty clearly explained here if you need further reassurance: https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/How%20to%20calculate%20Total%20Pensionable%20Pay%20V4%2006.13.pdf

notbrokeyet

Thanks, I was wondering whether this could be possible as I could stop my pension and then do locums until we sell our house and pay off the mortgage. The uplift in pay from doing locums would service the mortgage and allow me to carry on saving into and ISA. I will definitely look into this.

crv1963

I left my 8a post, did 30 months agency/ private sector posts then re-joined the NHS 1995 scheme as a Band 6. My pension now consists of two parts which are to be taken together when I do retire as follows:-

Part 1 Deferred pot calculated on Band 8a contributions plus
Part 2 Current pot calculated on Band 6 contributions which I am in the process of increasing by changing from M-F, 9-5 to weekend and shift work, whilst also getting the uplift from 40/80ths to 45/80ths by working from 55 to 58- was 55 last year. I have MHOstatus.

As I understand it to defer the Band 7 pension you have to have a break completely in NHS service. If you remain a deferred member then the 1995 scheme pays out when you reach 60, but as long as you re-join the scheme with less than 5 years break you can re-join the 1995 section.

Penny07

I think it works like this - Your reckonable pay is the average of the best three consecutive years pensionable pay in the last ten.
Same as in the teachers scheme
Hope this helps! ]

notbrokeyet

With less than two years to go, and the fact that the area I’ve moved to downbanded many posts ( they didn’t do very well out of AFC) I don’t think rejoining is an option for me. My band 7 with London weighting was better than an out of London 8a so it’s worth doing what I can to preserve it. I’m a bit battle scarred after 35 years in the NHS and I think I’ve had enough anyway. But doing locums and deferring my pension seems the way to go

notbrokeyet

I’m not sure it is the same, but my last post before moving was the best paid anyway

Thrugelmir

Why not stay in the Band 6 role until you resolve the issue of selling your old home. Doesn't seem to be any rush at the current time. In 18 months or so you can take your full NHS pension without reduction. With a lot happening concurrently. Easy to make hasty decisions.