Q. With all the recent announcements regarding proposed changes to the NHS Pension Scheme, I have heard that the actuarial reduction percentages have changed for members that are looking to take benefits prior to normal retirement date.
Can you please clarify the position?
A. The good news is that the percentage reductions have reduced slightly. As you are a 1995 section member, let’s look at how you would be affected.
Prior to the change, if you were to take benefits at age 55 your pension would be reduced by 24%, with the lump sum being reduced by 16%. Now the figures are 22/15%, which may not appear to be a big difference, however if you have accrued a pension of £40,000 pa by age 55 and decide to take the benefits you would now receive an additional £800 pa.
You are able to take pension benefits from age 50 or 55, depending upon various factors. Any pension paid to you will increase with inflation each April, although this only applies from age 55.
You can read full details at the NHS’s website.
