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Pensions
As a UNISON Branch, we are fortunate enough to have our own Pensions Officer to offer advice and support to our members. Ian McKenna is the Pensions Officer and can be contacted on imckenna@eeas-unison.com
The NHS Pension Scheme dates back to 1948. The scheme is statutory (scheme rules are enshrined in law, as opposed to a trust deed) and occupational (connected to NHS employment). The NHS Pension Scheme is a voluntary scheme in which members can join at any time during their employment within the NHS. The normal retirement age is 60 for both men and women although there are provisions for those with special status to retire from age 55 without a reduction in pension benefits.
Currently, the scheme is a contracted-out, final salary and therefore benefits built up are based on the number of contributory years in the scheme and salary at or near retirement. The cost of contributing to the scheme is a proportion of salary. If tax and national insurance contributions are ignored, the contribution rate is a standard 6% for most employees, 5% for those classed as "manual" staff.
The NHS Pension Scheme benefits are built up in addition to state pension. Therefore at retirement the benefits gained are paid on top of any basic state pension built up. A member of the NHS Pension Scheme pays lower national insurance contributions as the scheme is contracted out of the state second pension (formerly SERPS) and tax relief is granted on contributions. Therefore the contribution rate for staff is about 1.4% lower than 6/5% quoted above. Contributions are deducted from salary by employers and held in a "notional fund". There is a uniform contribution rate for employers.
The rules of the scheme are operated under statutory regulations which require an Act of Parliament for any changes to be made. Consequently, the scheme is considered more secure than schemes set up under trust, but there are no trustees and therefore no discretionary powers to grant benefits that are not contained within the regulations.
The scheme includes provisions for the granting of ill-health benefits. If one is "permanently incapacitated" this means early payment of benefits from age 50 on redundancy or retirement in the efficiency of the service. It also provides for payment to a widow/widowers (of a legally married spouse) in the event of a scheme member's death.
The scheme is administered by the NHS Pensions Agency which is also responsible for the running of the injury-benefit scheme available to all, regardless of membership of the NHSPS.
On April 1 2008 the NHS Pension Scheme was updated with some significant changes. Key features of the Scheme have been retained for those in membership on and immediately before 1 April 2008, including a normal retirement age of 60 and a pension based on final salary. This scheme will continue to be called the NHS Pension Scheme but for ease of identification is referred to as the NHS Pension Scheme (Amended April 2008).
At the same time a brand new scheme was launched for new members joining for the first time on or after April 1 2008. The New NHS Pension Scheme will have a normal retirement age of 65, and greater flexibility around how and when members take their pension.
Members joining for the first time on or after April 1 2008 will only be able to join the New NHS Pension Scheme. This situation is slightly more complicated for people rejoining with previous membership of the NHS Pension Scheme. Further information is available in the factsheet for deferred members available in the members’ library.
Ian McKenna will attempt to answer some of the most frequently asked questions relating to pensions advice.
When can I a change from existing policy to the new one?
If you decide you want to change then you will have to wait till June 2009, so that’s one year from now, then you have one year to dicide then you can apply to change, I believe that there may be an onlne application for you of I could aquire a paper version nearer the time. After june 2010 you cannot change over to the new pension.
Ill health benefit what are the changes to this policy, and when does it change?
On the 1st April 2008 the ILL health policy changed these changes can be found on website www.illhealthretirement.nhsbsa.nhs.uk
What advise can you give me on whether I should change my pension to the New pension policy?
Ian McKenna will give anyone who asks their options, but the choice on whether to change over to the New pension scheme will be down to you and consider your own cicumstances, you have 2 years to think about it .
What are the differences between the present pension scheme and the new pension scheme ?
The differences between both pensions can be clearly seen in the document on the web site at www.pensions.nhsbsa.nhs.uk Ian McKenna can provide copies in hard format which can be sent out at your request.
How can my branch guide me through the decision of what to do next?
Ian can be contacted on 07870544241 or emailing me on imckenna@eaamb-unison.com we can either talk over phone or set up a meeting where ever you are in East Of England Ambulance Service and a Unison member. The other route is I hope to keep updating the Unison monthly letter with snippets from the pension scheme and the web site so we are doing our bit to inform all members.
What changes are there to our existing pension?
There are changes to the pension scheme that most of us have and there is a booklet available with these changes explained, the changes are also on the website on www..nhspa.gov.uk.
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