NHS pension please help

[Twoshoesnewshoes]

I’m trying to find info on making overpayments/additional pension contributions to my NHS pension.
i cannot find how much the NHS contribution is for additional pension contributions anywhere!
anybody know?
thanks ☺️

You can't overpay. It's set. I think you can buy back extra years but as they don't have the matched employer contributions they make v little difference to the pension overall sadly. I attended an online webinar with a company called affinity connect recently offered by my Trust. There have been changes to the pension due to the McCloud ruling which may apply depending on your age and when you entered the scheme. Does your trust offer access to these sessions? It was really helpful in explaining how it all works.

Thanks @SquirrelyWirrally - the online calculator says I can overpay up to £8500? It’s not very clear though.

You can make additional contributions. I just looked up the Scottish pension by googling SPPA and AVCs and came up with options including one for near the amount you mentioned. Not sure how it works as I am in receipt of my pension now. You could also pay into a private pension.

Thank you, I thought that was the case. What I can’t find it the employer contribution- presumably it’s less for the additional contribution?

Yes, sorry. I think you can buy extra contributions but you can't increase your set % based on salary. Also you don't get the employer contributions for additional payments. Additional payments aren't counted in the lump sum payment calculation. I think you can only add to the 2015 scheme now as the others are closed.

Whilst you can’t change your set contributions, you can pay AVC’s (Additional Voluntary Contributions). However, as these are voluntary contributions, your employer does not contribute to these - only your set % contributions.

I had a wee look recently. I think you can either make additional voluntary contributions or get a quote to reduce your retirement age. This is Scotland whichay be different to England.

No employer contributions are made.

NHS Pensions members Facebook page is very helpful. I pay AVCs but only get tax advantage on these not employer contributions. There is a way of buying pension so you can take it early, called something like EMBRO ( don't know much about it as felt AVCs were more flexible for me.) The Facebook page is very informative

Ah okay, that’s really helpful, thanks.
i think I’ll open a SIPP then rather than make additional payments.

If you are on Facebook @Twoshoesnewshoes , look up Pengage.

It's an excellent company that supports people with public sector pensions. The manager Laura Bowler gives out lots of free advice (like your question) but she also runs free pension webinars for NHS staff or Teachers pensions etc. She would be able to advise you on the best way to make extra contributions.

The calculator will tell you how much you will need to pay for a set amount of additional pension. You have the option of how you want to spread it. AVCs are not giving you guaranteed benefits but flexibility on how to use that fund.

Hi Twoshoesnewshoes,
I work for the NHS and have recently taken out an AVC pension at the age of 50. I have not had financial advice but spoke to my Trust's pension person (they can't give advice, just information) and my sister who is a Financial Director of the smallish company she works for. She is very savvy on these things and gave me a lot of advice. Obviously I don't know your circumstances but for me it is definitely beneficial to get this AVC pension rather than a SIPP or ISA because even though the NHS don't contribute anything, your contributions to the pension are taken before you are taxed and NI is taken so you save extra money this way, eg you get £250 taken from your salary pre-tax and your take home pay is only reduced by £200 (just a made up example to aid understanding - this is NOT an actual figure!)
You will definitely be better off doing an NHS AVC pension over a SIPP.
I am doing this late in life as I was very late in starting any pension at all and I can't take my NHS pension until I am 67 unless I take a significant reduction in payments. I can take from my AVC pension at the age of 57. It won't be a massive amount but every little helps.

I hope this helps - I am NOT a financial advisor so I suggest you get some further advice, but do have a look at the NHS AVC pension options and speak to your pension people at work as this gave me an idea of what not to do as well as looking into the AVC options.
https://www.nhsbsa.nhs.uk/member-hub/increasing-your-pension/money-purchase-additional-voluntary-contributions-mpavc

You receive the same tax relief in a SIPP as well,i.e. you pay in £200, the scheme receives £50 tax relief. Whether you pay NIC or not depends whether your company makes contributions via salary sacrifice or not.