I Am Going Part Time

The Case

Colin is 58 and is a Senior Manager in Emergency Services in the South of England.  His current job details are as follows:

Job Type – Permanent

Staff Group – Administrative & Clerical

Pay Scheme – Agenda for Change

Pay Band – 8c (£61,777)

However, he has now successfully been granted the permission to reduce his working hours by 50% due to family issues.

He is concerned about how this reduction in income will affect his pension benefits.  He is currently in the ‘1995 section’ of the scheme. He has 38 years service with the NHS.

The Issues

  • On what salary amount will his pension be based upon?
  • Does step down cover apply?
  • Will he be affected by the Hutton Report?

The Options

Even though Colin’s take home pay will be reduced, his pension will always be based upon the Whole Time Equivalent (WTE) pay.  In effect, what happens is that he will only accrue half service but his pension will be based on the WTE pay.

If someone in the ‘1995 section’ retires from the NHS, their benefits are based upon the best 12 months in the last 3 years.  As this is based upon his WTE, he does not need to take benefits within three years of going part time and step down does not apply.

As he was within 10 years of his standard retirement age on 1st April 2012, he will not be affected by the Hutton Report.

It would be useful for Colin to contact us to project his pension benefits and consider when and how he draws them.

For further information please refer to the following section:

What Is The NHS Pension