NHS pension and additional pension purchase

scanpro

Another NHS pension question sorry!

So I have 20yrs in NHS service pension contributions. Previously in 1995 scheme with retirement at 60, now in 2015 scheme. I also work through my own limited company, have recently set up a SIPP to take advantage of the tax benefits, that the company pays into (around £400 pcm currently but could increase).

Basically I'm at the top of my NHS pay band and frustrated with management issues. Have been offered flexible bank work in another Trust that gives access to the NHS pension scheme. I'm considering dropping current permanent role to do more work through Ltd Co (as hourly pay rate is nearly triple NHS hourly rate!) and keep NHS pension ticking over by doing some bank work. This set up would allow a much better work life balance with a young family.

The earnings from any NHS bank work would be "slush money" as I would take my main income from PAYE and dividends from the Ltd Co. I'm considering purchasing additional pension on top of any NHS pension contributions normally deducted by staying in the scheme.

I've looked at the online calculator and it seems to allow you to choose to pay into the 1995 scheme or 2015 scheme. I met my current Trust's appointed pension scheme adviser last year who told me the 1995 scheme was frozen, so not sure if I could actually purchase more with this scheme but would prefer to given the earlier retirement age. If I can only pay into the 2015 scheme (as I do currently) then what I'm trying to ask is if this seems a sensible plan with any NHS earnings? Would I get tax relief on this purchased pension? Once you have set the amount you want to purchase (its in multiples of £250 up to £6k per year currently) I'm assuming it can't be changed? Is this purchased pension also defined benefit?

I've alway been told to never leave the NHS pension, which I'm trying hard not to, but I don't think I can continue in my current work situation for another nearly 20yrs just for the sake of a pension. I'm trying to find a balance and hope some wise ones out there can offer advice please?

Brynsam

scanpro wrote: »

I've looked at the online calculator and it seems to allow you to choose to pay into the 1995 scheme or 2015 scheme. I met my current Trust's appointed pension scheme adviser last year who told me the 1995 scheme was frozen, so not sure if I could actually purchase more with this scheme but would prefer to given the earlier retirement age. If I can only pay into the 2015 scheme (as I do currently) then what I'm trying to ask is if this seems a sensible plan with any NHS earnings? Would I get tax relief on this purchased pension? Once you have set the amount you want to purchase (its in multiples of £250 up to £6k per year currently) I'm assuming it can't be changed? Is this purchased pension also defined benefit?

Have you called the NHS scheme helpline for members: 0300 3301 346. They should be best placed to answer your questions if the appointed adviser can't (but have you actually asked him/her?).

tmonaghan

I pay an additional £250 a month to receive about £3000 more a year for life. It is protected against inflation and can be passed on to your survivor that will receive 50% of your NHS pension. I don't think you get that much through the private sector. Once cash is gone there will be nothing left however NHS Pension pays until you die.