Retirement Flashcards
What are the benefits NHS staff would get from each of the three pension schemes?
1995:
-Pension - 1/80th of the best of the last three year’s pensionable pay for each year of pensionable membership
-Lump sum - 3x pension
2008:
-Pension - 1/60th of the average of the best three consecutive year’s pensionable pay in the last ten for each year of pensionable membership
-Lump sum - pension can be commuted on a 12:1 basis
2015:
-Pension - 1/54th accrual on a CARE basis
-Revaluation - Inflation (CPI) +1.5%
-Lump sum - pension can be commuted on a 12:1 basis
What are the normal retirement ages for each of the three pension schemes?
1995 - 60
2008 - 65
2015 - SPA
What is the maximum NHS staff can take as a lump sum?
25% of the capital value (20 x pension plus lump sum)
What criteria must be met to claim early retirement?
-Reached NMPA
-Member of the scheme long enough to qualify for benefits
-Ceased all NHS employment
What is the 24 hour rule?
You must retire for at least 24 hours to be able to take all your benefits as ‘fully retired’
What must your pensionable pay reduce by (and how long must it stay reduced) to take partial retirement?
At least 10% for twelve months
How many times can a member take partial retirement?
Two
What is the minimum % of pension you must take to partially retire?
20%
What application form do you need to begin taking benefits from your pension?
-If actively contributing/still in NHS employment: AW8 form
-If deferred member & left NHS employment: AW8P form
-If pension credit member: AW8PC form
What would be the actuarial reduction for a 2015 scheme member who retired 5 or 10 years before NPA?
5 years before - 22.3% (77.7% of pension would be paid)
10 years before - 37.3% (62.7% of pension would be paid)
What would be the actuarial reduction for a 1995 scheme member who retired at age 55?
18.8% for pension (81.2% of pension would be paid)
8.1% for lump sum (91.9% of lump sum would be paid)
