Should I claim my NHS pension

CKhalvashi

Stubod said:

I don't think there is much of a financial "gain" by not taking your 1995 pension at 60. Under current rules if you are in the 1995 scheme you can't continue to pay into the NHS scheme when you return to work, BUT the rules are a changing as from April this year so it is worth checking the new rules.

NB If you "retire and return" you will be on a new contract as they (nhs) actually "re-employ you", but this should not be a problem as they are trying to encourage people to stay. At 60 you will get a tax free lump sum of 3* your annual pension.

Whatever you do do not take any "extra" lump sum as this is not really cost effective. for the later schemes there is no "compulsary" lump sum.

Obviously you will be taxed on your total income which will include your NHS pension.

Just as an asside, I recently went through the "Retire and Return" so I could claim my earlier peniosn and it has been a complete nightmare. Despite filling in the relevant AW8 forms and R&R request forms with 3 months notice, everything that could could go wrong did. In fact nothing went right, from delays in payments, removed from all their systems, unable to get paid for work already completed etc. etc. To date 200+ emails and many hours on the telephone and sending 4 official complaints to various departments trying to sort things out! (It took one GP I know 8 months before they actually got their first pension payment!).

...but you may be lucky..?

It's about 7% to wait an extra few years so not huge. Mom has been told she can't pay into the pension scheme (but doesn't really want/need to on retirement).

The lump sum is the reason she is going. At the moment she has most of it to pay off on a mortgage, but as an example, to retire from an 8a position at 62 with 31 years to go into a band 7 job on a 60% contract, she's about £200 down monthly in cash terms but without a £1000-ish mortgage, so £800 up (plus without the stress of significant additional responsibilities). She dropped a day (to 80%) for a few years when Agenda for Change came in but I'm not sure if this will be relevant to you. This will be very person specific so I can only provide her experience with this.

This has been specifically been planned in this case with around 5 months notice, and I can't really update you for a few months on this case. It may be prudent to have a few months expenses to one side just in case. The pension people do seem quite proactive (I'm far better with numbers than she is therefore have been called on for advice) but I can't confirm this will translate to reality.

kaMelo

Onebrokelady said:

Stubod said:

I don't think there is much of a financial "gain" by not taking your 1995 pension at 60. Under current rules if you are in the 1995 scheme you can't continue to pay into the NHS scheme when you return to work, BUT the rules are a changing as from April this year so it is worth checking the new rules.

NB If you "retire and return" you will be on a new contract as they (nhs) actually "re-employ you", but this should not be a problem as they are trying to encourage people to stay. At 60 you will get a tax free lump sum of 3* your annual pension.

Whatever you do do not take any "extra" lump sum as this is not really cost effective. for the later schemes there is no "compulsary" lump sum.

Obviously you will be taxed on your total income which will include your NHS pension.

Just as an asside, I recently went through the "Retire and Return" so I could claim my earlier peniosn and it has been a complete nightmare. Despite filling in the relevant AW8 forms and R&R request forms with 3 months notice, everything that could could go wrong did. In fact nothing went right, from delays in payments, removed from all their systems, unable to get paid for work already completed etc. etc. To date 200+ emails and many hours on the telephone and sending 4 official complaints to various departments trying to sort things out! (It took one GP I know 8 months before they actually got their first pension payment!).

...but you may be lucky..?

Thanks this is what I wanted to know 😊 according to the info I've got if I retire and return onto a new contract I will be enrolled on the 2015 scheme because I'm a transition member who is on both at the moment 

I have heard so many nightmare stories of people trying to claim their pension and not getting paid 😳 this is what happens when you outsource it to a company and don't keep it in-house. I suppose I would have my wages to live on while I waited though 🤷‍♀️

Edited to add I was going to take the smaller lump sum and pay off the last bit of my mortgage 

Since the 95 scheme closed in April 2022 there is simply no benefit in not taking your 95 pension once you've reached the NRA of 60. You cannot accrue any more years in it and you don't receive any uplift in pension for deferring. Whilst it is true there is likely to be a significant pay rise in April 23, so increasing the salary used to calculate your pension, to take any benefit from this you would need to work at least another year.  Being in receipt of the pension income for twelve months will by far outweigh any benefit from waiting and having a slightly larger starting pension. The only caveat would be if you knew you were in line for a significant promotion in the not too distant future and you didn't mind working a little longer.

