This is the first of a regular series of technical updates. These will typically focus on those schemes we work with most frequently. This includes the NHS Pension Scheme, the Civil Service Pension and the Local Government Pension Scheme.
NHS Pensions
Within the last month, NHS Pensions have issued the following letter to members of the NHS Pension Scheme
NHSPensions_FlexibleRetirement_DisclosureLetter_202301.pdf (nhsbsa.nhs.uk)
This letter covers the topics raised in the recent consultation published by Government in respect of the McCloud remedy and retirement flexibilities.
The highlights are:
- Allow members to access their 1995 benefits and continue to accrue new pension benefits in the 2015 section if they continue work – retire & return. Expected to be introduced in April 2023
- Abatement would not apply unless a member was retiring with a special class status and under the age of 60
- Partial retirement will be introduced as an option for the 1995 sections, meaning a proportion (up to 100%) of benefits can be taken if there is a corresponding reduction in pay of at least 10%, benefits can continue to be built into the 2015 section. Expected to be introduced in October 2023.
- 2008 and 2015 flexible/ partial retirement rules would be amended to reflect the above (up to 100% from 80% of benefits can be taken)
- The requirement of working no more than 16 hours per week for any retire and return cases, in the first month of re-employment will be permanently removed
- The revaluation of any CARE benefits (Practitioner benefits and 2015 benefits) will move from 01/04 to 06/04 with effect from 2023 to then align the CPI revaluation on the pension benefits and those for the Annual Allowance calculations – which effectively will mean inflation is linked and not disconnected
The letter also states that the Department for Health and Social Care plan to launch a new McCloud consultation in Spring 2023 on how they plan to implement the government’s remedy solution for NHS Pension Scheme members from 1 October 2023.
Combined Nuclear Pension Plan
Amendments have now been approved to amend the Combined Nuclear Pension Plan in line with public sector pension reforms – five years after originally planned.
The Department for Business, Energy and Industrial Strategy and trade unions have agreed on a bespoke Care benefit structure for the new scheme. This means members will retain the normal pension age of the previous scheme – which for most is 60.
More information can be found here Nuclear Decommissioning Authority: pension reform – GOV.UK (www.gov.uk)