NHS Band 8B then redundancy then back on a lower paid role

lscolman

Hi,
I was made redundant from the NHS in March 2019 on a Band 8B and am now looking to return to the NHS but in a lower paid role.
I am not looking to pay into the NHS pension in the lower paid role.
My primary concern is to retain my final salary of a Band 8B and to ensure that any role I take in the future, be it Band 5, 6 etc. does not affect this.
I've been advised to fill out a SD502 by the NHS Business Services Agency, which opts me out of the NHS pension, but I am not entirely convinced this will have the desired effect of not affecting my final salary figure.
I have 25 years in the 1995 scheme and 4 years in the 2015 scheme.
Anyone else been through this scenario, who can advise please?
Thanks in advance
Lee

Comms69

I think once you switch to the new system, you lose the final salary pension. But i'm not 100% on that, best of asking NHS SBS.

sharpe106

Probably best paying for advice for something like that. As if you get it wrong could be quite costly. 

gwynlas

I retired through redundancy at 52 on 8b and mediateed part of my lump sum to take pension, special officer status.
Contact your union for advice or talk to the Trusts pension adviser. 
Have you decised when you will access pension?
Don't forget pension is taxable so you might find yourself paying higher rate nless you do reduced hours on lower band,
It used to be that you were not allowed to earn greater amount than your previous gross salary if you went back but I am not aware of current conditions.

Manxman_in_exile

SD502 is (or used to be) the form you completed to opt out of the NHS scheme.  If you do an SD502 to take you out of the NHS scheme in your new, post-redundancy NHS post, I assume (but do not know) that will have the desired effect of ensuring your new employment at a lower band does not adversely affect the pension you have already accrued when you reach retirement.

However, if you do a SD502 for your new job, that means you won't be accruing any further NHS pension benefits, albeit at a lower band, in that new job.

I don't know what question you asked the NHS Benefits Agency (or what ever they're now called), but if I were you I'd be wanting to ask something like:  "I've just been made redundant*** from a Band 8b post with 25 years service in the 1995 Scheme and four years service in the 2015 Scheme.  I plan to retire in XXXXXXX.  If I return to NHS employment before then at a Band lower than 8b, what are my options if I do not want to adversely affect the final pension I have already accrued?  Can I rejoin the NHS scheme in my new employment at a lower band without prejudicing the pension benefits I have already accrued, or must I opt out of the NHS scheme in my new employment by submitting a SD502?"  The point being, if I were you, I would want to rejoin the scheme if I could, but only if it didn't affect my final pension.  Does that all make sense?

*** I'm assuming the redundancy package you received doesn't prevent you from rejoining the NHS scheme if you wanted to?

It's vital you get an answer you can rely on.  The NHS Benefits Agency (or whatever they are currently called) is the obvious place to ask the question.  Ask and get the answer in writing.  Difficulty is, I'm not sure what you do if they give you wrong advice as I'm pretty sure they aren't regulated to give advice.  Although I suspect it would be reasonable to rely on any advice they give regarding the NHS Scheme as they administer it.  I'm not sure if anybody else (eg a regulated pensions adviser) would know enough about the scheme to advise, but if you can find one who's willing to advise on this precise question, I'd certainly ask them.

(What I'm trying to say between the lines is:  I have some experience - many years ago - of "administering" the NHS schemes from a trust point of view.  The scheme rules are inflexible and inviolable.  If you inadvertantly break any rules it can be very difficult if not impossible to put things right - even if you do what you think you were advised to do.  You ought to be able to rely on advice from the NHS Benefits Agency - but make absolutely sure you are asking them the right question, and that they understand your question.  See also if you can get reliable advice from a regulated pensions advisor too, but it may be difficult to find one with expertise and knowledge of the NHS scheme.  I would advocate a belt and braces approach.  ie ask as many people as possible.

lscolman

I've now spoken to two different advisors at the NHS Business Services Authority (who administer NHS Pensions) and they both confirmed that if I submit the SD502 in the first month of employment with my new employer, that it will have the desired effect in that it will not effect my previously accrued pension. I would effectively remain as a deferred member. I have asked the question via e-mail too, to ensure I get it in writing.  Thanks all. 

Andy_L

Is "protection of pay" an option? It would allows you to use the best of, in your case, salary when you were made redundant as an 8b or salary when you reach retirement age while being a member of the 2015 pension scheme

https://contactcentreservices.nhsbsa.nhs.uk/selfnhsukokb/AskUs_Pensions/en-gb/5085/protection-of-pay/16618/what-is-protection-of-pay

lscolman

Hi,
I would need to have taken up further employment in the NHS within 3 months of being made redundant, so that's not an option. The advisors at NHSBSA did mention this, but the timing doesn't work for me.
Cheers, Lee