Since April 2022 your pension contributions have been towards the 2015 scheme, you don't have to take this pension at the same time as the 95 pension. Under current rules with retire and return you would not be allowed to contribute to the 2015 scheme however new rules from April 2023 mean that if you retire and return you can now pay into the 2015 pension scheme. Also, although this wouldn't apply to you as you're over the NRA for the 95 scheme, abatement has also been suspended until April 2025. 

Onebrokelady

kaMelo said:

Onebrokelady said:

Stubod said:

I don't think there is much of a financial "gain" by not taking your 1995 pension at 60. Under current rules if you are in the 1995 scheme you can't continue to pay into the NHS scheme when you return to work, BUT the rules are a changing as from April this year so it is worth checking the new rules.

NB If you "retire and return" you will be on a new contract as they (nhs) actually "re-employ you", but this should not be a problem as they are trying to encourage people to stay. At 60 you will get a tax free lump sum of 3* your annual pension.

Whatever you do do not take any "extra" lump sum as this is not really cost effective. for the later schemes there is no "compulsary" lump sum.

Obviously you will be taxed on your total income which will include your NHS pension.

Just as an asside, I recently went through the "Retire and Return" so I could claim my earlier peniosn and it has been a complete nightmare. Despite filling in the relevant AW8 forms and R&R request forms with 3 months notice, everything that could could go wrong did. In fact nothing went right, from delays in payments, removed from all their systems, unable to get paid for work already completed etc. etc. To date 200+ emails and many hours on the telephone and sending 4 official complaints to various departments trying to sort things out! (It took one GP I know 8 months before they actually got their first pension payment!).

...but you may be lucky..?

Thanks this is what I wanted to know 😊 according to the info I've got if I retire and return onto a new contract I will be enrolled on the 2015 scheme because I'm a transition member who is on both at the moment 

I have heard so many nightmare stories of people trying to claim their pension and not getting paid 😳 this is what happens when you outsource it to a company and don't keep it in-house. I suppose I would have my wages to live on while I waited though 🤷‍♀️

Edited to add I was going to take the smaller lump sum and pay off the last bit of my mortgage 

Since the 95 scheme closed in April 2022 there is simply no benefit in not taking your 95 pension once you've reached the NRA of 60. You cannot accrue any more years in it and you don't receive any uplift in pension for deferring. Whilst it is true there is likely to be a significant pay rise in April 23, so increasing the salary used to calculate your pension, to take any benefit from this you would need to work at least another year.  Being in receipt of the pension income for twelve months will by far outweigh any benefit from waiting and having a slightly larger starting pension. The only caveat would be if you knew you were in line for a significant promotion in the not too distant future and you didn't mind working a little longer.

Since April 2022 your pension contributions have been towards the 2015 scheme, you don't have to take this pension at the same time as the 95 pension. Under current rules with retire and return you would not be allowed to contribute to the 2015 scheme however new rules from April 2023 mean that if you retire and return you can now pay into the 2015 pension scheme. Also, although this wouldn't apply to you as you're over the NRA for the 95 scheme, abatement has also been suspended until April 2025. 

Thanks for the explanation it was very helpful. I'm a band 2 HCA and definitely won't be in line for any promotions. I had read that I could contribute to the 2015 pension on retire and return but I couldn't remember exactly what it said, it was something about being a transitional member. I was going to wait until after April anyway as I'm not 60 until June and I did get a letter telling me the rules were changing but I can't find it now 🙄
I didn't realise the 1995 pension had closed and that I was now paying into the 2015.i might as well take it then I think 😊

Onebrokelady

CKhalvashi said:

Stubod said:

I don't think there is much of a financial "gain" by not taking your 1995 pension at 60. Under current rules if you are in the 1995 scheme you can't continue to pay into the NHS scheme when you return to work, BUT the rules are a changing as from April this year so it is worth checking the new rules.

NB If you "retire and return" you will be on a new contract as they (nhs) actually "re-employ you", but this should not be a problem as they are trying to encourage people to stay. At 60 you will get a tax free lump sum of 3* your annual pension.

Whatever you do do not take any "extra" lump sum as this is not really cost effective. for the later schemes there is no "compulsary" lump sum.

