Should I collect my NHS pension now? 1995 section, aged 60.

[Fordian]

I'm still working, but is there any point in NOT collecting the pension I'm entitled to from the 1995 section as its 'normal retirement age' is 60, and I'm now 60? I've been NHS since 2004.

I mean, being a defined benefit scheme that money (in that section) won't grow, will it? So I may as well collect it?

There is a great group on FB who are really knowledgable. It's called NHS Pensions Chat: Member-led Group. Would definitely recommend a visit there.

Ive just rang the pensions helpline. Absolutely useless so I will try my work HR.

@EachandEveryone try your pensions officer in payroll - for me they were the most helpful person.

Yes....these are the most knowledge able people

Well, I emailed my pensions person saying I was staying in work, but how do I go about claiming my pension; and she said I have to give 4 months notice (it's 8 weeks); and they have to receive my termination papers from my manager before they can act.

But I'm not resigning!

So not the most helpful response.

My understanding is you have to retire to take your pension…..my friend is doing this now….she’s just handed her papers in and had them signed….it’s a four month process….she then returns on a new contract….I don’t think you can take your pension but keep your job…..that sounds wrong to me

Abatement doesn't apply if you are at normal pension age (60 for the 1995 section).

At the moment if you want to keep working you have to do it through retire-and-return, you can't just carry on in your current contract. The details of retire-and-return are set by your individual trust - they may allow you to come back on the same terms, or may want reduced hours or banding. But it's almost always a short term contract rather than a permanent one. This could all change under the current review, so it might be worth waiting until we know the outcome of that.

McCloud is separate - you will definitely get the option of transferring years between 1995 and 2015. But maybe not for a while - they're still sorting the paperwork.

If you don't take your pension at 60 you might be able to claim back pay when you do eventually claim it. But this doesn't apply in all circumstances, so do check - if it doesn't apply to you then any pension not claimed is lost.

To the PP asking about special class status returement at 55 and about ill health retirement, to get either of these you must still be working for the NHS when you claim. If you leave the NHS before 55 or before claiming your pension you lose these options.

And I second the recommendation to join the Facebook group.

I met a friend today who went back two days a week in the same job. She said they are getting stricter at work and making everyone who wants to go back interview for their job and sign yearly contracts only. I never realised.

Unfortunately though my team would be in serious trouble if Ieft it, my B8C manager is an absolute moron thus I wouldn't put anything past her.

@beeswain, that’s correct but I think the McCloud remedy period actually extends to 31 March 2022 so for some of us, seven years of our existing 2015 scheme could move back to the 1995 and then we choose on retirement which option we want.

Have PM'ed you, thanks!

I wrote this to our Pensions officer about if I should have acted 4 months before turning 60, among other questions:

•	Am I right in saying I should have done something about this 4 months before my 60th (Dec 22) as if I ‘resign/retire’ (and return) in 4 months’ time, I will have lost 6 months’ pension payouts?
•	If this is the case, why doesn’t everyone in the 1995 section retire and rehire if otherwise they lose that pension money?? I’m aware that is probably a stupid question but it demonstrates how clueless I, and many others- are about how their pensions work! 
•	As I intend returning, will I be affected by the 1/4/23 (proposed?) changes to the 1995 section staff if I resign/retire now? As in - on 1/4 I will still be in my 4 month notice period- so will I be bound by the current arrangement (I believe this includes a limit of 16 hours a week upon return and being unable to contribute to the 2015 section); or will I benefit from the 1/4 (proposed) rules, with those restrictions gone?            

She responded:

To have your pension paid out on time, you should give 4 months’ notice, as yet we do not have a termination form for you, when are you retiring? You will not lose out as you will still be increasing your 2015 Pension.
Many 1995 members do not retire and return, because at present they cannot re-join the pension scheme. Nobody will lose any pension money.
If you hand in your notice to leave in 4 months’ time, I at present cannot say what is happening the consultation finished on 30/01/2023 and as yet we do not know the outcome.

So there you have it... 🤔

Hi Fordian, Have you managed to get your pension, in the same boat and unsure what to do.

