Can I Freeze NHS Pension?

PoGee

I shall be 56 soon. Most of my pot is in the 1995 scheme, rest in 2015 scheme. I'm on band 6 role.
Can I do this - after I reach 56, resign and freeze my pension, with a view to taking it at age 58 BUT take a part time role as, say an nhs healthcare assistant (lower band)? This would be about a month after I resign.
(My pension at age 60 is forecasted to be 10.3k and if I take it at age 56, 7.5k. I understand that it won't be 10.3k at age 60 as i would not be contributing in, once frozen).

Stubod

..why would you want to "leave" the nhs pension scheme.....and continue to work in the nhs....madness?

Flugelhorn

Stubod said:

..why would you want to "leave" the nhs pension scheme.....and continue to work in the nhs....madness?

@PoGee needs to get proper advice from the trust pensions team / NHSBSA

 suspect it is misunderstanding as to how the pension is calculated, it isn't the salary at the time of retiring but the best year during a number of previous years depending on the scheme - so agree better to stay - 

having said that you might think I was mad as I left the NHS scheme at 58 (lifetime allowance) , carried on working, took the pension at 60 left one of my jobs and  carried on working in another two for 18 months.

Marcon

PoGee said:

I shall be 56 soon. Most of my pot is in the 1995 scheme, rest in 2015 scheme. I'm on band 6 role.
Can I do this - after I reach 56, resign and freeze my pension, with a view to taking it at age 58 BUT take a part time role as, say an nhs healthcare assistant (lower band)? This would be about a month after I resign.
(My pension at age 60 is forecasted to be 10.3k and if I take it at age 56, 7.5k. I understand that it won't be 10.3k at age 60 as i would not be contributing in, once frozen).

Pensions don't freeze; they continue to increase between the time you stop contributing to the time you draw your pension from the scheme in question.

hyubh

Marcon said:

PoGee said:

I shall be 56 soon. Most of my pot is in the 1995 scheme, rest in 2015 scheme. I'm on band 6 role.
Can I do this - after I reach 56, resign and freeze my pension, with a view to taking it at age 58 BUT take a part time role as, say an nhs healthcare assistant (lower band)? This would be about a month after I resign.
(My pension at age 60 is forecasted to be 10.3k and if I take it at age 56, 7.5k. I understand that it won't be 10.3k at age 60 as i would not be contributing in, once frozen).

Pensions don't freeze; they continue to increase between the time you stop contributing to the time you draw your pension from the scheme in question.

The OP clearly means defer with the aim of a voluntarily reduced FTE not affecting their final salary benefits...

hyubh

PoGee said:

I shall be 56 soon. Most of my pot is in the 1995 scheme, rest in 2015 scheme. I'm on band 6 role.
Can I do this - after I reach 56, resign and freeze my pension, with a view to taking it at age 58 BUT take a part time role as, say an nhs healthcare assistant (lower band)? This would be about a month after I resign.
(My pension at age 60 is forecasted to be 10.3k and if I take it at age 56, 7.5k. I understand that it won't be 10.3k at age 60 as i would not be contributing in, once frozen).

I agree with Flugelhorn, you need to get proper clarification from the administrator. If you did resign then rejoin, then the final pay link would be automatically restored. Opting out and immediately rejoining the pension scheme instead may give a different result (it would in the LGPS). However keep in mind the 'final salary' for the 1995 scheme is the best of the last 3 years - so trying to game things may be a bit pointless, if your voluntary pay drop will be for two years only anyway.

Nebulous2

Why are you looking to take a post at a lower band? Have you considered leaving the NHS? 

I've done something a bit like that, qualified nurse, left the NHS many years ago and transferred my pension into the LGPS. I've just retired from the role that allowed me to access the LGPS and I've taken a lower paid post as a nurse in the NHS and joined the pension scheme.

You could do it in reverse, there are plenty of care jobs outside the NHS if you left and deferred your pension. 

marlot

PoGee said:

I shall be 56 soon. Most of my pot is in the 1995 scheme, rest in 2015 scheme. I'm on band 6 role.
Can I do this - after I reach 56, resign and freeze my pension, with a view to taking it at age 58 BUT take a part time role as, say an nhs healthcare assistant (lower band)? This would be about a month after I resign.
(My pension at age 60 is forecasted to be 10.3k and if I take it at age 56, 7.5k. I understand that it won't be 10.3k at age 60 as i would not be contributing in, once frozen).

I think what you're trying to do is...

• Move to a lower paid/less stressful role
• Make sure that your pension is still linked to your older (higher) salary, so that you don't lose out

is that right?

Marcon

hyubh said:

Marcon said:

PoGee said:

I shall be 56 soon. Most of my pot is in the 1995 scheme, rest in 2015 scheme. I'm on band 6 role.
Can I do this - after I reach 56, resign and freeze my pension, with a view to taking it at age 58 BUT take a part time role as, say an nhs healthcare assistant (lower band)? This would be about a month after I resign.
(My pension at age 60 is forecasted to be 10.3k and if I take it at age 56, 7.5k. I understand that it won't be 10.3k at age 60 as i would not be contributing in, once frozen).

Pensions don't freeze; they continue to increase between the time you stop contributing to the time you draw your pension from the scheme in question.

The OP clearly means defer with the aim of a voluntarily reduced FTE not affecting their final salary benefits...

You know that and I know that....but I think you need to try and keep in mind that others reading this thread (and possibly OP herself) may be misled by the term 'freeze'. Hence my gentle clarification.

Aretnap

I was somehow under the impression that the "final salary" part of the 1995 scheme now effectively means the salary you were on at the time you left the 1995 scheme and joined a new scheme.

Have I got that wrong? Is it still linked to your final salary when you leave the NHS, full stop?

(This may influence my wife's career plans for the next few years). 

Dazed_and_C0nfused

Aretnap said:

I was somehow under the impression that the "final salary" part of the 1995 scheme now effectively means the salary you were on at the time you left the 1995 scheme and joined a new scheme.

Have I got that wrong? Is it still linked to your final salary when you leave the NHS, full stop?

(This may influence my wife's career plans for the next few years). 

Not sure where you've got that idea from!

https://www.nhsbsa.nhs.uk/changes-public-service-pensions/your-nhs-pension-after-1-april-2022

Are you aware of the McLoud judgement as that may impact your wife's pension options as well?