Obviously you will be taxed on your total income which will include your NHS pension.

Just as an asside, I recently went through the "Retire and Return" so I could claim my earlier peniosn and it has been a complete nightmare. Despite filling in the relevant AW8 forms and R&R request forms with 3 months notice, everything that could could go wrong did. In fact nothing went right, from delays in payments, removed from all their systems, unable to get paid for work already completed etc. etc. To date 200+ emails and many hours on the telephone and sending 4 official complaints to various departments trying to sort things out! (It took one GP I know 8 months before they actually got their first pension payment!).

...but you may be lucky..?

It's about 7% to wait an extra few years so not huge. Mom has been told she can't pay into the pension scheme (but doesn't really want/need to on retirement).

The lump sum is the reason she is going. At the moment she has most of it to pay off on a mortgage, but as an example, to retire from an 8a position at 62 with 31 years to go into a band 7 job on a 60% contract, she's about £200 down monthly in cash terms but without a £1000-ish mortgage, so £800 up (plus without the stress of significant additional responsibilities). She dropped a day (to 80%) for a few years when Agenda for Change came in but I'm not sure if this will be relevant to you. This will be very person specific so I can only provide her experience with this.

This has been specifically been planned in this case with around 5 months notice, and I can't really update you for a few months on this case. It may be prudent to have a few months expenses to one side just in case. The pension people do seem quite proactive (I'm far better with numbers than she is therefore have been called on for advice) but I can't confirm this will translate to reality.

Hi thanks again for the info it's very useful 😊I am a band 2 HCA and my plan is to take the smaller lump sum and use some of it to pay off the last bit of my mortgage which is now £8,474.00 then carry on working at my current hours of 22.5 a week. I am currently living on a very low budget and paying off my mortgage now would free up that money to put towards other outgoings. I just didn't want to make a big mistake but from other info in this thread it sound like I might as well take it  now. I am 60 in June so would have to get it started now I think or do I have to wait until I'm actually 60 in June. Also if I'm returning to work I would still have my current level of income so would it matter if the pension payment was delayed 

Pat38493

Onebrokelady said:

I didn't realise the 1995 pension had closed and that I was now paying into the 2015.i might as well take it then I think 😊

Neither did my wife - I think she retired a month later after the scheme was closed which as mentioned above was probably completely pointless, but actually she didn't really know about all these things.  NHS Pensions claimed that they had written to her to inform her but she says she never received it so it was lost in the post if they did.

CKhalvashi

Onebrokelady said:

CKhalvashi said:

Stubod said:

I don't think there is much of a financial "gain" by not taking your 1995 pension at 60. Under current rules if you are in the 1995 scheme you can't continue to pay into the NHS scheme when you return to work, BUT the rules are a changing as from April this year so it is worth checking the new rules.

NB If you "retire and return" you will be on a new contract as they (nhs) actually "re-employ you", but this should not be a problem as they are trying to encourage people to stay. At 60 you will get a tax free lump sum of 3* your annual pension.

Whatever you do do not take any "extra" lump sum as this is not really cost effective. for the later schemes there is no "compulsary" lump sum.

Obviously you will be taxed on your total income which will include your NHS pension.

Just as an asside, I recently went through the "Retire and Return" so I could claim my earlier peniosn and it has been a complete nightmare. Despite filling in the relevant AW8 forms and R&R request forms with 3 months notice, everything that could could go wrong did. In fact nothing went right, from delays in payments, removed from all their systems, unable to get paid for work already completed etc. etc. To date 200+ emails and many hours on the telephone and sending 4 official complaints to various departments trying to sort things out! (It took one GP I know 8 months before they actually got their first pension payment!).

...but you may be lucky..?

It's about 7% to wait an extra few years so not huge. Mom has been told she can't pay into the pension scheme (but doesn't really want/need to on retirement).

The lump sum is the reason she is going. At the moment she has most of it to pay off on a mortgage, but as an example, to retire from an 8a position at 62 with 31 years to go into a band 7 job on a 60% contract, she's about £200 down monthly in cash terms but without a £1000-ish mortgage, so £800 up (plus without the stress of significant additional responsibilities). She dropped a day (to 80%) for a few years when Agenda for Change came in but I'm not sure if this will be relevant to you. This will be very person specific so I can only provide her experience with this.

