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HSC Pension Service 1995/2015 Scheme Workshop.

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Presentation on theme: "HSC Pension Service 1995/2015 Scheme Workshop."— Presentation transcript:

1 HSC Pension Service 1995/2015 Scheme Workshop

2 Introductions John Coyle HSC Pension Service Pension Liaison Team
Provide guidance to employers on Pension Regulations and Legislation Providing workshops & presentations to scheme members updating you on the features and benefits of the scheme.

3 Purpose of Today’s Event
As a result of pension reform the HSC Pension Scheme changed with the introduction of the 2015 CARE Pension Scheme Most members have or will move to the 2015 Pension Scheme Today’s event is to provide you with information on what effects this will have on you as a scheme member We shall discuss options available to you to increase your benefits, options of when you can retire and claim your benefits and what choices you can make when approaching retirement.

4 Topics for Discussion Brief overview of the schemes Membership
Pensionable Service Pensionable Pay Protection of Pensionable Pay Additional Pension Purchase/ERRBO

5 Topics for Discussion cont.
When can I retire VER Pension De-Coupling of Added Years Normal Age Retirement Application Process Ill Health Pension Death & Survivors Benefits

6 The 1995 Section of the Scheme
The 1995 section of the HSC Pension Scheme is a Defined Benefit Final Salary pension scheme which pays benefits using a defined formula based on member service and pensionable pay A pension is calculated at a rate of 1/80th of your reckonable pension service multiplied by your final years pensionable pay at retirement. A Lump Sum is payable equal to 3 times the value of your 1995 section pension with the option to exchange part of your pension for a higher lump sum. Normal Retirement Age (NRA) is 60 (age 55 for special class members) in the 1995 section

7 The 2015 HSC Pension Scheme The 2015 scheme is a Defined Benefit Career Average Revalued Earnings (CARE) pension scheme which pays benefits using a defined formula based on annual pension accrued over the lifetime of scheme membership A pension is calculated on 1/54th of your annual pensionable earnings. This figure is revalued each year up to your retirement There is no automatic lump sum in the 2015 scheme but there is an option to exchange pension for a lump sum Normal Retirement age in the 2015 scheme is linked to your State Pension Age (SPA)

8 The 2015 HSC Pension Scheme Secretary of State for Work and Pensions proposed an increase in the State Pension Age (SPA) from age 67 to age 68. This will effect members born between 06th April 1970 and 05th April 1978 (Approx. 13,500 members) Potential Impact to 2015 members: 1. Retirement age for 2015 scheme benefits will increase to age 68 2. If you have purchased an ERRBO it will change the date you can retire without any reductions applied 3. If you have purchased additional pension it will change the date the Additional pension is payable from.

9 The 1995/2015 Schemes Contribution rates vary from 5% to 14.5% of your pensionable pay Benefits from both schemes will be calculated separately and added together to calculate your final overall pension Both schemes provide survivors pension benefits which are payable to spouse, partner, dependent children You can claim your 1995 scheme benefits before and separate to your 2015 scheme benefits but you must retire from HSC employment If you retire and claim your 1995 benefits and return to employment in the HSC you cannot re-join the 2015 Scheme. Your 2015 scheme benefits can be claimed from age 55 but a reduction factor will be applied.

10 Membership of the 1995 Scheme
The 1995 scheme closed on 01/04/2015 unless you qualify through the protection arrangements For full protection you had to be within 10 years of your Normal Retirement Age (NRA) at 01/04/2012. This means you had to be aged 50 at 01/04/2012 (or age 45 if you were a member of the special classes) Tapered protection is in place for those members greater than 10 but less than 13 years 5 months from their NRA Those members born between 02/04/1962 and 31/08/65 ( 02/04/1967 and 31/08/1970 for Special Class Members) move to the new scheme at a date after 01/04/2015 – See calculator on scheme website

11 Membership of the 2015 Scheme
Membership of the 2015 Scheme is open to HSC employees aged over 16 and under 75 Certain restrictions apply such as: Member cannot join: If they are in receipt of 1995 scheme benefits (except tier 1 ill health retirement and the member is under 50) Member has full protection for future accrual in the 1995 scheme Member has full protection for future accrual in the 2008 scheme There is no restriction on the number of years service which can be accrued.

