NHS pension for 2001-2007

Exotoxin1

aroominyork said:

Coming back to this (which we had to put on ice for a few months to get paperwork from Australia), can I please confirm that for OH who was born in December 1957 and worked for the NHS for six years from 2001 to 2007, finishing on a salary of c.£50k, she is now entitled to claim:
1. A tax free lump sum of 3(50,000/80*6)=£11,250
2. Pension backdated to age 60 (say 4.5 years ago) of 4.5(50,000/80*6)=£16,875 taxed at the her marginal rate for the current tax year

3. Ongoing pension of 50,000/80*6=£3750 taxed at her marginal rate.

Also, is index linking applied to each of these to account for inflation?

I have never come across a 1995 NHS scheme pension being backdated to age 60 when taken 'late'. Unless you've got that in writing I suspect your wife has misunderstood what she was told. I most strongly advise you to phone them again.

Dazed_and_C0nfused

Exotoxin1 said:

aroominyork said:

Coming back to this (which we had to put on ice for a few months to get paperwork from Australia), can I please confirm that for OH who was born in December 1957 and worked for the NHS for six years from 2001 to 2007, finishing on a salary of c.£50k, she is now entitled to claim:
1. A tax free lump sum of 3(50,000/80*6)=£11,250
2. Pension backdated to age 60 (say 4.5 years ago) of 4.5(50,000/80*6)=£16,875 taxed at the her marginal rate for the current tax year

3. Ongoing pension of 50,000/80*6=£3750 taxed at her marginal rate.

Also, is index linking applied to each of these to account for inflation?

I have never come across a 1995 NHS scheme pension being backdated to age 60 when taken 'late'. Unless you've got that in writing I suspect your wife has misunderstood what she was told. I most strongly advise you to phone them again.

This seems to suggest otherwise

https://faq.nhsbsa.nhs.uk/knowledgebase/article/KA-04594/en-us

Exotoxin1

Dazed_and_C0nfused said:

This seems to suggest otherwise

https://faq.nhsbsa.nhs.uk/knowledgebase/article/KA-04594/en-us

Indeed it does for this unusual circumstance - apologies! 

Flugelhorn

Exotoxin1 said:

Dazed_and_C0nfused said:

This seems to suggest otherwise

https://faq.nhsbsa.nhs.uk/knowledgebase/article/KA-04594/en-us

Indeed it does for this unusual circumstance - apologies! 

suppose reasonably allows for the "forgotten small NHS pension" - if you defer and leave the NHS there is no communication from the NHSBSA, up to you to remember to apply 

aroominyork

Flugelhorn said:

Exotoxin1 said:

Dazed_and_C0nfused said:

This seems to suggest otherwise

https://faq.nhsbsa.nhs.uk/knowledgebase/article/KA-04594/en-us

Indeed it does for this unusual circumstance - apologies! 

suppose reasonably allows for the "forgotten small NHS pension" - if you defer and leave the NHS there is no communication from the NHSBSA, up to you to remember to apply 

Yes, I hope that's the situation for OH. We never thought to tell NHSBSA of change of address, or considered NHS pension might be payable earlier than state pension age 

Flugelhorn

once you are "deferred" you don't hear anything more from them until you decide to take the pension - hope you get sorted with this soon

aroominyork

We've now got our marriage certificate from Oz (long story...) and are ready to apply. OH was born in late December 1957 so should have drawn her pension over four years ago. This morning she obtained her NHS pension scheme membership number from the helpline (to go on the AW8P form which is now ready to mail), then logged into the website which showed lots of nice numbers, though we cannot quite work them out:

Pay (presumably inflation adjusted): £60,369.17

Reckonable membership: 6 years, 43 days

Pension: £5750.42

Lump sum: £17,251.26.

I calculate her annual pension as 60369.17 / 80 * (6 + 43/365) = 4616.58. So why is it higher? Are they increasing the annual payment for the 4+ years she has missed, rather than making a backdated payment for those 4+ years, and increasing the 3x lump sum as well?

Flugelhorn

you have the right sum there - they list it as  : 

days in service * pay / 29200 

which equals 4616.58 as you have 

When they did DHs pension (left 2005, took pension 2017) - I am not sure when calculating whether  they upgraded the pay by the CPI or whether they upgraded the pension but there was definitely something done - I got the feeling that the amount of pension was calculated in 2005 and then CPI added but they didn't say and the sum was more than we were expecting 

I don't think they would enhance the pension to make up for the 4 years without explaining that - think they are more likely to give a lump sum

spaniel101

I have deferred 1995 which indeed increases by CPI each April, its based on static 'salary at date of deferrment' .   I can follow the math on TRS each August refresh.   


Although I think maybe 2007 - 2011 ('ish') it uprated by RPI, 2011 onwards - CPI, someone will correct me if im wrong. 

Flugelhorn

@spaniel101 I think that it right, it changed from RPI to CPI in about  ~ 2011