NHS Pension

Threesheds

Thanks for the input, and putting me in the correct Forum.  🤔
She spent two years in the NHS before leaving to do a Degree, her 24 years started in the early 1990's so I guess she on the 1995 scheme. So from what I can gather, yes she is best claiming at 60, and perhaps reinvesting in a SIPP or similar.
She recently recounted the tale to me of receiving her 25 year award. Only for it to be withdrawn shortly after, as they realised she had taken an Education break ! 🫨

spaniel101

Just this for good measure...

As she is a long standing fully Deferred member, if she were to take it after her NRA (60), the pension payments would indeed be backdated to her NRA (note, this is not the case for 'active members' as opposed to fully Deferred), however the backdated pension would also be taxed at her marginal rate.   This may be a factor in tax planning (1 example notably spanning over 2 financial years to spread taxable income).



https://faq.nhsbsa.nhs.uk/knowledgebase/article/KA-04594/en-us

Will my pension be backdated if I claim it after my Normal Pension Age (NPA)?

This depends on when you left NHS employment.

If you’ve not worked in the NHS since your NPA, your pension will be backdated to your NPA. You’ll receive a mandatory taxable back payment of your pension benefits. You cannot choose the date your back payment of benefits will be paid into your account.

If you’re an active member of the NHS Pension Scheme, your benefits will only become payable when you leave NHS employment. There is no backdating of pension to your NPA.

If you opted out of the 1995 or 2008 Section of the NHS Pension Scheme but continued to work in the NHS until after your NPA, your pension benefits from that Section of the Scheme can only be paid from when you leave NHS employment or if it's been 5 years since the date you last paid in. You’ll not be entitled to have your pension backdated unless you’ve opted out for a period of 5 years after your NPA. 

If you want to start claiming your NHS pension and return to NHS employment, there’s restrictions that apply when returning to work after retirement.

Threesheds

Thanks Spaniel,
That does explain a lot. Not least NRA/NPA, which I for one did not realise what it was an acronym for.