12 How your Pensionable Service is calculated in the 1995 Scheme
Your 1995 scheme pension benefits are calculated using a formula based on the pensionable service you accrue up to your last day of 1995 scheme membership and your final years pensionable pay. Your service is counted in the number of years and days you have actually paid contributions to the scheme If you worked part time your service will be calculated proportionately to the hours you have worked For example if you worked 3 days per week as opposed to 5. For each year you worked you would accrue 219 days (3/5 of a year = 219 days) Over a 20 year period this would mean you had reckonable pensionable service of 12 years as opposed to 20 Reduced paid sickness/maternity are still treated a full pensionable service (subject to part time contracts)

13 Factors which positively affect 1995 Pensionable Service
Added Years was a feature of the 1995 scheme where members who joined the scheme, could opt to pay additional contributions to increase their pensionable service. The additional service is added to that accrued during the members career and used in the final calculation of benefits. Additional Hours – if a part time member works hours over and above their contracted hours up to the whole time equivalent, these will be converted to days and added to the service they have accrued. For example a member who works 3 days per week works an additional day a week for a year that person will be credited with 73 days extra service. Annual Leave, if you are paid for annual leave owing at retirement this is treated as pensionable service and will extend your retirement date

14 Factors which negatively affect 1995 Pensionable Service
The following factors will reduce a members reckonable service: Breaks in Service (periods where the member is not in pensionable employment) This can be as a result of the member opting out of the scheme for a period, the member may have a break between employments etc. Unpaid Leave This can refer to periods of unpaid sick, Authorised unpaid leave, unauthorised absence, Industrial Action Career Breaks If a member was on a career break and opted not to continue paying their scheme contributions they will not be credited with pensionable service for this period

15 How to Calculate 1995 Section Pensionable Service
Pensionable service is calculated over the period the member pays contributions. An ideal pension record could be as follows: Jim joins the Trust and the HSC Pension Scheme on 01/04/1990 and moves to the 2015 Scheme on 01/04/2015 Jim worked full time and has had no breaks in service or no periods of unpaid leave. Jims service is calculated as follows: 01/04/1990 to 31/03/2015 = 25 years Jim’s 1995 scheme benefits will be based on total pensionable service of 25 years

16 How to calculate Pensionable Service
An employee with exactly the same start and leaving dates but working part time and full-time and having breaks in service This shows how varied working patterns can effect pensionable service Dates FT/PT %worked Service 01/04/ /03/2000 FT 100% 10/000 01/04/2002 – 31/03/2006 PT 50% 2/000 01/04/2006 – 31/03/2009 60% 1/292 05/04/2009 – 31/03/2013 2/144 01/09/2013 – 31/03/2015 80% 1/097 Total Service 17/168

17 Pensionable Pay Tiered Contribution Rates
WTE Pensionable Pay Contribution Rate Up to £15,431.99 5.0% £15, to £21,477.99 5.6% £21, to £26,823.99 7.1% £26, to £47,845.99 9.3% £47, to £70,630.99 12.5% £70, to £111,376.99 13.5% £111, and over 14.5%

18 Pensionable Pay 1995 Scheme
Your final years pensionable pay is actually the best 365 day period in the previous 3 years from your date of leaving. If you are in part time service we use the Whole Time Equivalent (WTE) pensionable pay for your grade. A Part time member’s contribution rate is based on the whole time equivalent salary rate. For example a part time band 5 employee (top of the scale) doing 50% of the standard hours earns £14,090 (£28,180/2). Her contribution rate falls into the 9.3% bracket. She pays 9.3% of £14,090 as this is the contribution tier her WTE salary falls into. When calculating her pension we will use the figure of £28,180 as her final years pensionable pay.

19 Pensionable Pay 1995 Scheme
Salary Sacrifice can affect your pensionable pay figure. Member’s pensionable pay is £30,000, they have a salary sacrifice of £5,000. Their pensionable pay is reduced to £25,000 Your 1995 Scheme benefits will have a final salary link and are calculated using your final years pensionable pay at retirement not when you moved from the 1995 scheme to the 2015 scheme Salary sacrifice will only affect a member of the 1995 scheme if it is applicable in their final 3 years of employment but will affect a 2015 scheme member throughout their period of membership in the scheme

20 Concurrent Service Concurrent Pensionable Service can be built up by a member who is in pensionable employment in 2 or more HSC posts. A member working in 2 or more concurrent part time pensionable posts can build up scheme membership equivalent to that if they were in 1 full time post. Service over and above the Whole Time Equivalent is disregarded for the calculation of benefits. Pensionable pay received in each post is taken into consideration when calculating a members final years pensionable pay for 1995 scheme benefits, reckonable pay for 2008 scheme benefits and annual pensionable pay for 2015 scheme benefits

