NHS Redundancy over 55.

Moonwolf

According to the NHSBA the options on being made redundant are, defer pension, or retire immediately and use some or all of your redundancy pay to offset the capitalisation cost of taking the pension early at an unreduced rate.

I can’t find anything on blended scenarios, such as taking the pension a few years earlier but not immediately, or taking the pension immediately but with only some of the capitalisation cost met, a partial actuarial reduction.

1. Does anyone know if a mixed scenario is possible?

2. As this is a DB scheme and the value of the pension is not changed just when it is paid, is the annual allowance a consideration? (ie if the capitalisation cost was £40K of redundancy payment but the individual only had £10K left (£30K with carry forward) is this s problem?

3. I assume, say 5 years early would be a little over 5 years of pension value, does anyone have any idea what the capitalisation calculation would be?

My ideal situation being made redundant now at 56 would be to get full DB pensions from 60 (I have two deferred that pay at 60 already and a 2015 NHS pension), I already qualify for full state pension and I have a DC scheme that will bridge to 60 and cover the state element to 67 and should leave a bit over for luxuries even at current performance.

Obviously paying 20% on pension income is better than paying a marginal rate of 40% on a chunk of the redundancy payment. (This is still theoretical at the moment but is a real possibility)

saucer

I don’t know which part of the NHS you work in but where I am we are really struggling to recruit, not lose people.

xylophone

I already qualify for full state pension 

Your state pension forecast shows this?

Moonwolf

xylophone said:

I already qualify for full state pension 

Your state pension forecast shows this?

Yes it does.

Dazed_and_C0nfused

Moonwolf said:

xylophone said:

I already qualify for full state pension 

Your state pension forecast shows this?

Yes it does.

Are you 100% certain of that?

Have you read it in full and not just the headline figure, which makes assumptions about your future work pattern.

Moonwolf

Dazed_and_C0nfused said:

Moonwolf said:

xylophone said:

I already qualify for full state pension 

Your state pension forecast shows this?

Yes it does.

Are you 100% certain of that?

Have you read it in full and not just the headline figure, which makes assumptions about your future work

What am I missing on this, on the breakdown it says I have 39 full years and two where I didn’t pay enough.

Notepad_Phil

Moonwolf said:

Dazed_and_C0nfused said:

Moonwolf said:

xylophone said:

I already qualify for full state pension 

Your state pension forecast shows this?

Yes it does.

Are you 100% certain of that?

Have you read it in full and not just the headline figure, which makes assumptions about your future work pattern.

What am I missing on this, on the breakdown it says I have 39 full years and two where I didn’t pay enough.

Many people just get to the 'your forecast is' at the top and never read any further where it might say that this is only if you continue contributing for so many years. Your's however says '£185.15 is the most you can get' and 'You cannot improve your forecast any more' so you really are at the full pension figure.

The mistaken belief of many that you only need 35 NI years to get to the full new state pension adds to this problem of people mistakenly thinking that they are at the full state pension level and don't need to contribute further years to actually get to the full figure. Hence why D_and_C was checking that you had read the entire forecast.

Dazed_and_C0nfused

This ^^^

So many misconceptions about entitlement to the standard new State Pension.

But you are fine.