In this edition of the learning zone we explore the features of the new 2015 NHS Pension Scheme that are the same as the 2008 Section of the NHS Pension Scheme.
Other than the changes already mentioned previously, the benefits of the 2015 NHS Pension Scheme are largely similar to those of the 2008 Section. These include:
- Survivor benefits (spouse and children pensions) will continue to be based on an accrual rate of 1/160th and for deaths in retirement these benefits will continue to be based upon the pre-commuted pensions.
- Death lump sums will continue to be payable on the same basis.
- All of the retirement flexibilities of the 2008 Section including being able to retire and then later re-join the NHS Pension Scheme are included in the 2015 NHS Pension Scheme.
- Commutation of a pension into a lump sum on diagonosis of a terminal illness remains the same throughout all sections. Life expentancy must be under 12 months.
- Commutation of pension into a lump sum at retirement is available in both Sections. The commutation is for every £12 of lump sum applied for you lose £1 of pension.
- There continues to be the option of purchasing Additional Pension.
Abatement of pension continues to appy in both Sections. This applies where a member retires and receives their NHS Pension through ill-health or through redundancy and then subsequently returns back to NHS employment.
Breaks in Pensionable Service
For members that have a break in pensionable service of more than 5 years in the 2015 NHS Pension Scheme the pre and post-break service periods will be kept seperate.