pensions

[Delaneym]

I have just contacted the nhs trust pension dept and have been advised that if I am going to australia and it is longer than 6 months ( I am hopefully going for good but am taking a 2 year career break) that I have to either pay the pension money each month and 14% of my current wage as the employers contribution or I opt out and then if/when I return I request to go back into the scheme.

Any thoughts? I am 47 now have been employed by the trust for 12 years and just wondering if I should find the money each month or opt out and take up another scheme?

Thanks for any advice

Marion

[Guest The Pom Queen]

Hi Marion

I will move your post in to Andrews forum, he knows everything there is to know about pensions.

[Guest The Ropey HOFF]

The wife is a nurse with a 27 year pension and it is a good pension scheme, it's interesting what you said about still being able to pay into it, is it because you got the 2 year career break and do they guarantee you your job back, do they have to by law?

[Delaneym]

I met with the Drector of HR last week. I told her that others on this thread were not allowed to work during a career break. (Our policy says that we cannot work unless we are overseas and the work will enhance the skills and knowledge which would be invaluable to my role in the trust.) Director was suprised at this and said maybe staff interpreting it themselves or their trusts really do not allow any break unless for study etc.. as I met the critera by going to work overseas and that it would enhance my knowledge and skills. ( for a mental health trust we are very cool obviously!)

My job is guarenteed for the first 12 months and then after that ( I can have a career break for up to 5 years) it would be whether my job still available or a job in the trust I would be risk matched to. If there was no job at all I would not recuieve redundancy money. My boss has agreed not to fill my job on a permenant basis for 2 years ( as she believes I will be back !) so I can only tell you what I know for myself.. the pension however is a different kettle of fish!

[Guest The Ropey HOFF]

The one year career break is very interesting to me, I think it's the same at the prison where I work, do you agree a specific date of return and just turn up and start again, are they obliged to just allow you back by working law?

 

It would give us both a chance to go out to Australia and see if it is the right, or wrong decision for us, at least we would have tried it.

[Delaneym]

she has said (I complete the form very basic form to be honest for such a massive move!) with a start date and it is a year from then. If i go end of August i will have 14 days annual leave to take as well so she says to put my last day as the last one of the annual leave dates so I have the extra 3 weeks on top of the year. Then If I decide to come back before the years up I need to give the trust as much notice as possible and my manager can only second someone into the role so they would have to be asked to leave early. I am told that i have to keep regular contact with the manager during the career break by e-mail to confirm my intentions. Hope this helpful!

[Andrew from Vista Financial]

I have just contacted the nhs trust pension dept and have been advised that if I am going to australia and it is longer than 6 months ( I am hopefully going for good but am taking a 2 year career break) that I have to either pay the pension money each month and 14% of my current wage as the employers contribution or I opt out and then if/when I return I request to go back into the scheme.

Any thoughts? I am 47 now have been employed by the trust for 12 years and just wondering if I should find the money each month or opt out and take up another scheme?

Thanks for any advice

Marion

 

Hi Marion

 

 

I'll have a go at answering given the limited details I have.

 

The NHS scheme is a final salary scheme and the benefits you are entitled to are generally based on final/average salary at leaving scheme or employer, years in service and scheme accrual rate.

 

Given you have 12 years service I will try to give an example of how it might work and I will assume that the NHS scheme accrual rate on your scheme is 1/60ths.

 

So as a rough guide and in this example using a final salary of 30,000 GBP annually as follows:

 

12 (years service) x 1/60th (scheme accrual rate) x 30,000 GBP (annual salary) = 6,000 GBP annual Pension benefitscurrent retirement benefits.

 

Now lets do this again based on another 2 years service (i.e 2 more years of contributions):

 

14 (years of service) x 1/60th (scheme accrual rate) x 30,000 GBP (annual salary) = 6,999 GBP annual Pension benefits, therefore an extra 999 GBP annually in retirement.

 

 

You say that the contributions would be 14% so assuming 14% of 30,000 GBP salary = 4,200 annually x 2 years = 8,400 GBP.

 

To make up this money you would have to live longer than 8.4 years (8,400 GBP / 999 GBP) in retirement (taking the annual benefits).

 

This is a very broad calculation and does not take into account cost of living increases, annual pay increases, your marital status etc etc.

 

 

The other consideration is that instead of paying into the NHS from Australia with Australian dollars to use the funds to pay to an Australian Super scheme via a concessional contribution which is pre-tax therefore lowering your taxable income.

 

 

Also if you are to consider transferring your NHS Pension at some point in the future to Australia then a different calculation would take place altogether, this is an actuarial calculation that essentially calculates a lump sum offered by the NHS to you to transfer your accrued benefits ending the NHS schemes future liability to you.

 

 

A lot of things to consider!

 

Regards

 

 

Andy

 

 

 

The above is general advice on