On 1st April 2015 a brand new scheme for England and Wales was launched. This is a new scheme and not another ‘section’ of the previous NHS scheme such as the ‘1995 section’ and ‘2008 section’. This Scheme has different approach to how your pension is calculated and when you can claim it.
So what are the main changes:
|1995 Section||2008 Section||The New 2015 Scheme|
|The Means of Calculation – has changed!||Final Salary – Best 12 months in last 3 years||Final Salary – Best 3yr avg in last 10 years||Career Averaged Re-Valued Earnings|
|Normal Pension Age – has changed||60 (55)||65||Linked To State Pension Age|
|Pension Accrual Rate – has changed||80ths||60ths||54ths|
|Death In Service *||2 x final yearsmembership||2 x reckonablepay||2 x reckonable earnings with last 10 years|
|Additional Pension (AP’s) – has a new element to it||Added Years – closed 31/3/09 APP, AVC’s||AP, |
* There are other factors to consider for DIS along with widows and dependants benefits, depending upon your status at the date of death. Please ask us for more details on this.
To see how this scheme will affect you please contact one of our advisors at PSS and we will be happy to talk to you through the implications
APP – Additional Pension Purchase
AVC’s – Additional Voluntary Contributions
ERRBO – Early Retirement Reduction Buy Out
DIS – Death in Service