September 4, 2006
NHS Pension Scheme Benefits - Hot Topics Q&A
Q. I'm a practicing dentist and have moved from the NHS to 100% private. How will this affect my NHS Pension? Do I need to continue to contribute to the scheme to receive any benefits in the future?
A. By not contributing to the scheme in the future your pension becomes what is known as 'retained benefits'. For example, if you've built up 10 years service with a leaving pensionable salary of £90,000 pa, you'll receive a pension of £11,250 gross at age 60, inflation protected. You'll also receive a tax free lump sum of £33,750.
If you want to draw the benefits earlier than 60, the amounts will be less as early retirement penalties will apply. Importantly, you do NOT need to continue paying into the scheme to receive these benefits, although it is advisable to remain in the scheme in some form.
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Filed under Pensions, Q&A by Ray Prince
