NHS Pension

PoGee

Is it possible to resign prior to official nhs retirement age of 60 and not draw your nhs pension until you reach age 60? Pension pot mainly in 1995 scheme and 2015 (from McCloud date judgment, whatever that date is). There was something in the news saying 'Treasury delays NHS scheme McCloud remedy to October 2023' - what does that mean?
Are there any pitfalls to resigning, other than no salary and probable reduction in final pension figures? 

Dazed_and_C0nfused

PoGee said:

Is it possible to resign prior to official nhs retirement age of 60 and not draw your nhs pension until you reach age 60? Pension pot mainly in 1995 scheme and 2015 (from McCloud date judgment, whatever that date is). There was something in the news saying 'Treasury delays NHS scheme McCloud remedy to October 2023' - what does that mean?
Are there any pitfalls to resigning, other than no salary and probable reduction in final pension figures? 

There is no pension "pot" with the 1995 or 2015 NHS schemes.

You can't be forced to take your pension before the normal pension age for the scheme.

There won't be a "reduction" in your pension because of resigning, you'll get what you have accrued to the point you are paid till i.e. when you resign.

There would be a reduction if you took the pension before NPA.  That's simply to reflect the fact that you would be asking for it to be paid for longer.

The October 2023 date is allowing pension schemes time to implement the changes.  It doesn't alter the choices you will have.

GrubbyGirl_2

I retired in January 2020 when I was 60 but I actually left at the end of September 2019 because I couldn’t face the pressure of working another winter. There is absolutely no problem doing that. 

PoGee

GrubbyGirl_2 said:

I retired in January 2020 when I was 60 but I actually left at the end of September 2019 because I couldn’t face the pressure of working another winter. There is absolutely no problem doing that. 

Thanks for reply. Was there much of a difference in the pension when you took it a few months earlier than what it would have been at actual age of 60?

Flugelhorn

PoGee said:

GrubbyGirl_2 said:

I retired in January 2020 when I was 60 but I actually left at the end of September 2019 because I couldn’t face the pressure of working another winter. There is absolutely no problem doing that. 

Thanks for reply. Was there much of a difference in the pension when you took it a few months earlier than what it would have been at actual age of 60?

there are actuarial reduction tables on the NHS pension website that indicate how much you get if you take the pension earlier than NRA in 1995 scheme. https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/GAD_early_and_late_retirement_factors_May_2015.pdf Other option is to leave scheme, defer and take it at 60 (which is what I did) 

littleboo

I think what GrubbyGirl_2 is saying is that they left aged 59 and drew their pension a few months later when aged 60

Stubod

Mrs Stubod retired at 58 but deferred her NHS pension for 2 years until 60 (1995 scheme), as we did not need the money at the time and this gave an increase in both the final lump sum and the actual pension payment. I think the McCloud ruling is more to do with the 2008 and 2015 schemes??

GrubbyGirl_2

littleboo said:

I think what GrubbyGirl_2 is saying is that they left aged 59 and drew their pension a few months later when aged 60

Indeed that's correct.  I just lived off savings for 4 months

GrubbyGirl_2

PoGee said:

GrubbyGirl_2 said:

I retired in January 2020 when I was 60 but I actually left at the end of September 2019 because I couldn’t face the pressure of working another winter. There is absolutely no problem doing that. 

Thanks for reply. Was there much of a difference in the pension when you took it a few months earlier than what it would have been at actual age of 60?

I didn't take my pension early and I wouldn't advise you to do that.  I just left 4 months early and lived off my savings and then drew my pension at the normal pension age.  I paid into the NHS pension scheme for 42 years so not paying for 4 months would not have had any discernable impact on my pension, however If I'd drawn my pension 4 months early I would have lost 5% of my pension and 3% of lump sum which would have been significant

Andy_L

PoGee said:

Is it possible to resign prior to official nhs retirement age of 60 and not draw your nhs pension until you reach age 60? Pension pot mainly in 1995 scheme and 2015 (from McCloud date judgment, whatever that date is). There was something in the news saying 'Treasury delays NHS scheme McCloud remedy to October 2023' - what does that mean?
Are there any pitfalls to resigning, other than no salary and probable reduction in final pension figures? 

The 2015 scheme has better annual revaluation (CPI + 1.5%) for active members compared to people who have left (CPI). Since its retirement age is the same as state pension age that's 8+ years missing out on that cumulative 1.5%

For the 95 scheme it will increase by inflation which may well be better than the link to salary.

Flugelhorn

Andy_L said:

For the 95 scheme it will increase by inflation which may well be better than the link to salary.

This is what DH had - the inflation increase was definitely better than any link to the salary he had when he left in 2015. The pension increased by 50% whereas the salary most definitely wouldn't have done