21 Concurrent Service (calc.)
Member works hours per week as a band 5 and hours per week as a band 7 up until retirement. The member is top of the scale in both posts. This member will build 1 years pensionable service annually. In order to calculate their final years pensionable pay we must take into consideration pay in both posts. Band 5 Rate of pay = £28,180 (WTE) Band 7 Rate of pay = £40,963 (WTE) Actual Pensionable pay figure to be used in calculation of 1995 scheme benefits = (£28,180 + £40,963) / 2 = £34,571.50

22 Protection of Pensionable Pay
Two types of protection - protection through no fault of the member & Voluntary Protection Protection of pay for 1995 scheme benefits is applicable up to the date you retire from HSC employment Through no fault of the member – Acceptable Reasons A change in the nature of the duties performed, for example due to ill health A move to a lower paid post because of pending or actual redundancy. Being transferred to other employment with an employer. Downgrading of Pay through AFC/RPA Request should be made within 3 months of reduction to pay

23 Protection of Pensionable Pay
Voluntary Protection of Pay Member must have attained minimum pension age (MPA) -50/55 Member steps down to a less demanding role Pay must reduce by at least 10% Request must be made after 12 months but within 15 months of member going on reduced pay Members should apply using forms PROPAY1 Employer should complete PROPAY2 If protection of pay is applicable HSC pension service will calculate your benefits accrued to the date of reduction at the higher rate of pay, and from the date of reduction at the lower pay.

24 Protection of Pay Calculation
Jane has 20 years service. Her pay is protected at £30,000. Jane’s protection ends and her pay drops to £24,000. Jane applied for protection of pensionable pay. At retirement Jane's pensionable pay has risen to £25,000 At Retirement Jane's pension will be calculated as follows: 20 years / 80 x £30,000 = £7,500 pension £7,500 x 3 = £22,500 Lump Sum Using the calculator

25 Protection of Pay Calculation
If Jane had not opted to protect her pensionable pay her benefits would be calculated as follows: 20 years / 80 x £25,000 = £6,250 pension £6,250 x 3 = £18,750 Lump Sum The total difference in benefits if protection is not used is Pension = £1,250 per annum Lump Sum = £3,750

26 Additional Pension Purchase
Members may increase their retirement package by opting to purchase additional pension benefits in blocks of £250 up to a maximum of £6,500 You can make requests for the cost of purchasing additional pension by submitting Form AP1 to HSC Pension Service HSC Pension Service will calculate and advise you of the costs (lump sum or instalments) If you opt to pay by instalments HSC Pension Service will liaise with Payroll Shared Service to set up deductions from your salary If you opt to pay by lump sum you should forward a cheque to HSC Pension Service Example cost of additional pension of £2,000 per annum for Female age 45 = £208 per month for 10 years or £19,520 lump sum

27 Early Retirement Reduction Buy Out (ERRBO)
ERRBO is a feature of the 2015 scheme which allows a member to pay additional contributions to buy out any potential actuarial reduction if retiring before NRA Maximum buy-out = 3 years of actuarial reduction Member with NRA of 68 retiring at 65 will have no reduction applied If you are interested in purchasing an ERRBO you should read the factsheet and complete the expression of interest form available on the scheme website Use the calculator on the website to work the percentage cost for you.

28 Early Retirement Reduction Buy Out (ERRBO)
Example Cost for Scheme Member age 45 with a Normal Retirement Age of 67 1 Year ERRBO to reduce their NRA in the 2015 Scheme to Age 66 1.29% of their Gross Pensionable Pay 2 Year ERRBO to reduce their NRA in the 2015 Scheme to Age 65 2.58% of their Gross Pensionable Pay ERRBO can only be taken to a minimum age of 65 See Calculators on the Scheme Website

29 Estimates of Benefits/Calculators
Due to the nature of the 2015 CARE Scheme, HSC Pension Service will not be able to forecast what your benefits will be on retirement. You can visit the Calculators section of the Scheme website which has links to both a 1995 scheme calculator and a 2015 scheme calculator with predetermined factors which can show you in principle how your pension benefits could grow. THESE FIGURES ARE FOR ILLUSTRATIVE PURPOSES ONLY

30 When Can I Retire? 1995 Section Benefits
The earliest retirement age in the 1995 Section of the scheme is Age 50 (if you have service prior 06/04/2006) otherwise age 55. If you retire and claim your benefits before your NRA of 60 then they will be reduced The reduction factor which will be applied to your pension and lump sum is dependant on the number of years & months to your NRA. The reason the reduction factor is applied is because your benefits will be in payment longer than if you were to retire at your NRA

