NHS PENSIONS - Is my understanding correct?

Naomi54

I plan to retire at age 57.25.(1 year after I have reached my band maximum) I have 20 years service in the 1995 scheme (if I utilise the McCloud judgement) and will have 5 years in the 2015 scheme.

My intention is to stop work at age 57.25 and defer payments of my 1995 pension and lump sum until age 60 and defer my 2015 pension until Age 67  (i.e. State Pension age) thus avoiding any actuarial adjustment in either pension.

Questions?

1. Will my 1995 pension be based on the salary I earn in my final year of employment (whilst I am contributing to the 2015 scheme)?


2. Will my deferred 2015 pension ( which I stop contributing to at age 57.5) be uprated at CPI plus 1.5% between the date I stop working and the date I claim my 2015 pension 9.5 years later at age 67

Any advice welcomed

hyubh

Naomi54 said:

I plan to retire at age 57.25.(1 year after I have reached my band maximum) I have 20 years service in the 1995 scheme (if I utilise the McCloud judgement) and will have 5 years in the 2015 scheme.

My intention is to stop work at age 57.25 and defer payments of my 1995 pension and lump sum until age 60 and defer my 2015 pension until Age 67  (i.e. State Pension age) thus avoiding any actuarial adjustment in either pension.

Questions?

1. Will my 1995 pension be based on the salary I earn in my final year of employment (whilst I am contributing to the 2015 scheme)?

The final salary link is maintained, yes. Whether that comes to be literally the salary you earn in your final year of employment depends on whether that is the best of the final three years, given the 1995 scheme's definition of final pay.

2. Will my deferred 2015 pension ( which I stop contributing to at age 57.5) be uprated at CPI plus 1.5% between the date I stop working and the date I claim my 2015 pension 9.5 years later at age 67

No. The CPI+1.5% only applies while an active member of the scheme.

tacpot12

1. Your 1995 pension will be based on the highest annual salary you earned in your last three years of employment. 

2. Your deferred 2015 pension will be uprated by CPI only between the date you stop working and the date you claim your 2015 pension (you lose the +1.5% by leaving work early). (Your 1995 Pension benefits will also increase in line with CPI)  

Naomi54

Many thanks for the helpful replies

Cobbler_tone

That's a good scheme if that is how the NHS pension works.
My DB scheme closed in 2021 and the salary applied is linked to the time then, plus the RPI growth. There is no link to the salary I am earn today.