Pensions FAQ: what does normal pension age mean?

Published: 20 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: what does normal pension age mean and how does it differ from the state pension age?

Gerry says:
In the NHS scheme, the normal pension age (NPA) is the age at which you can take an unreduced pension. Each section of the NHS scheme has a different NPA attached to it:

This is different from the state pension age - this is the age at which you can receive the state pension.

The Government has proposed that those within 10 years of their NPA - the NPA of the part of the NHS pension scheme of which they are a member - would receive "full protection".

Anyone can retire before or after their NPA (provided they have reached the minimum retirement age, which for most people is 50). If they retire before their NPA, they would receive a reduction in their pension (and lump sum if applicable) as benefits are being taken early and would therefore be paid out for longer. Likewise, anyone deciding to retire after their NPA would build up a bigger pension (and lump sum if applicable) from any rise in earnings and increased pensionable years.

The proposed 2015 scheme would have an NPA equal to your state pension age which would then rise in line with planned changes to the state pension age. This would mean that the 2015 scheme NPA would be 65 initially and then:

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