31 When Can I Retire? 2015 Section Benefits
In the 2015 scheme your Normal Retirement (NRA) age is linked to your State Pension Age (SPA) You can check your SPA by visiting the Government Website at The earliest retirement age in the 2015 Section of the scheme is Age 55. If you retire and claim your benefits before your State Pension Age then they will be reduced The reduction factor which will be applied to your pension is dependant on the number of years & months to your NPA. . The reduction factor is applied as your benefits will be in payment longer than if you were to retire at your NPA

32 Reduction Factors 1995 Section
Pension Reduction Factors Age 50 51 52 53 54 55 56 57 58 59 Factor 0.639 0.665 0.692 0.722 0.754 0.790 0.827 0.867 0.909 0.954 Lump Sum Reduction Factors Age 50 51 52 53 54 55 56 57 58 59 Factor 0.734 0.757 0.780 0.805 0.830 0.856 0.883 0.911 0.940 0.970

33 Reduction Factors 2015 Section
Pension Reduction Factors Years to Retirement 1 2 3 4 5 6 Factor 0.946 0.896 0.849 0.807 0.767 0.730 Years to Retirement 7 8 9 10 11 12 Factor 0.695 0.663 0.633 0.605 0.578 0.554

34 How does VER Affect my Benefits?
Example VER Calculation Cathy retires at age 56 from the 1995 section of the HSC Pension Scheme and has accrued the following benefits: Pension = £8,000 per annum & Lump Sum = £24,000 As Cathy is retiring early her 1995 scheme benefits are reduced as follows: Pension £8,000 x = £6,616 per annum Lump Sum £24,000 x = £21,192 Survivors benefits are not affected by these reductions

35 How does VER Affect my Benefits?
Cathy has the option to leave her 2015 scheme benefits until she reaches SPA (assumed to be age 67) or claim them at age 56 or at any date in the future. If we assume Cathy has accrued a pension worth £5,000 in the 2015 scheme by age 56 and wishes to claim it the value of the early payment of the pension is as follows: Pension £5,000 x = £2,890 (no automatic lump sum) Cathy’s total VER pension benefits at age 56 are: Total Pension = £9,506 (£6,616 + £2,890) Lump Sum = £21,192

36 Other Scheme Benefits Payable
Partial Retirement (2015 benefits) De Coupling of Added Years Normal Age Retirement Ill Health Retirement Death in Service / Survivors Benefits

37 Partial Retirement/Drawdown
Partial retirement is a feature of the 2015 scheme where an active member claims a portion of accrued benefits whilst still continuing in pensionable employment Member must have reached their MPA (Age 55) Member’s Terms and Conditions must change and Pensionable Pay must be reduced to at least 90% of pensionable pay received in previous 12 months. Pensionable Pay must remain reduced for a period not less than 12 months

38 Partial Retirement/Drawdown
If a members pay rises above the reduced amount in the 12 months following the beginning of partial retirement the pension in payment will be abated to zero. Member must take at least 20% of their pension benefits and not more than 80% (pension will be reduced as paid before NRA) Member can continue to accrue pension in the remaining proportion of benefits in the scheme Member can only invoke this option twice

39 Partial Retirement Calculation
Member has built up pension benefits £12,000 in the 2015 scheme and wishes to claim 25% of their pension benefits accrued at age 60. Member opts to partially retire by reducing their contract from 5 days to 4 days. Their pay reduces from £30k to £24k 25% of the members total pension is £3,000 per annum which is reduced to £2,085 (reduction factor of 0.695) as it is taken early Member has the option to convert part of the £2,085 pension for a lump sum (use the on-line calculator)

40 Reduction Factors 2015 Section
Pension Reduction Factors Years to Retirement 1 2 3 4 5 6 Factor 0.946 0.896 0.849 0.807 0.767 0.730 Years to Retirement 7 8 9 10 11 12 Factor 0.695 0.663 0.633 0.605 0.578 0.554

41 Partial Retirement Calculation
Member continues to build upon the remaining £9,000 which grows to £11,000 at age 64 Member opts again to partially retire by reducing their contract from 4 days to 2 days and claim another 30% of their pension. Their pay reduces from £24k to £12k 30% of the members remaining pension in the 2015 scheme is £3,300 per annum which is reduced to £2,800 (reduction factor of 0.849) Member has the option to convert part of the £2,800 pension for a lump sum (using the on-line calculator)

42 Partial Retirement Calculation
Member continues to build upon the remaining £7,700 which grows to retirement Assuming the member did not convert part of their 2015 pension for lump sum their income for 2 days working plus partial retirement would be approx. £12,000 + £2,085 + £2,800 = £16,885 The member will be eligible for the remaining 45% of their 2015 scheme benefits at retirement plus their 1995 scheme benefits. Member also has the option to convert part of their remaining 2015 scheme benefits for a higher lump sum at retirement.

