NHS Pension

missile

Hi,
I am struggling to understand the SPPA Pension Forecast.
date of joining 25/03/2008
CARE Earnings £463.72
CARE Accrual Rate 1/54
Care Pension to date £8.59
Does this mean my annual pension from NHS would be a measly £463.72 per year?

Dazed_and_C0nfused

No, £8.59/year.

But you have got confused somewhere as I don't think CARE schemes existed in the NHS in 2008.

The NHS pension scheme is hard to beat.

I am struggling to understand the SPPA Pension Forecast.
date of joining 25/03/2008
CARE Earnings £463.72
CARE Accrual Rate 1/54
Care Pension to date £8.59
Does this mean my annual pension from NHS would be a measly £463.72 per year?

missile

I certainly am confused. 
"The NHS pension scheme is hard to beat." 
After 13 years service the pension forecast is £8.59 / year 

ewaste

Indeed the CARE 1/54ths is the 2015 Scheme, @missile what are your actual dates of employment e.g. did you actually enter NHS Scotland service in 2008 and have been continually employed full time until present?

Dazed_and_C0nfused

You should have two pensions, a final salary one from 2008 to 2015 and then the Care one from 2015 to now.

Roughly how much did you earn in the 2019:20 tax year?  Just the amount that would be classed as pensionable such as your basic salary.

hyubh

missile said:

I certainly am confused. 
"The NHS pension scheme is hard to beat." 
After 13 years service the pension forecast is £8.59 / year 

It isn't, unless (a) you didn't actually work for the first part of those 13 years (b) the entirety of your earnings in the NHS since has been £463.72 (c) you have now left the pension scheme.

You will have joined under the 1995 section (final salary) and possibly had the option of switching to the 2008 section (also final salary, higher accrual rate but no standard lump sum and potentially a higher normal pension age). From the little information you have quoted, it appears you have only very recently been moved into the 2015 CARE section. This has a higher accrual rate again, but pension accrued in previous years increases in value while you are an active member by CPI+1.5% rather than your whole-time equivalent salary, and also carries a slightly higher normal pension age again. Your CARE pension does not replace your final salary pension, it supplements it. In addition, on leaving, you will have the option of having final salary benefits on service until 2022 anyway due to the 'McCloud' judgement.

missile

Hi,
Thanks for your comments.
I have written to the scheme administer and hopefully they will clarify.

saucer

missile said:

Hi,
Thanks for your comments.        
I have written to the scheme administer and hopefully they will clarify.

Have you looked at your Total Reward Statement? There should be two separate pension forecasts, one for the 2015 pension, and one for the 1995 or 2008 pension. As others have said, the NHS pension is unbeatable so, unless you had opted out at some stage, you will find you have a great pension 

missile

I hope you are right.
I asked for a pension forecast. I did not know there was "Total Reward Statement". 

Nurse2047

Hi, can I ask if this is still true in regards to NHS pensions 

In HMRC's eyes, the value of the NHS “pension pot” is equal to 20 times the annual defined benefit of your pension. So for example, if you are due to receive £40,000 per year in pension as your defined benefit, HMRC sees this as a ‘pot’ of £800k. ? 

Thanks 

Nurse2047

missile said:

I hope you are right.
I asked for a pension forecast. I did not know there was "Total Reward Statement". 

Did you receive your statement?