NHS retire and return

LightVesselAutomatic

I have just joined after searching for advice and coming across this fantastically helpful forum.
I turned 60 this year and am an NHS employee with around 12K per year pension in the 1995 Section. I was on the 'taper' and so last year when the 1995 scheme finally closed I started making contributions to the 2015 scheme.
Having avoided thinking about retirement but events this month have made me think about the best thing to do in the next few years.
I understand that I can 'retire and return' and claim my 1995 pension but I can't find an answer to the question of 'abatement'. The NHS pensions website says my pension may be reduced dependent on the amount I earn on 'returning'.
Can anyone shed any light or figures that will help my calculations? Would it be worth taking the pension (since I can't increase it anyway) then ploughing money from earned income into a related AVC to boost it a bit? (I have one on the go currently that is scheduled to pay out about £3k pa) Or any idea how I can get actual figures to work out if it is worth it or if I should just continue as I am. I can't claim anything from the 2015 section until my state retirement age (67)
Thanks in advance

GrubbyGirl_2

Why do you think you can't improve your pension by not taking it?  The 1995 section is final salary and you might be getting a decent pay rise which knowing the Government will be paid over a few years.  You might get a promotion in the next 6-7 years, indeed you could do what I did and actively look for a promotion which added 25% to my pension.

You probably need to call NHSBSA and ask them directly what your numbers will be if you retire and return

Stubod

I think you need to talk to NHS pensions, they are quite helpful. Also note that only yesterday I received a 4 page letter from NHS pensions advising a load of changes that are taking place this year regarding more options if you "retire and return"?

When I enquired I was advised that if you are in the 1995 scheme and "retire and return" you can no longer contribute to the NHS pension scheme, (where as you can if you are in the 2008.2015 schemes).

kaMelo

Abatement has been suspended until April 2025, with the staffing shortage I can't see it ever being reimplemented.
More importantly, once you reach NRA for the 95 scheme, 60, abatement doesn't apply anyway.


Edited to add;
Government Response to consultation on continuing abatement suspension, extending it until at least 31st March 2025.
https://www.gov.uk/government/consultations/nhs-pension-scheme-proposed-amendments-to-continue-the-suspension-of-restrictions-on-return-to-work/outcome/nhs-pension-scheme-proposed-amendments-to-continue-the-suspension-of-restrictions-on-return-to-work-response-to-consultation

LightVesselAutomatic

GrubbyGirl_2 said:

Why do you think you can't improve your pension by not taking it?  The 1995 section is final salary and you might be getting a decent pay rise which knowing the Government will be paid over a few years.  You might get a promotion in the next 6-7 years, indeed you could do what I did and actively look for a promotion which added 25% to my pension.

You probably need to call NHSBSA and ask them directly what your numbers will be if you retire and return

Thanks. I had assumed I cannot improve on the 1995 section as it is now closed and I am enrolled in the 2015 scheme. I am unlikely to want any further promotion but if I did the pension contributions would be in this scheme. If I took pension I could pay more income into my AVC

I will ring (had a few email exchanges) but thanks for the abatement information. This might well make it worth my while taking the 1995.

Thanks to all, is it obvious I have been avoiding thinking about this!

infj

There is a rumour in the current government consultation on NHS Pensions that those who have 1995 membership may get the same flexibilities as those in 2008 and 2015 i.e to be allowed to do drawdown or take the 1995 pension if they have reached the pension age for the scheme while continuing to work and stay in the 2015 scheme.
Though if the experience of a fellow staff member is anything to go by on trying to do this in the 2008 scheme, good luck with finding anyone in Pensions who knows how to implement this. No wonder people give up and just retire.
Plus it's this useless Government lot's consultation, so they're bound to c**k it up............

coyrls

infj said:

There is a rumour in the current government consultation on NHS Pensions that those who have 1995 membership may get the same flexibilities as those in 2008 and 2015 i.e to be allowed to do drawdown or take the 1995 pension if they have reached the pension age for the scheme while continuing to work and stay in the 2015 scheme.
Though if the experience of a fellow staff member is anything to go by on trying to do this in the 2008 scheme, good luck with finding anyone in Pensions who knows how to implement this. No wonder people give up and just retire.
Plus it's this useless Government lot's consultation, so they're bound to c**k it up............

It's not a rumour, my wife has just got a letter explaining those flexibilities and that they will be available from April 2023.

kaMelo

infj said:

There is a rumour in the current government consultation on NHS Pensions that those who have 1995 membership may get the same flexibilities as those in 2008 and 2015 i.e to be allowed to do drawdown or take the 1995 pension if they have reached the pension age for the scheme while continuing to work and stay in the 2015 scheme.
Though if the experience of a fellow staff member is anything to go by on trying to do this in the 2008 scheme, good luck with finding anyone in Pensions who knows how to implement this. No wonder people give up and just retire.
Plus it's this useless Government lot's consultation, so they're bound to c**k it up............

Whilst there is a possibility for "drawdown" on the 2008/2015 scheme it is not like a private pension drawdown there are qualifications and limitations. Your pensionable pay must have had at least a 10% (I think) reduction over the previous twelve months, any drawdown is subject to actuarial reduction and you can only do it twice.  It's  complicated and, in my opinion, not really much benefit in the long term.

The rumour about a consultation on being able to contribute to the 2015 scheme after drawing a 1995 pension is neither a rumour or consultation. Like @coyrls stated, from my understanding it is starting in April 2023.