the HSC Pensions Service Waterside House 75 Duke Street Londonderry BT47 6FP

WHICH SCHEME AM I IN? 1995 Section. Membership of superannuation scheme started before 31 st March Section. Members who have joined scheme form 1 st April 2008 onwards.

What are benefits based on? Pensionable Service Pensionable Earnings

Final Pensionable Salary 1995 scheme, best of the last 3 years before retirement date scheme, best of the last 3 years before retirement date Average of best 3 years from last 10 years before retirement date Average of best 3 years from last 10 years before retirement date.

Pension 1995 Scheme. 1/80 th of final superannuable earnings for each year’s service in the Scheme. For example Service: 40 years Earnings: £20,000 Pension: 1 / 80 x 40 years x £20,000 = £10,000 pa

Pension 2008 Scheme. 1/60 th of final superannuable earnings for each year’s service in the Scheme. For example Service: 40 years Earnings: £20,000 Pension: 1 / 60 x 40 years x £20,000 = £13,333 pa

Lump Sum 1995 Only. 3/80ths of final superannuable earnings for each year’s service in the Scheme. Example Service: 40 years Earnings: £20,000 Lump Sum: (Pension X 3 ) £10,000 x 3 = £30,000

Option to Increase the Lump Sum Everyone in 1995 scheme must take the standard lump sum of 3 x pension This can be increased to 5.36 x pension Paid for by reducing your pension Every £1 of pension ‘Given up’ will purchase an additional £12 of lump sum

Split Lump sum Men who are or who have been married and who were in the Scheme before 25 March Service prior to 25 March 1972 counts at 1/80 th for Lump Sum.

Main Differences Scheme 80th Retirement age 60 Death Benefits (widow/er) Lump sum retirement payment MHO / Special class 1995 only 2008 Scheme 60th Retirement age 65 Partner death benefits Tax free cash flexibility

1995 –2008 Comparison Based On 20 yrs service, final salary of £20, scheme2008 scheme 1995 scheme2008 scheme Pension £5,000Pension £6,666 Lump Sum £15,000No Lump sum MAX Lump sum Pension £4018Pension £4286 Lump Sum £26,784 Lump sum £28,560

Part-time Employment Superannuable service and earnings are changed to equivalent full-time amounts. For example (i) 3 years at full-time = 3 years full-time service (ii) 6 years at half-time = 3 years full-time service = 6 years full-time service

Part-time Employment Your service will be scaled according to the hours you work over your standard hours. For Example If you work 20 hrs/40 hrs your service will be scaled. For each year of service you will be credited with ½ year for pension purposes. For pension purposes your pay will be based as if you were working full-time. eg. If you earn £5,000 part-time then for pension purposes your pay will be £10,000.

Types of Retirement Benefits Age Incapacity Voluntary Early Retirement (Reduced) Premature (Redundancy etc)

Age Retirement Must retire from all HSC employments Payable at age Scheme. (Age 55 for Special Classes/MHOs) Payable at age Scheme. Monthly Pension (Taxable) Lump Sum 1995 only (Non taxable one-off payment)

Incapacity Retirement No age limit – must have 2 years membership Permanently incapable of carrying out the duties of your employment (Tier 1 – no enhancement) Permanently incapable of carrying out the duties of any regular employment (Tier 2 – enhancement) Must retire from all HSC employments Monthly Pension (Taxable) Lump Sum (Non taxable one-off payment) Return to work, subject to abatement

Voluntary Early Retirement (Reduced) Must be age 50 or over ( scheme) Must have 2 years membership Must retire from all HSC employments Benefits are reduced Monthly Pension (Taxable) Lump Sum (Non taxable one-off payment)

Pension Lump Sum 5994%96% 5889%93% 5784%90% 5680%87% 5575%84% 5472%81% 5368%78% 5265%76% 5162%73% 5060%71% Reduced VER Benefits 1995 scheme. e.g. Voluntary early retirement at Age 51

Premature Retirement Redundancy Organisational change Efficiency of the Service

Family Benefits Life Assurance (Death gratuity) Survivor pension (Widow/er, civil partner, nominated partner) Child Allowance

Life Assurance In service – twice superannuable pay Pension in payment – Gratuity may be payable if death occurs within 5 years of pension start date.

Survivors Pension Pension in payment – (Male member dies) ½ the rate of pension payable at date of death (37.5 % of pension at date of death 2008) Pension in payment – (Female member dies) ½ rate of pension based on members service from 6/4/88 (37.5 % of pension at date of death 2008) PN1 – Partner nomination Form

Child Allowance Dependant Children Can be Payable until age 23 – but no later! Can be Payable until age 23 – but no later!unless Child is permanently incapable of earning a living because of physical or mental infirmity Child is permanently incapable of earning a living because of physical or mental infirmity

Taxation Changes Lifetime Allowance (LTA). Reduced to £1,250,000 from April 2014 HMRC transitional Protection may be available, TBC. Factor of 20 to be maintained. Pension X 20 + Lump Sum.

Taxation Changes From April 2014 reduced to £40,000 pa. Factor of 16 to be used to calculate tax liability Liability to be ascertained by trust. Up to 3yrs Unused allowance may be carried forward

Accrued Pension at end of current PIP: Based on new Final Salary and Pensionable Service at that date Accrued Pension at end of previous PIP: Based on Final Salary and Pensionable Service at that date Start End “ Pension Input Period” Increase in pension growth x 16 = “Pension Input Amount” PIPs and PIAs

Applying for Benefits If possible, make your application at least 3 months before your intended retirement date Pension application form – AW6 Incapacity application form – AW33(IS) Both forms should be available from Personnel Any outstanding annual leave will put back your date of retirement

Payment of Benefits Lump Sum – Non-taxable – One off Payment Pension – Paid monthly – Last bank day of month – Taxable income Paid direct to your bank or building society account

Once your Pension is in Payment Pension increases paid every April (but only from age 55 for VER & Premature Retirement) Backdated pay awards Your former employer will notify HSC Pensions Branch of any backdated pay awards and your benefits will be re-calculated and arrears paid Change of address/circumstances Notify Pensions Service

Keeping in Touch

Re-employment in the HSC Within 1 month of retirement Your pension will normally be suspended if you do not take a 24 hr break, and if work more than 16 hours per week After one month Aged 60 or over? Yes – Your pension will not be affected No – Your pension may be reduced You cannot rejoin the Scheme unless you have retired on Ill health and are under age 50

Abatement of Pension Pensioners who return to HSC employment can have their pension abated if their combined income exceeds their earnings prior to Retirement.

Abatement Rules Abatement rules differ according to your own individual circumstances and the type of pension you receive. Each member will have a permitted to earn amount which should be checked with Pensions Service prior to taking up any new HSC employment

Abatement Rules The Pensioner must inform their Employer they are in receipt of a HSC Pension. The pensioner must inform HSC Pensions Service of their return to HSC Employment.

How is the pension affected  If a member returns to NHS employment after retirement and the pension is subject to abatement, a number of options are open to the member. 1. Reduce their hours in their new employment. 2. Have their pension suspended 3. Have their pension adjusted 4. Any overpayment of Pension must be repaid

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