Understanding my annual benefit statement

xylophone

I couldn’t get those links to open but I’ll try again when I can use my daughters computer

There is a problem with opening the links.

Type in NHS Deferred Pension into Google and pick up the link.

Type NHS Members Guide 1995 2015 into Google and pick up the PDF.

The link to state pension forecast works fine.

Do you have a statement of deferred benefits from when you left the scheme?

Almost-free

I don’t have a statement - when I left I didn’t know it was permanent as I left due to a cancer diagnosis . The next two yrs are a blur really . Just as I was intending going back I was diagnosed with a second cancer ��

I wasn’t on £30,000 when I left - that was probably the highest I earned when I was f/t but was p/t when I left .

xylophone

I don’t have a statement - when I left I didn’t know it was permanent as I left due to a cancer diagnosis . The next two yrs are a blur really . Just as I was intending going back I was diagnosed with a second cancer

It was not suggested at the time that you might be considered for an immediate pension on grounds of ill health?

At all events, when you left was there no communication at all from NHS pension service?

Download the PDFs as above and also check your state pension forecast.

And see https://www.nhsbsa.nhs.uk/employee-section

Dazed_and_confused

I wasn’t on £30,000 when I left - that was probably the highest I earned when I was f/t but was p/t when I left

What you were actually earning doesn't matter, it's what the full time equivalent rate was.

So say you were working 3 days instead of 5 and getting paid £18k instead of £30k your pension will be based on the £30k.

But each year you were working 3 days instead of 5 will mean you only get 3/5ths of a year built up. So say it was a 60ths scheme you would have accrued 0.6/60th, not 1/60th for that year.

Almost-free

Dazed_and_confused wrote: »

What you were actually earning doesn't matter, it's what the full time equivalent rate was.

So say you were working 3 days instead of 5 and getting paid £18k instead of £30k your pension will be based on the £30k.

But each year you were working 3 days instead of 5 will mean you only get 3/5ths of a year built up. So say it was a 60ths scheme you would have accrued 0.6/60th, not 1/60th for that year.

I see - maybe that’s why it says 26 years 328 days ‘calendar length membership’
And 21 yrs 236 days ‘reckonable’ membership . The amount still doesn’t come close to over £16,000 a year pension though .

The lump sum- will my pension be reduced if I take the lump sum ( which is just over £50,000?)

I have never felt so confused.

xylophone

The lump sum- will my pension be reduced if I take the lump sum ( which is just over £50,000?)

See Guide as above.Page 20

In both sections of this Scheme you will receive an annual pension.In the 1995 Section you will automatically receive a retirement lump sum which will normally be three times your annual pension. Members of both sections are able to give up some of their annual pension, up to a maximum amount, in exchange for a larger lump sum.

Dazed_and_confused

The lump sum- will my pension be reduced if I take the lump sum ( which is just over £50,000?)

The amount still doesn’t come close to over £16,000 a year pension though

If the lump sum is just over £50k then what is the pension?

Why do you think the pension might be less if you good the standard lump sum?

bluenose1

I am a deferred member of the 1995 scheme. Just looked at my latest statement and agree the wording is confusing.
In the "current value of benefits" table that is your annual pension and lump sum entitlement. The lump sum is tax free and three times the annual pension. So you have interpreted it correctly.
A very nice surprise if you are not expecting it.
I don't suppose you know that you could have took it from age 50 (I think it is) though with actuary reduction of approx 4% per year. So if you needed the money you could take your pension now rather than wait until June.
Though that obviously depends on your current financial situation as to whether you would want to consider this.

In the next table on your statement it shows you the increased lump sum you could get if you chose to have more lump sum than annual pension.
For every £1 you give up you get £12 additional tax free lump sum. The experts on here would say only take additional if you have reduced life expectancy or have real financial need now.

All very confusing I know, but it sounds very good news for you. Just be careful of tax implications as your annual pension is taxable.

xylophone

Why do you think the pension might be less if you good the standard lump sum?

Get..:)

The OP has not understood that in the 1995 section the Lump Sum is automatic.

The Lump Sum can be increased by commuting some of the pension.

There are other Pension Schemes where there is no automatic lump sum but the pensioner can choose to take one by commuting some of the annual pension.

bluenose1

xylophone wrote: »

Get..:)

The OP has not understood that in the 1995 section the Lump Sum is automatic.

The Lump Sum can be increased by commuting some of the pension.

There are other Pension Schemes where there is no automatic lump sum but the pensioner can choose to take one by commuting some of the annual pension.

I wouldn't mind a surprise like that. Normally I would say fortunately but in this case unfortunately I know all my pensions down to the last penny:o