NHS Pension (and calculation)

Sew_Late

Hi 

I want to claim my NHS pension but return to work.  This is one of my options: I partially retire and I have to reduce my pensionable pay by 10%.  I'm aiming to start partial retirement end of Oct.  Please could someone help me work out the calculation (and explain it to me) of what I will lose in terms of pay and hours.  I work 37.5.  I need to know if my pension will cover the difference that I lose and if so by how much.  I don't have long service.  HR won't help.   

So: 

Is that 10% less hours? 
What does pensionable pay mean?
  
I earn: 
£35,392.00 pa

Last month: 
Basic pay was £2,949.33
Fringe £147.47
PAYE £347.80
NI £163.90
Pension £303.49

Net pay was £2281.61

Is there any other info needed to work this out? 

Thank you so much.  
  

DE_612183

it should say on your payslip what your pensionable pay is, also have you checked the civil service pension website?

hugheskevi

I want to claim my NHS pension but return to work.    

To confirm that you are at least 55 years of age?

What does pensionable pay mean?

  
I earn: 
£35,392.00 pa

Last month: 
Basic pay was £2,949.33
Fringe £147.47
PAYE £347.80
NI £163.90
Pension £303.49

Net pay was £2281.61

Both your Basic pay and your Fringe pay (for working in a high cost supplement area) are pensionable. The combined amount, so £37,161.64, is your annual pensionable earnings.

This is one of my options: I partially retire and I have to reduce my pensionable pay by 10%.  I'm aiming to start partial retirement end of Oct.  Please could someone help me work out the calculation (and explain it to me) of what I will lose in terms of pay and hours.  I work 37.5. 

...

Is that 10% less hours? 

To reduce your pensionable pay you can change your level of responsibility, work fewer hours, or move to a new role.

Assume you choose to work fewer hours. You would reduce to 33.75 or less hours per week. Let's say you agree with your employer to work 32.5 hours per week. That would reduce your earnings to (32.5 / 37.5) * £37,161.64 = £32,205.75 p/a.

As you are earning less, your pension contribution rate would fall to 8.3% (note - I assumed 32.5 hours so that you pay a lower pension contribution rate, if you worked more you would pay 9.8%. I also assume your Fringe pay would be reduced in proportion to your part-time hours, but you should check that).

This would result in a monthly net salary of £2,047.59, which is a reduction of £234.02 from your current net income.

Sew_Late

hugheskevi said:

I want to claim my NHS pension but return to work.    

To confirm that you are at least 55 years of age?

What does pensionable pay mean?

  
I earn: 
£35,392.00 pa

Last month: 
Basic pay was £2,949.33
Fringe £147.47
PAYE £347.80
NI £163.90
Pension £303.49

Net pay was £2281.61

Both your Basic pay and your Fringe pay (for working in a high cost supplement area) are pensionable. The combined amount, so £37,161.64, is your annual pensionable earnings.

This is one of my options: I partially retire and I have to reduce my pensionable pay by 10%.  I'm aiming to start partial retirement end of Oct.  Please could someone help me work out the calculation (and explain it to me) of what I will lose in terms of pay and hours.  I work 37.5. 

...

Is that 10% less hours? 

To reduce your pensionable pay you can change your level of responsibility, work fewer hours, or move to a new role.

Assume you choose to work fewer hours. You would reduce to 33.75 or less hours per week. Let's say you agree with your employer to work 32.5 hours per week. That would reduce your earnings to (32.5 / 37.5) * £37,161.64 = £32,205.75 p/a.

As you are earning less, your pension contribution rate would fall to 8.3% (note - I assumed 32.5 hours so that you pay a lower pension contribution rate, if you worked more you would pay 9.8%. I also assume your Fringe pay would be reduced in proportion to your part-time hours, but you should check that).

This would result in a monthly net salary of £2,047.59, which is a reduction of £234.02 from your current net income.

hugheskevi said:

I want to claim my NHS pension but return to work.    

To confirm that you are at least 55 years of age?

What does pensionable pay mean?

  
I earn: 
£35,392.00 pa

Last month: 
Basic pay was £2,949.33
Fringe £147.47
PAYE £347.80
NI £163.90
Pension £303.49

Net pay was £2281.61

Both your Basic pay and your Fringe pay (for working in a high cost supplement area) are pensionable. The combined amount, so £37,161.64, is your annual pensionable earnings.

This is one of my options: I partially retire and I have to reduce my pensionable pay by 10%.  I'm aiming to start partial retirement end of Oct.  Please could someone help me work out the calculation (and explain it to me) of what I will lose in terms of pay and hours.  I work 37.5. 

...

Is that 10% less hours? 

To reduce your pensionable pay you can change your level of responsibility, work fewer hours, or move to a new role.

Assume you choose to work fewer hours. You would reduce to 33.75 or less hours per week. Let's say you agree with your employer to work 32.5 hours per week. That would reduce your earnings to (32.5 / 37.5) * £37,161.64 = £32,205.75 p/a.

As you are earning less, your pension contribution rate would fall to 8.3% (note - I assumed 32.5 hours so that you pay a lower pension contribution rate, if you worked more you would pay 9.8%. I also assume your Fringe pay would be reduced in proportion to your part-time hours, but you should check that).

This would result in a monthly net salary of £2,047.59, which is a reduction of £234.02 from your current net income.

Thank you so much, that's a massive help.  I'm 61.