NHS 1995 PENSION

Gingernut541945

I am leaving my current post as I need to have less pressure. I will be going down a grade which affects my final salary. I understand it is the best of the last 3 years so I can only stay in new job for 2 years to keep max pension unless I opt out. Can I take job and opt out of pension before 2 years is up? or should I opt out straight away?

hugheskevi

See section "Stepping down into a lower paid job" at this link - https://www.bma.org.uk/pay-and-contracts/pensions/retirement/your-final-pensionable-pay

Bobinyorkshire

Used ‘step down’. Worked well and increased each year by Sept CPI which far exceeded wage award

kaMelo

Opting in/out has no effect on your accrued 1995 pension entitlement, you stopped paying into that in April 2022 and have been contributing into the 2015 scheme since then. Opting out of the 2015 scheme would be a bad idea.

it is possible to protect your 1995 pension entitlement when moving to a lower paying post, whether you would qualify for this is quite specific to your situation, you would have to check the literature on NHSBSA website.

Very important point to note with the 1995 scheme regarding "best of the last three years" You don't get the flexibility that that statement appears to give you and they don't use your quoted annual salary.

The day you choose to start taking your pension benefits, they count back 365 days and that is year one. They count back another 365 days from that point and that is year two, then another 365 days and that is year three They work out your pensionable earnings for each of these three periods of 365 days and take the best one to calculate your pension entitlement.

Understanding that can help you choose what specific date to take your pension benefits, especially if you have additional pensionable enhancements such as night shift, unsocial hours etc. Timing it well can increase your pension entitlement, timing it badly can have a detrimental effect on it.

squirrelpie

The day you choose to start taking your pension benefits, they count back 365 days and that is year one. They count back another 365 days from that point and that is year two, then another 365 days and that is year three They work out your pensionable earnings for each of these three periods of 365 days and take the best one to calculate your pension entitlement.

That seems to contradict what it says in the article @hugheskevi linked to. Which is correct?

saucer

How do they contradict each other? The 1995 pension is based on the best year in the final 3, with the years counting in three whole 365 chunks back from date of retirement.

tamste

I found that setting my leaving date as a Sunday (a non working day for me) meant that I got another 2 days service with the Civil Service Pension. I think the same applies to the NHS pension (?), so if you are not at the maximum service for the scheme, this might be worth considering. Pennies really, but it all adds up over the years.

You will need to check your scheme rules for this.

kaMelo

That seems to contradict what it says in the article @hugheskevi linked to . Which is correct?

https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/How%20to%20calculate%20Total%20Pensionable%20Pay%20V4%2006.13.pdf