Posted 02 October 2023 - 09:00
Posted 02 October 2023 - 09:00
News
Flexible working: some nurses can gain early access to pension
Nurses with a 1995 legacy pension will now be able to access some or all of their pension without having to fully retire
Nurses with a 1995 legacy pension will now be able to access some or all of their pension without having to fully retire
Nurses will be able to partially retire and still access their NHS pension under new changes aimed at supporting flexible working coming into effect this month.
Nurses with 1995 legacy pensions will be able to have early access to pension
Nursing staff who are part of the 1995 legacy NHS pension scheme in England, Scotland and Wales will be able to draw down on all or some of their pension while continuing to work in the health service and pay into their pension, with their employer’s agreement.
Under the changes, which came in on 1 October, nurses can take from 20% up to 100% of their pension benefits in one or two payments without leaving employment.
However, they would be required to reduce their pensionable pay by at least 10% before they can take partial retirement. This could be done by moving into a lower paid role or reducing hours.
Before the changes, nurses on the legacy scheme would have to leave working in the NHS to access their pension.
There are three NHS pension schemes – 1995, 2008 and 2015. Those in the 2008 or 2015 schemes can already take advantage of this.
Who is eligible for partial retirement?
To be eligible for partial retirement you must:
- Have reached your minimum pension age
- Be an active member of the NHS pension scheme
- Reduce your actual pensionable pay by at least 10% for at least 12 months from when partial retirement is taken
- Have a change in your employment terms and conditions following the reduction
- Have had the previous level of pensionable pay prior to partial retirement for at least 12 months
Source: Unison: Flexible retirement options for NHS staff – information for branches
Previous access to nurses
From 1 April 2022, all active members of the NHS pension became part of the 2015 scheme. The 1995 and 2008 legacy versions closed at the end of March 2022. But many staff have accrued pension benefits in either or both of the legacy schemes.
Previous changes to the pension scheme, which came into effect in April 2023, allowed those in the two legacy schemes to retire, access their pension and return to work while continuing to pay into and build up benefits. However, they could not access their pension while continuing to work.
Find out more
Information on all NHS pension schemes and changes:
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