43 De-coupling of added years
Added years was a facility in the 1995 section of the scheme which allowed members to increase their pension benefits at retirement by paying additional contributions to purchase extra service An added years contract was normally taken out to age 60 or age 65. If you have a current added years contract in the 1995 scheme, you can claim these benefits at the contract end date and continue building up membership in the 2015 scheme

44 Age/Normal Retirement
The Normal Retirement Age (NRA) for members of the 1995 section of the scheme is 60 (age 55 for special classes) The Normal Retirement Age (NRA) for members of the 2015 scheme is linked to your State Pension Age (SPA), You can find out your SPA by visiting the website As you have benefits in both the 1995 & 2015 schemes you will technically have 2 NRA’s We will do a calculation on the benefits you have accrued in both schemes and add them together to get your overall pension

45 Age (Normal) Retirement
When you reach Normal Retirement Age (NRA), Age 60 in the 1995 section (or 55 if you hold Special Class Status) and SPA in the 2015 scheme you can apply for your Pension Benefits. Your benefits are calculated on the service you have accrued and your best pensionable pay of the last 3 years of scheme membership. The following formulae are used in the calculation: Service/80 x Pensionable Pay = pension Pension x 3 = Lump Sum You have the option to convert part of your pension to take an additional lump sum at a rate of £12 lump sum for every £1 of pension given up. You cannot convert all of your pension for a one off lump sum.

46 Age (Normal) Retirement
Your 1995 scheme benefits will be calculated using your final salary at retirement. This is known as final salary link. You will receive a pension and a lump sum from this pension service. Your 2015 Scheme Benefits will be calculated using the Career Average Revalued Earnings (CARE) formula. There is no automatic lump sum in the 2015 scheme so therefore you will receive a pension for this service You may opt to give up a proportion of your pension for a higher lump sum in both schemes

47 Age (Normal) Retirement cont.
Karen has accrued 24 years service in the 1995 section of the scheme when she moved to the 2015 scheme at 01/04/2015 Service of 24 years and a pensionable pay figure on retirement of £22,000 Pension = £6,600 Lump Sum = £19,800 Maximum Lump Sum option Pension = £5,304 Lump Sum = £35,352

48 Age (Normal) Retirement cont.
If we assume the following we can use the 2015 scheme calculator to forecast the value of Karen’s pension in the 2015 scheme: Karen joined the 2015 scheme at age 46 Karen has NRA of 67 Karen’s pensionable pay on joining is £20,500

49 Age (Normal) Retirement cont
In the 2015 Scheme Karen has accrued benefits of Pension = £10,882 Karen's total benefits are as follows Pension = £10,882 + £6,600 = £17,482 Lump Sum = £19,800 (with the option to increase)

50 Pension Application Process
If you are thinking of retiring through Normal Age Retirement or VER you should meet with your Manager as soon as possible. (usually 4 months in advance of your proposed date) You may wish to visit the scheme website and use the calculator to estimate the value of your benefits When completing the AW6 you should pay particular attention to Part 6, the section which asks if you wish to take an additional lump sum. At this point you should make a decision based on you own circumstances. (refer to the calculator on the website) HSC Pension Service will not advise you which option to choose, you may wish to speak to a financial advisor Please submit you birth certificate with the application form to speed up the process

51 Returning to Work in the HSC
Special Class Nurses & Mental Health Officers who retire between the ages of 55 and 60 who wish to return to employment in the HSC Members must retire from their job and must take at least a 24hr break from employment Member is not permitted to work more than 16 hours per week in their first month of re-employment Members salary on re-employment + their 1995 scheme pension cannot exceed what they earned prior to retirement. e.g Member retires on a salary of £30,000 Their pension is £10,000. They are therefore permitted to earn £20,000 per year on re-employment. Normal Members must adhere to points but there is no limit on their earnings

52 Ill Health Retirement There are two types of Ill Health Retirement
Tier 1 - where the member is found to be permanently incapable of efficiently discharging the duties of their employment Tier 2 - where the member is found to be permanently incapable of any regular employment If a member feels they meet the criteria for Ill Health Retirement and cannot continue in their employment, they can apply to have their pension benefits paid early. Your HR & OHS teams will assist you in this process If found to be medically unfit your benefits will be paid before NRA without any reductions applied.

