Choice 2 Information and actions for employers
Why Choice 2? A key component of the new 2015 NHS Pension Scheme is a higher normal pension age, equal to member’s state pension age, with pension reduced if a member decides to retire earlier. Had this information been available at the commencement of the previous Choice exercise, some members may not have elected to remain in the 1995 section. This resulted in a decision, in the interests of fairness and members making the most of their pre 2015 benefits, to provide those affected with another opportunity to decide whether to move their 1995 section membership to the 2008 section. This exercise is known as Choice 2.
Who is eligible for Choice 2? To be eligible for Choice 2, a member must: Be a member of the 1995 section of the current scheme have tapered protection or no protection. You will receive a list of eligible members in your organisation.
Eligible members No protection Tapered protection Tapered protection Members of the 1995 section of the current NHS Pension Scheme Approximately 500,000 members =
What is protection? Members who were 10 years or less from their normal retirement age at 1 April 2012 have full protection and will not move into the new 2015 scheme. Members who were between 10 years and 13 years and 5 months from their normal retirement age at 1 April 2012 will have tapered protection under the new scheme arrangements and will move to the new 2015 scheme at some point after 1 April The date they move to the new scheme (the length of protection) depends on their age at 1 April Members who were 13 years and 5 months or more from their normal retirement age at 1 April 2012 have no protection and will move to the new 2015 scheme on 1 April 2015.
How will Choice 2 be delivered? NHS Business Services Authority (NHSBSA) will produce personalised letters for each eligible member During October and November 2014, the letters will be delivered to employers to distribute to members Online calculators and examples will be made available to members via the NHS Pensions website An online response form will be available on the NHS Pensions website or hard copy via the helpline (further details tbc)
What do members need to do? Members will need to read their Choice 2 letter in full to understand the implications for them They will be encouraged through their letters to make use of the online calculators and examples If a member wants to move their benefits to the 2008 section, they complete the online response form (on the NHSBSA website) or request a hard copy from the helpline (further details tbc) The deadline for NHS Pensions to receive Choice 2 decisions will be confirmed in due course Once a member has made a decision it cannot be changed Members who decide not to move do not need to do anything – they will remain in the 1995 section by default
What do you need to do? Plan now how you will ensure your staff receive their personalised Choice 2 letters: you can choose to deliver these in the most effective way for your organisation you must distribute the letters to all eligible members in order to meet your Scheme Disclosure requirements you must deliver the letters to the members within four weeks of receipt to ensure that eligible members have a three month decision window.
What else do you need to do? Think about how you will signpost your staff to additional resources to support them through the decision making process including: High level information via the NHS Pension Scheme: Arrangements beyond 1 April 2015 section of the NHS Pensions websiteNHS Pension Scheme: Arrangements beyond 1 April 2015 Examples and calculators on the NHS Pensions website (available nearer Choice 2) Dedicated member Choice 2 webpage on NHS Pensions website (available nearer Choice 2) Dedicated member telephone helpline and address for queries (available nearer Choice 2).
Resources for employers NHS Employers also has a range of Choice 2 resources: Our Choice 2 webpage will be updated regularly as information is availableChoice 2 webpage We are hosting a webinar Choice 2 - making the most of pre-2015 benefits together with NHS Pensions on 3 September Read more and book your placebook your place Our Choice 2 timeline is available to download and share. The timeline highlights the key events for the Choice 2 exerciseChoice 2 timeline Copies of Choice 2 letters will be made available on the NHS Pensions website nearer the start of the Choice 2 exerciseNHS Pensions website
Choice 2 Timeline
Further information The NHSBSA Choice 2 webpage will be updated as and when more information is available Visit for more information on the Choice 2 exercisewww.nhsemployers.org/choice2 You can us at