1. NHS PENSION SCHEME Pre-Retirement Course 2017

2. Reasons for Retirement
Retirement at NHS Normal Pensionable Age or Above
Termination under Pensionable Age
- Ill-Health Retirement
- Redundancy
- Voluntary Early Retirement (VER with reduction)

3. Normal Age Retirement Pensionable Service and Pensionable Pay
- Are used to calculate
- YOUR PENSION &
- YOUR LUMP SUM (Tax Free)

4. Pensionable Service Period of time paying pension contributions
Part-Time service is converted to Whole Time Equivalent service

5. Which Scheme?
Currently there are 3 sections to the NHS Pension Scheme. Each section is fundamentally different.
1995 & 2008 sections and 2015 scheme
The Normal Pension Age (NPA) differs in each scheme:
1995 section NPA = 60
2008 section NPA = 65
2015 scheme NPA = State Pension Age

6. Pensionable Pay 1995 section
Is the last 12 months Pensionable Pay i.e. the previous 365 days pay. Best of last 3 years (1995 scheme)
The Notional Whole Time salary (NWT) is calculated for part time staff
Half Sick Pay is deemed to Full Pay

7. Pension & Lump Sum (1995) PENSION CALCULATION:-
1/80 of Pensionable Pay for each year of Pensionable Service (WTE)
LUMP SUM CALCULATION:-
3/80 of Pensionable Pay for each year of Pensionable Service (WTE)
Exception married men before – Lump Sum 1/80

8. Example 1- 1995 Section Full Time Service 40 years
Pensionable Pay £25,000
£25,000 / 40 x 80 = £12,500 Pension
£12,500 x 3 = £37,500 Lump sum

9. Example 2 – 1995 Section Part Time Service 40 years – 0.5 WTE
(Works half F/T hours, calendar service of
40 years scaled to 20 years membership)
Pensionable Pay £12,500. NWT = £25,000
£25,000 / 20 x 80 = £6,250 Pension
£6,250 x 3 = £18,750 Lump Sum

10. Commutation example 1 You may opt for an additional lump sum.
£1 pension = £12 lump sum
Maximum extra lump sum 5.35 x annual pension, e.g * £12,500 = £66,875
Lump Sum = £37,500 + £29,375 = £66,875
Pension = £12,500 - £2,447 = £10,053

11. Commutation P/T example
You may opt for an additional lump sum. £1 pension = £12 lump sum
Max extra lump sum 5.35 x annual pension e.g * £6,250 = £33,437
Lump Sum = £18,750 + £14,687 =
£33437.
Pension = £6,250 - £1,223 = £5,027

12. Mixed Service Mixed Service - Full and Part Time membership
20 years at Full Time
10 years at Part Time (0.5 WTE)
25 years in Total

13. Remember In reality every hour worked is calculated.
Full time member works:-
37.50 x weeks = 1955 hours
1955 hours = 365 days membership
Part time member works:-
30 x weeks = 1564 hours
1564 hours = 292 days membership

14. 2008 Scheme – Members from April 2008 or if you have transferred in with NHS Pension Choice
1/60 Scheme – No auto lump sum
- Commute part of pension (1:12)
Final Salary – Average of best 3 years in last 10 years (+ Cost of Living)
Normal Pension Age = 65
Draw down pension 2 times + continue paying pension contributions and working

15. Re-Employment
You must take one month’s break in employment. The break is defined as follows:
A full calendar month off work unpaid, or
A 24 hour break in employment unpaid, followed by one calendar month working no more than 16 hours per week
Reduction of Pension (Abatement)
This only applies for special classes until you reach age 60.
Pension + New Pay should not be greater than Pensionable Pay on retiring.

16. VER
1995 section
From Age 50 *
* From April new staff minimum age 55
Service only as at retirement date
2008 section & 2015 scheme
from Age 55

17. VER Pension

18. VER – Lump Sum

19. VER – Pension

20. ILL Health Tier 1 – Unable to do your job
Unreduced pension based on service accrued at termination.
Tier 2 – Unable to work at all service +
enhanced pension = two thirds of pension to prospective normal retirement age.

21. Compulsory Redundancy
Must be at minimum pension age, 50 or 55
3 choices:
Unreduced Pension, with costs met by the member and balance of redundancy
Reduced pension on VER and full redundancy
Redundancy only

22. When you Retire Pension agency require a minimum of 4 months notice.
Resign and agree you final day with your manager – including A/L
Claim your pension and complete form AW8

23. Your Pension Lump Sum is normally paid the day after you retire.
Your Pension is paid monthly in arrears.
(i.e. Pension is credited using your date of birth i.e. If born on 15th that will be your payday)

24. Recent Changes Accrued benefits are safe CPI instead of RPI
Career average scheme from /54th
Change in Retirement Age (SPA)
10yr protection from 01/04/2012
Limited protection for those 13.5 years from retirement

25. Useful Contacts Anne Wardman Level 4 New Mill 01274 251000
NHS Pension Agency Fleetwood
Paymaster Crawley
Inland Revenue Cardiff