NHS pension/McCloud decision

Andreablades

Hello. 
Please be gentle with me I need any answers in idiot speak as I've been looking at this for the last 4 hours and I'm more confused than ever. 
So as you knowlegable people will be aware NHS pensions are asking for a decision regarding potentially moving benefits back to the 1995 section or keeping them in the 2008 section (which I opted into) prior to the 2015 pension scheme following the McCloud ruling. 
I would love to retire at 60 but at this stage not sure if financially viable , so am I better choosing that option (1995 section - retire at 60) with the potential to go later if needed or would I be better with the 2008 section (65 retirement) and go earlier if possible but then I presume be hit with a big penalty. 
I'm 55, joined the NHS and pension scheme in 1995 and have always worked full time. Currently a Band 4 (27596) and won't be going any higher. 

Thanks in advance. 
Andrea

hyubh

Andreablades said:

So as you knowlegable people will be aware NHS pensions are asking for a decision regarding potentially moving benefits back to the 1995 section or keeping them in the 2008 section (which I opted into) prior to the 2015 pension scheme following the McCloud ruling.

Not saying you're not being offered this, but is that definitely the choice being given? The McCloud remedy itself is about giving the choice of final salary or CARE scheme accrual for the 2015-2022 service period.

Yorkie1

I appreciate it's a different pension scheme, but in the civil service the choice only has to be made at the point you retire (take your first part of pension, if you have multiple schemes that have different retirement ages) / or already for existing pensioners. For everyone a quotation for each scenario is to be provided, to help you make the decision.

Is it definitely the case that you current employees are a) being expected to make the decision before reaching retirement decision; and b) without comparative quotations / illustrations?

Purplelady65

I think you are confusing the options available to you. If you were in the 2008 scheme then your choice re your service from 2015 to 2022 is to keep it in the 2015 CARE scheme or move it back into the 2008 scheme. If you were in the 1995 scheme then your choice re your service from 2015 to 2022 is to keep it in the 2015 CARE scheme or move it back into the 1995 scheme.  There is not an option to move your 2008 pension to the 1995 pension scheme. My understanding is at the moment it is only at the point of retirement that you would have to decide which option to go with. Out of interest why did you opt into the 2008 scheme and out of the 1995 scheme?   

Andreablades

See attached. 

Andreablades

See attached

Flugelhorn

That's interesting - I wonder if this is something else other than McCloud which is specifically to do with the 2015 going back to 1995/2008 ? 

Never did get 2008? - did many people transfer ? I had the CHOICE  documentation but they were unable to give me any figures (apparently 6% of people had the same problem) so I stayed where I was .

Andreablades

Flugelhorn said:

That's interesting - I wonder if this is something else other than McCloud which is specifically to do with the 2015 going back to 1995/2008 ? 

Never did get 2008? - did many people transfer ? I had the CHOICE  documentation but they were unable to give me any figures (apparently 6% of people had the same problem) so I stayed where I was .

At the time of the original choice I had quite a bit of debt and couldn't see there would be anyway I could retire earlier than 67. However I've been debt free for years now and will pay off my mortgage in the next few months so it's now looking more do-able.
There were never any figures as there isn't with this which is why I'm struggling with the decision. 

Sarahspangles

I’m not affected by this personally but I have stressed out colleagues who are! As I understand it they’ve had a choice reinstated due to the McCloud judgement, that requires them to take a judgement on whether they’re more likely to retire closer to 60 than at 65. The decision needs to be made now. One colleague described it as re-replanning her retirement. Overall, team members seem to be leaning towards retiring sooner and returning part time (but that’s not advice, original poster!). 

peter3hg

Flugelhorn said:

That's interesting - I wonder if this is something else other than McCloud which is specifically to do with the 2015 going back to 1995/2008 ? 

Never did get 2008? - did many people transfer ? I had the CHOICE  documentation but they were unable to give me any figures (apparently 6% of people had the same problem) so I stayed where I was .

It is part of what they call "contingent decisions" which, as they explain it, are:
... a decision you made or did not make because of actual or perceived implications of the 2015 Scheme reforms. You'd have acted differently if you knew you'd be remaining in the 1995/2008 Scheme for the remedy period.

Choice 2 is one of them as is various forms of additional pension and potentially opt-outs from the scheme.

https://www.nhsbsa.nhs.uk/public-service-pensions-remedy-mccloud/contingent-decisions


Personally I'm waiting for a letter detailing a choice around early retirement reduction buy-out (ERRBO) which is one of the contingent decisions.

Andreablades

Sarahspangles said:

I’m not affected by this personally but I have stressed out colleagues who are! As I understand it they’ve had a choice reinstated due to the McCloud judgement, that requires them to take a judgement on whether they’re more likely to retire closer to 60 than at 65. The decision needs to be made now. One colleague described it as re-replanning her retirement. Overall, team members seem to be leaning towards retiring sooner and returning part time (but that’s not advice, original poster!). 

That's what I was thinking of doing as well.