NHS staff pension top-up

Sobraon

When the option to buy past added years was removed 14 months ago from the teachers pension scheme I know some eligible people missed out.

The NHS pension scheme is going to bring in similar changes at the end of the month - if you are eligible at least make sure you have considered the option to buy back any 'missed' years.

Telegraph report here -http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/06/cmnhs06.xml

GrannyKate

Hi - I've been reading various posts on NHS pension changes and feel I have to act now but would be grateful for advice.

My current salary in NHS is approx £43,000pa and I will be 60 later this year. I can retire at 60 but will not be doing so as I plan to work to 63/64.

At 31.3.07 I had 18 years in NHS pension scheme
at 19.9.07 I am paying £66 per month into a CIS FSAVC payable at 65 which started in 1998 - current policy value (if I died or transferred is given as £8969.04)

I also have a state pension - cannot find statement at the moment but always paid full stamp except when at home with children under 5.

My concerns/questions are:

I guess I am going to have to pay higher rate of tax or I am very close to it. Not sure what they take off the gross figure.

It will be best to defer my state pension

I should register now to pay more into NHS scheme (but how much?)- I have actually worked for NHS for 23 years but some was part time and some was not fixed hours and you were not able to join then.

Grateful for any thoughts or advice

firesidemaid

if you have worked in the nhs for previous years and either were not able or did not pay contributions for those times then look into it asap.

everything is about to change and some of the options will not be available past the end of this month.

you can find all this info on the nhs pensions website, but it will take a good read through.

the best thing to do is to give them a ring, let them know your situation and they will let you know your options.

some of the early years you can buy back - which may well include you - you can buy back for half price, but you must at least have phoned up and registed an interest before the end of the month.

you can even find the tables which show you the costs of buying back years on the website.

when you mean higher rate of tax do you mean 40% - with 22 years of pension at £43,000 this equates to just under 12k income per annum.

are you staying in the old scheme or joining the new one?

GrannyKate

I will ring our pensions adviser on Tuesday when I am back in the office.

I was referring to my salary and higher rate tax rather than the pension. My coding notice shows 512L for year ending April 2008. It also says that I will pay 40% on anything over £39727 - I assume this figure is after deduction of pension contributions.

Will also look at web site.

Thanks for advice

jem16

GrannyKate wrote: »

I was referring to my salary and higher rate tax rather than the pension. My coding notice shows 512L for year ending April 2008. It also says that I will pay 40% on anything over £39727 - I assume this figure is after deduction of pension contributions.

Yes it would be.