News & Views Retirement Latest Proposed Changes to NHS Pension Scheme
NHS Pension UpdateLatest NHS Pension proposed changesHaving agreed negotiations with the Government have gone as far as they can, the BMA and other unions have, in the last few weeks, been balloting their members on the latest proposed NHS pension changes. How do the latest NHS Pension Scheme proposed changes affect you? Broadly speaking you will fall into one of three categories: If you're 50+ years old as of 1st April 2012There’s minimal change for members of the NHS Pension Scheme who, as of 1st April 2012, have 10 or less years to the normal retirement age of 60. The only change that will affect you is a staged increase in your contributions over the next few years starting with an increase of up to 2.4% from April 2012. If you’re between 46½ and 50 years old as of 1st April 2012Those who are within 13½ years of the normal retirement age of 60 will have limited protection. For every month of your age beyond 10 years, you will lose 2 months of protection. At the end of this period, you will be transferred to the new scheme. For example, Mr Heart is now 48 with 12 years to go on his NHS service. Because he has 2 years potential service over 60 (24 months – this is doubled to 48 months), he will be able to stay in the old NHS Pension Scheme until age 56 but, after this, he must join the new Scheme. All his benefits accrued to age 56 will be protected and payable at age 60. If you’re younger than 46½ years old as of 1st April 2012For everyone with more than 13½ years’ service, the impact is greater. From April 2015, all NHS pension members will be on the new scheme:
Many of the above changes are still to be finalised so ‘watch this space’. To review your pensions plans and ensure your benefits are on track, contact your financial adviser.
Article by Andrew Morgan  |