NHS pension scheme:Flexible retirement rules to change in April 2023

As of April 2023, it is proposed that members of the 1995 and 2008 sections of the NHS pension scheme can access their pension and lump sum without the need to ‘retire and return’. Instead, members will be able to continue to work without a change or break in service.Will the new flexible retirement rules affect you?

This decision will allow the continuation of permanent employment contracts and the ability to retain any CEAs or discretionary points. Those employees who have taken their pension from the 1995 section will be able to join the 2015 scheme and continue contributing towards a pension. One of the barriers to drawing a pension early has always been the loss of employment rights, moving to fixed-term contracts and the loss of awards.

Changes to flexible retirement rules should attract and retain staff

These new proposals are aimed at better staff retention and greater flexibility for medics whilst helping employers retain their most experienced staff. This more flexible approach supports a healthy work-life balance, especially for those heading towards the end of their careers and retirement

The full details of the changes are not available yet. However, it is thought there will also be the ability to change the ratio of pensionable to non-pensionable pay to prevent annual allowance tax charges

It is being mooted that there would need to be a reduction in pensionable pay of 10%. The details of how this would happen have also not been clarified as yet, so keep checking our blogs as we will let you know as soon as we know the small print.

Anyone past a normal retirement age but continuing to work may especially like to reconsider their position and discuss their options with their relative pros and cons with their advisor. 

If you think flexible retirement rules may suit you we recommend speaking with your Legal & Medical Adviser to discuss the option as there are potential implications for your Lifetime allowance that would need to be discussed, amongst other areas.

Will the suggested changes help retain staff? Let us know by leaving a comment below.

This article is not specific advice and full consideration of your complete situation is essential.

Leave a reply

Your email address will not be published. The name, email and comment fields are required.

We use cookies to ensure that we give you the best experience on our website. If you continue we'll assume that you are happy to receive all cookies from this website. Read more Close