Q: Can you clarify for me the accrued rights of current NHS Pension Scheme (NHSPS) in regard to actuarial reduction, currently 5% per year for every year below 60.
If the retirement age goes to 65 or above would this mean two separate calculations, for example, no loss if retiring at 60 on the years prior to any change and then presumably 5% per year for every year below 65 on the years after the change.
Is this already safe or being negotiated?
A: In response to Lord Hutton’s report on public sector pension schemes, NHS Pensions has published a notice on its website at www.nhsbsa.nhs.uk/3363.aspx which explains that it is too early to be clear about the detailed effects that any reforms will have for the NHSPS scheme.
However, if the reforms are implemented as per Lord Hutton’s recommendations, then any change to the normal pension age (the age at which members can draw benefits un-reduced) will apply only to benefits built up after the date any new arrangements are introduced.