This has been specifically been planned in this case with around 5 months notice, and I can't really update you for a few months on this case. It may be prudent to have a few months expenses to one side just in case. The pension people do seem quite proactive (I'm far better with numbers than she is therefore have been called on for advice) but I can't confirm this will translate to reality.

Hi thanks again for the info it's very useful 😊I am a band 2 HCA and my plan is to take the smaller lump sum and use some of it to pay off the last bit of my mortgage which is now £8,474.00 then carry on working at my current hours of 22.5 a week. I am currently living on a very low budget and paying off my mortgage now would free up that money to put towards other outgoings. I just didn't want to make a big mistake but from other info in this thread it sound like I might as well take it  now. I am 60 in June so would have to get it started now I think or do I have to wait until I'm actually 60 in June. Also if I'm returning to work I would still have my current level of income so would it matter if the pension payment was delayed 

Not sure about your band, but you need 1 day of 'unemployment' and then can only return 16 hours for the first month I am informed.

Check this as it may not apply to you.

Onebrokelady

Pat38493 said:

Onebrokelady said:

I didn't realise the 1995 pension had closed and that I was now paying into the 2015.i might as well take it then I think 😊

Neither did my wife - I think she retired a month later after the scheme was closed which as mentioned above was probably completely pointless, but actually she didn't really know about all these things.  NHS Pensions claimed that they had written to her to inform her but she says she never received it so it was lost in the post if they did.

I haven't had any letters and wouldn't have known if I hadn't posted this question 🤷‍♀️

kaMelo

CKhalvashi said:

Onebrokelady said:

CKhalvashi said:

Stubod said:

I don't think there is much of a financial "gain" by not taking your 1995 pension at 60. Under current rules if you are in the 1995 scheme you can't continue to pay into the NHS scheme when you return to work, BUT the rules are a changing as from April this year so it is worth checking the new rules.

NB If you "retire and return" you will be on a new contract as they (nhs) actually "re-employ you", but this should not be a problem as they are trying to encourage people to stay. At 60 you will get a tax free lump sum of 3* your annual pension.

Whatever you do do not take any "extra" lump sum as this is not really cost effective. for the later schemes there is no "compulsary" lump sum.

Obviously you will be taxed on your total income which will include your NHS pension.

Just as an asside, I recently went through the "Retire and Return" so I could claim my earlier peniosn and it has been a complete nightmare. Despite filling in the relevant AW8 forms and R&R request forms with 3 months notice, everything that could could go wrong did. In fact nothing went right, from delays in payments, removed from all their systems, unable to get paid for work already completed etc. etc. To date 200+ emails and many hours on the telephone and sending 4 official complaints to various departments trying to sort things out! (It took one GP I know 8 months before they actually got their first pension payment!).

...but you may be lucky..?

It's about 7% to wait an extra few years so not huge. Mom has been told she can't pay into the pension scheme (but doesn't really want/need to on retirement).

The lump sum is the reason she is going. At the moment she has most of it to pay off on a mortgage, but as an example, to retire from an 8a position at 62 with 31 years to go into a band 7 job on a 60% contract, she's about £200 down monthly in cash terms but without a £1000-ish mortgage, so £800 up (plus without the stress of significant additional responsibilities). She dropped a day (to 80%) for a few years when Agenda for Change came in but I'm not sure if this will be relevant to you. This will be very person specific so I can only provide her experience with this.

This has been specifically been planned in this case with around 5 months notice, and I can't really update you for a few months on this case. It may be prudent to have a few months expenses to one side just in case. The pension people do seem quite proactive (I'm far better with numbers than she is therefore have been called on for advice) but I can't confirm this will translate to reality.

Hi thanks again for the info it's very useful 😊I am a band 2 HCA and my plan is to take the smaller lump sum and use some of it to pay off the last bit of my mortgage which is now £8,474.00 then carry on working at my current hours of 22.5 a week. I am currently living on a very low budget and paying off my mortgage now would free up that money to put towards other outgoings. I just didn't want to make a big mistake but from other info in this thread it sound like I might as well take it  now. I am 60 in June so would have to get it started now I think or do I have to wait until I'm actually 60 in June. Also if I'm returning to work I would still have my current level of income so would it matter if the pension payment was delayed 

Not sure about your band, but you need 1 day of 'unemployment' and then can only return 16 hours for the first month I am informed.

