delivering value to the NHS Delivering value to the NHS 1 © copyright NHS Shared Business Services Ltd 2010 Pension Scheme

delivering value to the NHS Delivering value to the NHS 2 © copyright NHS Shared Business Services Ltd 2010 NHS Pension Scheme From 01 April 2008 there have been two sections to the pension scheme : section 2008 section

delivering value to the NHS Delivering value to the NHS 3 © copyright NHS Shared Business Services Ltd 2010 Which section will I belong to? 1995 section  Current members who joined the scheme before 01 April ’08  Deferred members who rejoined before 30 Sept ’08  Deferred members who rejoin after 30 Sept ’08 with a break of <5 yrs 2008 section  New members from 01 April ’08  Deferred members who rejoin after 30 Sept ’08 with a break of >5 yrs Members of the 1995 section will be given the choice of transferring to the 2008 section

delivering value to the NHS 4 © copyright NHS Shared Business Services Ltd 2010 NHS Pension Scheme – 1995 section  Final Salary 80th scheme – based on best of last 3 years pensioned pay  Survivor benefits extended  Flexibility to increase lump sum in return for a smaller pension  Tiered contribution rates 5% to 8.5%  Membership limit increased  Added years replaced by ‘Additional Pension’ purchase  Step Down

delivering value to the NHS Delivering value to the NHS 5 © copyright NHS Shared Business Services Ltd 2010 NHS Pension Scheme The amount of your pension depends on two factors :- 1)Your pensionable pay at or near retirement 2)The number of years you have been in the scheme 1995 section2008 section Best of the last 3 yearsAnnual average of best 3 consecutive years in last 10 – re-valued for RPI

delivering value to the NHS 6 © copyright NHS Shared Business Services Ltd 2010

delivering value to the NHS 7 © copyright NHS Shared Business Services Ltd 2010 NHS Pension Scheme Membership History An Employee – SD 75/ FromToContractYearsDays 01/02/199931/03/2006Whole Time759 01/04/200631/03/2009Whole Time30 Total Membership 1059

delivering value to the NHS 8 © copyright NHS Shared Business Services Ltd 2010 Calculating Your Pension – Whole Time Pensionable pay = x 12 = £28, Membership = 10 yrs 59 days = 3,709 days 80 years x 365 = 29,200 days Benefits £28, x 3,709 = £3, Pension 29,200 £10, Lump Sum Survivor’s Pension NHS Pension Scheme (1995 section)

delivering value to the NHS 9 © copyright NHS Shared Business Services Ltd 2010 NHS Pension Scheme FromToContractYearsDays 01/02/199931/03/2006Whole Time /04/200631/03/2009Part Time1183 Total Membership 8242 Membership History An Employee – SD 75/123456

delivering value to the NHS 10 © copyright NHS Shared Business Services Ltd 2010 Calculating Your Pension – Part Time Notional Whole Time = £28, Membership = 8 yrs 242 days = 3,162 days 80 years x 365 = 29,200 days Benefits £28, x 3,162 = £3, Pension 29,200 £9, Lump Sum Survivor’s Pension NHS Pension Scheme (1995 section)

delivering value to the NHS 11 © copyright NHS Shared Business Services Ltd 2010 NHS Pension Scheme – 2008 section  Greater flexibility  Take part of pension while continuing to work (in a less demanding role?)  Value of pension protected  Pension builds at a faster rate  Final Salary 60 th scheme – based on the average of best 3 consecutive years in last ten  Total flexibility on pension commutation (up to 25% of pension value)  Tiered contribution rates 5% to 8.5%  Normal pension age increases to 65, minimum pension age to 55  Membership limit increased

delivering value to the NHS 12 © copyright NHS Shared Business Services Ltd 2010 Calculating Your Pension – Whole Time Pensionable pay = x 12 = £28, Membership = 10 yrs 59 days = 3,709 days 60 years x 365 = 21,900 days Benefits £28, x 3,709 = £4, Pension 21,900 Max Lump Sum = 25% of pension value Survivor’s Pension NHS Pension Scheme (2008 section)

delivering value to the NHS 13 © copyright NHS Shared Business Services Ltd 2010 Calculating Your Pension – Part Time Notional Whole Time = £28, Membership = 8 yrs 242 days = 3,162 days 60 years x 365 = 21,900 days Benefits £28, x 3,162 = £4, Pension 21,900 Max Lump Sum = 25% of pension value Survivor’s Pension NHS Pension Scheme (2008 section)

delivering value to the NHS 14 © copyright NHS Shared Business Services Ltd 2010 Claiming your benefits  Agree a retirement date with your manager  You must terminate your NHS employment  Contact your pensions team four months before your retirement date  NHS Pensions will advise you of your initial award  Pension and Lump Sum are paid by Paymaster  Final award will follow after retirement  Your pension will be index linked

delivering value to the NHS 15 © copyright NHS Shared Business Services Ltd 2010 Working after retirement  Terminate all your employments  Have a break in employment  Re-employed on a new contract  No more than 16hrs per week in first month following retirement  If you are ‘Special Class’ and retire before age 60 the sum of your pension and the pay in your new job must not exceed your earnings prior to retirement  New employment will not be pensionable – if retiring from 1995 section  New employment can be pensionable – if retiring from 2008 section

delivering value to the NHS 16 © copyright NHS Shared Business Services Ltd 2010 Summary  Discuss your retirement date with your manager  Discuss, if appropriate, re-employment with your manager  Notify the pensions team four months before your retirement date  Indexation applied in April of each year  Advise Paymaster of any change in circumstances  Information and calculators available on NHS Pensions website   Contact us on