1. 02871 319111 www.hscpensions.hscni.net hscpensions@hscni.net
HSC Pensions Service Waterside House 75 Duke Street Londonderry BT47 6FP

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

3. 2015 Scheme 2015 Scheme came into effect from 01/04/2015
Members within 10 years of Normal Retirement Age at 01/04/2012 remain in their current section of the scheme.

4. What are benefits based on?
Pensionable Service
Pensionable Earnings

5. Final Pensionable Salary
1995 section- best of the last 3 years before retirement date.
2008 section- average of best 3 years from last 10 years before retirement date.

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

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

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

9. Option to Increase the Lump Sum
Everyone in 1995 section 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

10. Main Differences 1995 - 2008 1995 Section 2008 Section 80th 60th
Retirement age 60
Death Benefits (Survivors benefits)
Mandatory Lump sum retirement payment
Tax free cash flexibility
MHO / Special class 1995 section only
2008 Section
60th
Retirement age 65
Death Benefits (Survivors benefits)
Tax free cash flexibility

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

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

13. 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.

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

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

16. 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

17. Voluntary Early Retirement (Reduced)
Must be age 50 or over (55 for 2008 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)

18. Reduced VER Benefits 1995 section.
Pension
Lump Sum 59
95%
97% 58
91%
94% 57
87% 56
83%
88% 55
79%
85% 54
75% 53
72%
81% 52
69%
78% 51
67%
76% 50
64%
73%
Reduced VER Benefits 1995 section.
e.g. Voluntary early retirement at Age 51

19. Premature Retirement Redundancy Organisational change
Efficiency of the Service

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

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

22. PN1 – Partner nomination Form
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
PN1 – Partner nomination Form

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

24. Taxation Changes
Lifetime Allowance (LTA). Reduced to £1,250,000 from April 2014 & reducing to £1M from April 2016.
HMRC transitional Protection may be available, directly from HMRC.
Factor of 20 to be maintained.
Pension X 20 + Lump Sum.

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

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

27. 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

28. 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

29. Once your Pension is in Payment
Pension increases paid every April
(VER & Premature Retirement receive increases from age 55)
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

30. Keeping in Touch

31. 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 you work more than 16 hours per week
After one month
Over Normal Retirement Age?
Yes – Your pension will not be affected
No – Your pension may be reduced
You cannot rejoin the 1995 section unless you have retired on Ill
Health and are under age 50

32. Abatement of Pension
Pensioners who return to HSC employment can have their pension abated if their combined income (monthly pension and re-employed salary) exceeds their earnings prior to Retirement.

33. 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
Member’s taking Voluntary Early Retirement are not subject to Abatement Rules

34. 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.

35. 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.
Reduce their earnings in their new employment.
Have their pension suspended
Have their pension adjusted
Any overpayment of Pension must be repaid

36. Website: www.hscpensions.hscni.net
Telephone:
Website: