Taking NHS Pension early - ? Actuarial reduction calculation.

Andy_L

Korkyb said:

hyubh said:

Korkyb said:

I recently went part time so "may" have to take my pension in the next couple of years to make sure that my "best year" salary is captured (before I went part time) & is what my pension is based on.

It could be that I might actually be better off being part time as I work more unsocial hours now than I did full time (at the same grade) & I believe it is all worked out pro-rata but I wont bank on that till I see the numbers in black & white.

The final salary sections use whole-time equivalent pay (with calendar service pro-rated for any part time periods). So going part time does not, in itself, affect your final pensionable pay.

I understand that going part time does not affect the final pensionable pay (in itself) but what I'm unsure about is the effect of an increase in the proportion of unsociable hours.

So if:

Working full time my annual salary was enhanced overall by 15% giving me a pensionable pay of £40k

then working part time (50% hours) because I work a greater proportion of unsocial hours I actually earn £25k due to the increase in unsocial hours payments. 

In that scenario would my pensionable pay be pro rata'd up to £50k (i.e. does the unsocial hours element get increased pro rata as well as the basic salary?).

If not then I just have to time taking my pension to make sure my last 12 months of full time is the figure used for the calculation.

Depends on the scheme rules. It may be that the unsocial hours premium isnt pensionable 

Korkyb

Andy_L said:

Korkyb said:

hyubh said:

Korkyb said:

I recently went part time so "may" have to take my pension in the next couple of years to make sure that my "best year" salary is captured (before I went part time) & is what my pension is based on.

It could be that I might actually be better off being part time as I work more unsocial hours now than I did full time (at the same grade) & I believe it is all worked out pro-rata but I wont bank on that till I see the numbers in black & white.

The final salary sections use whole-time equivalent pay (with calendar service pro-rated for any part time periods). So going part time does not, in itself, affect your final pensionable pay.

I understand that going part time does not affect the final pensionable pay (in itself) but what I'm unsure about is the effect of an increase in the proportion of unsociable hours.

So if:

Working full time my annual salary was enhanced overall by 15% giving me a pensionable pay of £40k

then working part time (50% hours) because I work a greater proportion of unsocial hours I actually earn £25k due to the increase in unsocial hours payments. 

In that scenario would my pensionable pay be pro rata'd up to £50k (i.e. does the unsocial hours element get increased pro rata as well as the basic salary?).

If not then I just have to time taking my pension to make sure my last 12 months of full time is the figure used for the calculation.

Depends on the scheme rules. It may be that the unsocial hours premium isnt pensionable 

On the 1995 scheme (which will make up the bulk of my pension) unsocial hour payments are definitely pensionable.

What I'm not sure of is how the unsocial hour payments are counted in relation to a part time worker when the salary is pro-rata'd (is that a word...) up?