Check this as it may not apply to you.

This is something that's currently suspended until April 2023, In response to consultation on pension easements, NHS employers pushed for that rule to be abolished and the Government is putting together proposals for it's permanent removal from April 2023.

Governments response to consultations.
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

CKhalvashi

kaMelo said:

CKhalvashi said:

Onebrokelady said:

CKhalvashi said:

Stubod said:

I don't think there is much of a financial "gain" by not taking your 1995 pension at 60. Under current rules if you are in the 1995 scheme you can't continue to pay into the NHS scheme when you return to work, BUT the rules are a changing as from April this year so it is worth checking the new rules.

NB If you "retire and return" you will be on a new contract as they (nhs) actually "re-employ you", but this should not be a problem as they are trying to encourage people to stay. At 60 you will get a tax free lump sum of 3* your annual pension.

Whatever you do do not take any "extra" lump sum as this is not really cost effective. for the later schemes there is no "compulsary" lump sum.

Obviously you will be taxed on your total income which will include your NHS pension.

Just as an asside, I recently went through the "Retire and Return" so I could claim my earlier peniosn and it has been a complete nightmare. Despite filling in the relevant AW8 forms and R&R request forms with 3 months notice, everything that could could go wrong did. In fact nothing went right, from delays in payments, removed from all their systems, unable to get paid for work already completed etc. etc. To date 200+ emails and many hours on the telephone and sending 4 official complaints to various departments trying to sort things out! (It took one GP I know 8 months before they actually got their first pension payment!).

...but you may be lucky..?

It's about 7% to wait an extra few years so not huge. Mom has been told she can't pay into the pension scheme (but doesn't really want/need to on retirement).

The lump sum is the reason she is going. At the moment she has most of it to pay off on a mortgage, but as an example, to retire from an 8a position at 62 with 31 years to go into a band 7 job on a 60% contract, she's about £200 down monthly in cash terms but without a £1000-ish mortgage, so £800 up (plus without the stress of significant additional responsibilities). She dropped a day (to 80%) for a few years when Agenda for Change came in but I'm not sure if this will be relevant to you. This will be very person specific so I can only provide her experience with this.

This has been specifically been planned in this case with around 5 months notice, and I can't really update you for a few months on this case. It may be prudent to have a few months expenses to one side just in case. The pension people do seem quite proactive (I'm far better with numbers than she is therefore have been called on for advice) but I can't confirm this will translate to reality.

Hi thanks again for the info it's very useful 😊I am a band 2 HCA and my plan is to take the smaller lump sum and use some of it to pay off the last bit of my mortgage which is now £8,474.00 then carry on working at my current hours of 22.5 a week. I am currently living on a very low budget and paying off my mortgage now would free up that money to put towards other outgoings. I just didn't want to make a big mistake but from other info in this thread it sound like I might as well take it  now. I am 60 in June so would have to get it started now I think or do I have to wait until I'm actually 60 in June. Also if I'm returning to work I would still have my current level of income so would it matter if the pension payment was delayed 

Not sure about your band, but you need 1 day of 'unemployment' and then can only return 16 hours for the first month I am informed.

Check this as it may not apply to you.

This is something that's currently suspended until April 2023, In response to consultation on pension easements, NHS employers pushed for that rule to be abolished and the Government is putting together proposals for it's permanent removal from April 2023.

Governments response to consultations.
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

Thank you for confirming, as above, this is for retirement in June.

I will pass this on equally as it's useful stuff.

Wideman_narrowboat

Onebrokelady said:

Pat38493 said:

Onebrokelady said:

I didn't realise the 1995 pension had closed and that I was now paying into the 2015.i might as well take it then I think 😊

Neither did my wife - I think she retired a month later after the scheme was closed which as mentioned above was probably completely pointless, but actually she didn't really know about all these things.  NHS Pensions claimed that they had written to her to inform her but she says she never received it so it was lost in the post if they did.

I haven't had any letters and wouldn't have known if I hadn't posted this question 🤷‍♀️

NHS Pensions are far from perfect, but to completely fair them you started this thread with a picture of a letter that they have sent you. The 4th paragraph of that letter clearly states that you have moved over to the 2015 Scheme...