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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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Presentation Transcript
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
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