You will not lose out as you will still be increasing your 2015 Pension.

That's misleading, at best. You do lose out on the 1995 payments if you don't claim them as soon as you reach normal pension age.

And now that retire-and-returners can rejoin the 2015, that part will be increasing whether you've taken the 1995 or not.

I read that bit too, and thought Whaaaaaaat...

I retired and returned. You had to retire for a certain amount of time (I think a week?) and could return to the same job - if agreed by your manager. I was off for a month and then went back to the same job but at 4 days instead of 5. My pension more than makes up for the pay lost by reducing my hours. I still have to pay into a pension scheme but I will get that little bit extra when I retire properly when I get my state pension.

I’ve been off sick with cancer and plan to go back next week. If the management play ball and let me work to my full capacity now I plan to ask to partial retire and return on slightly less hours.

I am 57 and can go at 55 so I’m planning to take that and carry on paying into 2017 that is the dream 😀

however two friends have done tv oh s one took the smaller lump sum £55,000 and paid no tax on this and the other took the higher at £90,000 and paid nearly half tax on it!!! Is that true? Because I’m life limited now the aim was to take the bigger amount and have some fun but how can it be worth it?

So if you’re in the 1995 scheme and no longer work for the nhs when is best to take your pension?

55 or 60? Reading the posts here it seems there’s no benefit leaving it longer?

I think you should take it at 55, as it's use it or lose it.

I don't think you even have to retire and return now, but check the new rules. My understanding is that you'll be able to take the 1995 part, and keep contributing to the other part.

I thought the lump sum was tax free - they don’t make it easy for us. I’d get your friend to check this. I assume the pension people know what they are doing when they do the calculations!!! Is there anywhere to check if the figures are right. I’ve worked 27 years but the last 14 have been part time.

Would your employer have you back after your 'retirement'?

Where I work anyone taking their pension is usually put on a one or two year contract then reviewed.

You also loose any long serving benefits.

Have a look on the NHS pensions website lots of good info there. Payroll pensions officer also a good shout. Basically no increase in pension for delaying beyond 60. Rules around retire and return have recently changed to make it easier. Pension is linked to inflation pay certainly is not. If you don’t take the pension at 60 you will be losing money 🤷‍♀️

Sorry, the 1995 scheme has a normal pension age of 60.

There's something about pensions that makes my brain freeze - fear of ageing and death, probably.

I've just put in to claim my 1995 pension as a deferred benefit as I left the NHS about 25 years ago and have not long turned 60. I think I only stand to get about £80 a month or something, but as I'm now a higher rate tax payer I assume I'll have to declare it on self-assessment and pay tax on it. I thought I might as well have whatever was left after tax rather than waiting till I get to retire properly, which won't be till I'm at least 67. Was that the right call, do you think?

I plan to ask to partial retire and return

Partial retirement and retire and return are 2 different things. You'll need to work out which you want to apply for.

the other took the higher at £90,000 and paid nearly half tax on it!!! Is that true?

No. Not if it's the NHS pension lump sum (unless she had another absolutely massive pension somewhere). The whole of the lump sum is always tax free unless it's over quarter of a million pounds. Or unless you take the lump sum and pay it into another pension.

So if you’re in the 1995 scheme and no longer work for the nhs when is best to take your pension?

Different rules apply if you've left the NHS. If you take it before 60 it will be reduced. If you take it after 60 you'll get the unclaimed years between 60 and when you eventually claim as backpay.

Where I work anyone taking their pension is usually put on a one or two year contract then reviewed.You also loose any long serving benefits.

Depends on whether you do retire and return or partial retirement, and on your specific trust rules.

For retire and return you come back on a short term contract, for partial retirement you stay on your existing permanent contract.

For retire and return the NHS specifies a mimumum 24 hour break but a lot of trusts insist on 7 days. A 7 day break counts as a break in service and you lose redundancy rights; a 24 hour break does not. Partial retirement has no break in service and no loss of rights.

For both options you keep your full annual leave entitlement regardless of breaks in contract - this is based on cumulative service, not continuous service.