Nhs pension scheme choice exercise
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NHS Pension Scheme Choice Exercise. NAME, GMB LOCATION DATE. Why Have a NHS Pension?. Expectation to retire from work. Hope to have a source of income to maintain standard of living Life expectancies are increasing State benefits alone will barely cover necessities

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NHS Pension Scheme Choice Exercise

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Nhs pension scheme choice exercise

NHS Pension Scheme Choice Exercise

NAME, GMB

LOCATION

DATE


Why have a nhs pension

Why Have a NHS Pension?

  • Expectation to retire from work.

    • Hope to have a source of income to maintain standard of living

    • Life expectancies are increasing

  • State benefits alone will barely cover necessities

  • NHS Pensions benefit from tax breaks.

  • Your employer pays towards your pension.


  • Nhs pension scheme

    NHS Pension Scheme

    • NHSPS has two sections

    • 1995 section (with a retirement age of 60) available to all who were employed before 1 April 2008

    • 2008 section (with a retirement age of 65) for new joiners or those returning after 5 years+

    • Both are final salary sections with different levels of benefit, but the same level of contributions payable

    • Scheme reviewed recently but under attack – opposition parties & media


    The pensions choice

    The Pensions Choice

    • Members have a one-off option to move all 1995 section pensionable service into 2008 section

    • All pension would be treated as if built up in 2008 section

    • For under 60’s (as at 1/10/2009) service would be converted on a year for year basis

    • For 60+ members, service would be reduced on transfer


    Nhsps what you pay

    NHSPS – What you pay

    • Members pay same levels of contributions to both 1995 and 2008 sections

    • Your contribution rate is based on how much earned in the last year

    • Contributions are paid on your actual pensionable earnings


    1995 section benefits

    1995 Section – Benefits

    • Normal Retirement Age of 60

    • Pension of 1/80th of final pay for each year of service

    • Automatic tax free lump sum of 3 times the pension (with the facility to give up a part of the pension for a higher lump sum)

    • Other features


    2008 section benefits

    2008 Section – Benefits

    • Normal Retirement Age of 65

    • Pension of 1/60th of final pay for each year of service

    • No automatic tax free lump sum (can give up a part of the pension for a lump sum)

    • Other features


    Delivery of the choice exercise

    Delivery of the Choice Exercise

    • NHSPD delivering Choice Packs to employers

    • Choice packs to include:

      • Statement

      • Choice Guide

      • DVD

      • Form

  • Packs to be sent directly to members by employers

  • NHSPD are reliant on data sent by employer – very important to check

  • Intended to send these out from January 2010

  • 4 months to make decision


  • Choice what you should think about

    Choice - What You Should Think About

    • Nobody (including GMB) can tell you what Choice you should make

    • Individuals should consider:

      • retirement age

      • additional flexibilities available in 2008 Section

    • Is the Data on the Statement correct? – you should query anything that looks wrong

    • Do the projections provided tie in with your retirement plans?


    Resources

    Resources

    • NHS Pensions Division

      • www.nhsbsa.nhs.uk/Choice

      • 0300 123 1601

  • State Pension – The Pensions Service

    • www.thepensionservice.gov.uk

    • 0845 6060265

  • GMB – Pensions Website

    • www.gmb.org.uk/pensions

    • Queries via rep/Regional Officer

  • Independent Financial Advice


  • Questions

    Questions?


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