Understanding NHS Pension Scheme Choice Exercise - Secure Your Retirement

1. NHS Pension Scheme Choice Exercise NAME, GMB LOCATION DATE

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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?

10. 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

11. Questions?