NHS Pension Help Please

djjd70
djjd70 Posts: 25 Forumite
First Post First Anniversary
in Pensions, annuities & retirement planning
Hi all
My partner has worked for the NHS for 30 years and has 'mental health officer status', meaning she can take her pension at 55. She's within 5 years of that now.
Due to ill health, she's thinking of resigning and doing lower stress PT jobs until she gets her pension. When talking to the pensions team today, they said she would lose 21% of her annual pension and 15% of her lump sum by doing that. I could understand if her pension statement said projected benefits, but it says current.
She seems to be given different messages every time she talks to someone about her pension, so just wondering, does anyone know of any IFAs who specialise in NHS pensions that she could sit down with to work out all the pros and cons of her actions with some facts about how the scheme works?
Many thanks.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    djjd70 wrote: »
    and doing lower stress PT jobs

    In the NHS?
  • Dox
    Dox Posts: 3,116 Forumite
    First Anniversary Name Dropper First Post
    djjd70 wrote: »
    Hi all
    My partner has worked for the NHS for 30 years and has 'mental health officer status', meaning she can take her pension at 55. She's within 5 years of that now.
    Due to ill health, she's thinking of resigning and doing lower stress PT jobs until she gets her pension. When talking to the pensions team today, they said she would lose 21% of her annual pension and 15% of her lump sum by doing that. I could understand if her pension statement said projected benefits, but it says current.
    She seems to be given different messages every time she talks to someone about her pension, so just wondering, does anyone know of any IFAs who specialise in NHS pensions that she could sit down with to work out all the pros and cons of her actions with some facts about how the scheme works?
    Many thanks.

    Perhaps instead of talking to people, she might write to them and set out what she's been told/where conflicting 'information' has been given; and ask them to explain in writing which statements are correct, and why her annual pension and lump sum will be reduced when her benefit statement refers to these as current benefits. Hopefully that will bring some clarity.

    Contacting TPAS for free, impartial information (not financial advice) might also be helpful: https://www.pensionsadvisoryservice.org.uk They used to have specialists in major schemes such as the NHS, and may well still have those with excellent knowledge of it.
  • xylophone
    xylophone Posts: 44,394 Forumite
    Name Dropper First Anniversary First Post
    My partner has worked for the NHS for 30 years and has 'mental health officer status', meaning she can take her pension at 55. She's within 5 years of that now.
    Due to ill health, she's thinking of resigning and doing lower stress PT jobs until she gets her pension.

    Presumably she would not qualify for an ill health pension?

    Does she have to resign? What would be the position if she worked fewer hours in her current role?

    What would happen if she left, took a completely different job but left her pension deferred to age 55?

    As previous poster said, best to put her questions about her situation to the administrator in writing.
  • Twoplus
    Twoplus Posts: 43 Forumite
    You wife needs to be doing a job with special class status at age 55 to get her pension without reduction at 55.
    If she gets a job without special class status before 55 she will not be able to access her 1995 pension until age 60 without reduction.
    She could if she is over 50 access her pension now with a reduction and do a different job, may be worth considering.
  • saucer
    saucer Posts: 417 Forumite
    Name Dropper First Post First Anniversary
    edited 15 October 2019 at 5:51PM
    You will find a lot of the information you need is readily available on line e.g. here https://contactcentreservices.nhsbsa.nhs.uk/selfnhsukokb/AskUs_Pensions/en-gb/5073/mental-health-officers-mhos/16542/what-is-mental-health-officer-status-and-who-is-entitled-to-it

    I suspect that when you are referring ‘current’ pension you are forgetting that this is based on what she has built up in entitlement to this (current) point, but not payable until her normal retirement age, which would be at 55 assuming she still has Mental Health Officer status at that point.

    If on the other hand she takes her pension early it will be reduced because it will be in payment for longer.
  • Johnnyboy11
    Johnnyboy11 Posts: 319 Forumite
    First Anniversary First Post
    Twoplus wrote: »
    You wife needs to be doing a job with special class status at age 55 to get her pension without reduction at 55.
    If she gets a job without special class status before 55 she will not be able to access her 1995 pension until age 60 without reduction.
    She could if she is over 50 access her pension now with a reduction and do a different job, may be worth considering.
    Worth pointing out: "No cost of living increases will be applied to the pension until age 55 ", from here: https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/ARER%20factsheet%20%2803.2017%29%20V7.pdf
  • kangoora
    kangoora Posts: 1,193 Forumite
    First Anniversary First Post Name Dropper
    Is it an option to move to a less stressful job without Mental Health Officer status within the NHS now. Then work for 4 years at this, then re-appy for a job with Mental Health Officer status at 54 with the intention of toughing it out for a year to be able to take a non reduced pension at 55?

    Presumably, if she is a valued member of the team she would have an 'inside track' to being re-recruited - as long as she doesn't tell them the reason why :D

    Downside might be she doesn't get re-recruited and have to work to 60 or take the pension reduced at 55.

    I have no idea if this would be a viable option, either for the OPs wifes stress levels or even if this can be done using the NHS pension arrangements. I am just wondering if this would be possible?
  • gwynlas
    gwynlas Posts: 1,704 Forumite
    First Post First Anniversary Name Dropper
    She is already talking to the pension team who are giving her the correct advice. I was able to retire early through redundancy but had to sacrifice most of my lump sum. She can only retire and recieve pension at 55 if in special status role otherwise itt is deferred. If extremely unwell might be retired on ill health grounds but this is very difficult to get these days due to advances in treatment. If at all possible it is better for her to stick it out until 55 even if taking periods off sick.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards