NHS Shared Business Services Welcome to the Pre-Retirement Presentation from the NHS Pension Scheme webinar which will begin shortly Please use your telephone after joining the webinar and call in using the Access Code and Audio PIN supplied webinar sound will not be available through a PC or lap top

Topics Checking your payslip NHS Pension Schemes Pensions Scheme Benefits Applying for retirement benefits Working after retirement Things to consider coming up to retirement More Information Questions

Checking your payslip

NHS Pension Schemes 1995 Section – new members who joined before 31 st March 2008 with an accrual rate of an 80th of your pensionable pay 2008 Section – new members who joined on or after 01 April 2008 and before 31 st March 2015 with an accrual rate of a 60th of your pensionable pay 2015 Scheme – new members who joined on or after 01 April 2015 with an accrual rate of a 54th of your pensionable pay All pensions are index linked 1995 and 2008 Sections are based on Final Pensionable Salary 2015 Scheme is a Career Average Revalued Earnings (CARE)

NHS Pension Schemes Full Protection – you were within 10 years of your Normal Retirement Age at 1 April 2012 and you will remain in the 1995 or 2008 Section of the NHS Pension Scheme

NHS Pension Schemes Tapered Protection – you were within 10 years to 13 years 5 months of your Normal Retirement Age at 1 April 2012 and you will have a specified date when you will move to the 2015 Scheme Your benefits accrued in the 1995 or 2008 Section will be preserved at your specified date under the rules and regulations of these Sections

NHS Pension Schemes No Protection – you were more than 13 years 5 months from your Normal Retirement Age at 1 April 2012 you will move to the 2015 Scheme on 1 April 2015 Your benefits accrued in the 1995 or 2008 Section will be preserved at 31 March 2015 under the rules and regulations of these Sections

Pension Scheme Benefits 1995 and 2008 Sections Whole time Age retirement Part time Normal retirement age is 60 for 1995 Section (55 for special classes) & 65 for 2008 Section Calculating benefits for someone working whole time Calculating benefits for someone working part time

Normal retirement age is 60 for 1995 Section (55 for special classes) & 65 for 2008 Section 1995 Section – Pension and Lump Sum based on best of last 3 years pensionable pay - lump sum is normally 3 times the annual pension 2008 Section – Pension based on the average of the best 3 consecutive years pensionable pay in the last 10 - no automatic lump sum Both Sections have the option to give up some of the annual pension in exchange for a lump sum or a higher lump sum For every £1 of annual pension you give up you would receive an additional £12 lump sum subject to HMRC maximum Age retirement – 1995 and 2008 Sections

NHS Pension Scheme For members of the 1995 and 2008 Sections pension benefits are based on: Your pensionable or reckonable pay at or near retirement The amount of whole time equivalent membership accrued

NHS Pension Scheme – Whole Time 1995/2008 Membership History An Employee – SD 75/ FromToContractYearsDays 01/02/200031/03/2007Whole Time759 01/04/200731/03/2015Whole Time80 Total Membership 1559

Calculating Your Pension – Whole Time NHS Pension Scheme 1995 Section Pensionable pay = £25, Membership = 15 years 59 days = 5,534 days 80 years x 365 = 29,200 days Pension Benefit Calculation £25, x 5,534 = £4, Annual Pension 29,200 £14, Lump Sum (usually 3 x Annual Pension)

Calculating Your Pension – Whole Time NHS Pension Scheme 2008 Section Pensionable pay = £25, Membership = 15 years 59 days = 5,534 days 60 years x 365 = 21,900 days Pension Benefit Calculation £25, x 5,534 = £6, Annual Pension 21,900 £0 Lump Sum

NHS Pension Scheme – Part Time An Employee – SD 75/ /2008 Membership History FromToContractYearsDays 01/02/200031/03/2007 Whole Time759 01/04/ /03/2015 Part Time40 Total Membership 1159

Calculating Your Pension – Part Time NHS Pension Scheme 1995 Section Notional Whole Time = £25, Membership = 11 years 59 days = 4,074 days 80 years x 365 = 29,200 days Pension Benefit Calculation £25, x 4,074 = £3, Annual Pension 29,200 £10, Lump Sum (usually 3 x Annual Pension)

Calculating Your Pension – Part Time NHS Pension Scheme 2008 Section Notional Whole Time = £25, Membership = 11 years 59 days = 4,074 days 60 years x 365 = 21,900 days Pension Benefit Calculation £25, x 4,074 = £4, Annual Pension 21,900 £0 Lump Sum

This is a Career Average Revalued Earnings scheme A normal pension age equal to the State Pension Age No limit on pensionable membership Each tax year of pensionable pay builds up a pension pot that counts separately towards the build up of final pension benefits These individual pension pots are re-valued at the end of each tax year in line with CPI plus 1.50% Entering into any salary sacrifice arrangement that reduces pensionable pay will have a negative effect on the amount of pension built up in that year Age Retirement – 2015 Scheme

2015 Calculation

NHS Pension Scheme – Voluntary Early Retirement Voluntary Early Retirement (VER) is available to members over the minimum retirement age 1995 Section – Minimum retirement age is 50 except for members who joined the scheme on or after 6 April 2006, their minimum retirement age is Section – Minimum retirement age is Scheme – Minimum Retirement age is 55 Pension benefits are reduced for being paid early If you have membership prior to 6 April 1997 your reduced pension must exceed the Guaranteed Minimum Pension (GMP), please contact NHS Shared Business Services for further information

NHS Pension Scheme – Draw Down 2008 Section and 2015 Scheme: Option to take partial retirement from age 55 and receive some of your benefits if you reduce your pensionable pay by 10%: Reduce working time or Switch to a less demanding role You can take between 20% and 80% of your pension benefits and continue to build up future membership The benefits would be reduced if they are taken before your normal retirement age Option to drawn down benefits twice before retiring completely

Applying for Retirement Benefits You will need to terminate your employment Four months from your retirement date contact NHS Shared Business Services Retirement pack includes; Form AW8 Estimate (Commutation) Retirement Booklet NHS Shared Business Services calculate reckonable pensionable pay and submit to NHS Pensions NHS Pensions calculate pension benefits due Equiniti Paymaster pay the NHS Pension

Working After Retirement Have a break in employment (minimum of 24 hours or one calendar month). Consider your local policy/arrangements Re-employed on a new contract 1995 Section - No more than 16 hours per week in first month following retirement If you are ‘Special Class’ and retire between age 55 and 60 the sum of your pension and the pay in your new job must not exceed your earnings prior to retirement New employment will not be pensionable – if retiring from 1995 Section New employment can be pensionable – if retiring from 2008 Section this excludes organisations who have closed direction status

Things to Consider Coming Up to Retirement Are you contributing to the NHS Pension Scheme Do you know which Scheme or Schemes you are or have contributed to Is your membership statement correct Have you accessed your Total Reward Statement If Voluntary Early Retirement do you have membership prior to 6 March 1997 Is a GMP test is required Four months from your retirement date Contact NHS Shared Business Services for retirement pack Are you returning to NHS Employment Have the appropriate break Must be on a new contract Eligible to continue to contribute to NHS Pension Scheme Will abatement apply

More Information To Register for Members newsletter:

Total Reward Statements obtained via: ESR Self Service or Government Gateway to register Once registered your user name and password will be posted to your home address More Information

NHS Shared Business Services Employment Services Desk: More Information

NHS Pensions website: NHS Pensions Helpline: The information provided on these slides cannot override the NHS Pension Scheme rules and regulations and are subject to change. For the most up to date information please refer to NHS Pensions website More Information

Any Questions?