53 Ill Health Retirement (Cont.)
Tier 1 benefits are based on the service you have accrued to date. For example Jane has accrued 26 years membership in the 1995 section of the scheme when she applied for and was accepted for Tier 1 Ill Health Retirement. Jane's benefits will be calculated using this amount of pensionable service and her best pensionable pay of her last 3 years If we assume Jane's best pensionable pay figure is £28,000 we can use the calculator on the scheme website to work out Jane’s benefits Pension = £9,100 Lump Sum = £27,300

54 Ill Health Retirement (Cont.)
We then calculate the value of benefits accrued in the 2015 scheme Assuming Jane has a initial pensionable pay figure of £27,000 increasing each year by 0.5% Jane has accrued 5 years service in the 2015 scheme The revaluation rate of Jane’s benefits is 2% (0.5% CPI+1.5%) per annum

55 Ill Health Retirement (Cont.)
Year Earnings Pension Year 1 Year 2 Year 3 Year 4 Year 5 1 £27,000 £500.00 £510.00 £520.00 £531.00 £541.00 2 £27,135 £503.00 £513.00 £523.00 £533.00 3 £27,270 £505.00 £515.00 £525.00 4 £27,407 £507.00 £518.00 5 £27,544 Total Pension Accrued after 5 Years £2,627.00

56 Ill Health Retirement (Cont.)
Jane's total benefits for Tier 1 Ill Health Retirement will be as follows: 1995 Pension Benefits Pension = £9,100 Lump Sum = £27,300 2015 Pension Benefits Pension = £2,627 Total Benefits Payable Pension = £11,727 Lump Sum = £27,300

57 Ill Health Retirement (Cont.)
Tier 2 benefits are based on the service you have accrued to date plus a possible enhancement of service up to your normal retirement age (SPA in the 2015 scheme). The amount of enhancement varies depending on your age, you will receive 50% of your prospective service to your SPA The calculation for Tier 2 Ill Health Retirement Pension is based on a formula which uses the value of your pension benefits accrued to date, the service accrued to date and 50% of your prospective pensionable service We calculate the value of these benefits and add them to the benefits accrued under a Tier 1 pension

58 Ill Health Retirement (Cont.)
If a member has a terminal illness and is awarded Tier 2 Ill Health Retirement and is found to have a life expectancy of less than one year they will have the option to commute their benefits to a one off lump sum. This is calculated using the Tier 2 formula, giving the member the maximum lump sum payable by commuting a proportion of their pension at a rate of £12 lump sum for every £1 pension exchanged up to HMRC maximum limit. The remaining pension is then multiplied by 5 and converted to a one off lump sum payment.

59 Death Benefits If a member dies in service a death gratuity is payable equal to twice the members actual annual pensionable pay. This benefit is paid to the member’s spouse unless otherwise requested. If John is a full time employee with an actual annual pensionable pay figure of £22,000 and dies in service then the death gratuity payable is £44,000 If a part time member working 80% of their normal hours is on the same pensionable pay scale as John but their actual pensionable pay figure is £17,600. Their death gratuity will be £35,200 (2 x £17,600) An adult survivors pension is payable to a spouse, civil partner or a co-habiting partner at a rate of 50% of pension for 1995 scheme membership and 33.75%. of your notional tier 2 ill health pension for 2015 scheme membership

60 Death Benefits cont. If there are any dependent children a surviving children's pension is also payable. The rate of Childs pension will be determined by the number of dependent children A dependent child is deemed to be aged under 23 (or aged 23 or over and incapable of earning a living due to permanent physical or mental infirmity which he/she was suffering at the time the member died).

61 Death Benefit Nomination Forms
A member can nominate anyone to receive the death gratuity in the event of their passing. This is done by completing the form DG3 available from the scheme forms section of the website and submitting it to HSC Pension Service Form PN1 can be used if you wish to nominate your partner to receive a survivors pension in the event of your death. Certain criteria must be met such as: you and your partner have been living together in an exclusive long-term relationship for at least 2 years; you and your partner are free to marry or to enter a civil partnership you and your partner are financially interdependent i.e. you rely on your joint finances to support your standard of living, although you do not need to be contributing equally

62 Contact Details HSC Pension Service Waterside House 75 Duke St Derry BT47 6FP Website Tel


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