Pensions FAQ: not within 10 years of normal pension age?

Published: 22 February 2012

Each day this week Gerry O’Dwyer, RCN Senior Employment Relations Adviser, will be answering one of the five questions most frequently asked by members on pensions and the Government’s proposed changes to the NHS scheme.

Today’s question: I am not within 10 years of my normal pension age by April this year. What does this mean for me? Could I still retire at the age I expected?

Gerry says:

The Government has offered that those who are within 10 years of their normal pension age (NPA) as of April 2012 would receive "full protection". However, if this does not include you and you fall within 13.5 years of your NPA, you would instead enter into the "taper".

The taper is intended to avoid a cliff-edge effect and to offer some protection to those closer to their NPA. This would mean that for every month of age you are beyond 10 years from your NPA, you would lose two months of protection. There are detailed tables on the Frontline First website which allow you to work out what this means depending on your date of birth. This is true for anyone, regardless of the scheme they are in, who is within 13.5 years of their NPA by April 2012.

In essence, this would mean that anyone who is not within 10 years of their NPA but who is in the taper as of April 2012 would move over to the 2015 scheme at some point after April 2015. Those in the taper would simply move over later than everyone else, offering them the chance to remain in their current scheme for longer. Mental health officers who are in the taper would stop doubling up in this period.

Everyone else more than 13.5 years from their NPA would move straight to the new scheme in April 2015.

The 2015 scheme has an NPA of 65 originally attached to it, but this will then rise in line with the state retirement age. This would mean that the 2015 scheme NPA would be:

66 by 2020
67 by 2028
68 by 2046.

For many of you, this may mean that under the 2015 scheme you would have an NPA greater than in your present scheme. For example, you may currently have an NPA of 60, which could rise to 67 in the new scheme. Therefore some people might be considering retiring before the NPA in the 2015 section. While this is possible, and anyone can retire provided they have reached the minimum retirement age of 50 for most people, it could have financial implications on your pension.

We would therefore strongly recommend that you do not take any decision about retiring before reaching your NPA without consulting an independent financial adviser. In the meantime, this calculator is a very useful tool to help you estimate what your expected pension might be depending on what age you choose to retire.

RCN pension vote

RCN members only have until 4pm on Monday 27 February to vote on whether they want the RCN to accept or reject the Government's pension proposals.

Many members have already cast their votes but those who have not yet had their say can take part in the ballot by post, telephone or using the internet.

Read NHS pension proposals briefing for RCN members (PDF 432KB) [see how to access PDF files]
Visit the RCN’s pensions website