Taking a Pension

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Taking a Pension

• London
• 16th June 2004

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Question 5

• Communication between agency, scheme members
• No fixed retirement date
• In favour of flexible retirement age
• Concerns about keeping people in work for longer
  should still allow people to retire at an
  earlier age i.e. 55
• People make decisions about retirement too late
  better provision earlier

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Question 1

• Agree in principal see several problems i.e.
  administration issues would need annual benefit
  statements
• Staff may seem suspicious of a scheme with no
  fixed retirement date
• Scheme currently allows membership up to age 70.
  Issue may be about the target income on which the
  member chooses to retire

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Question 2

• If staff were to rejoin the scheme it should be
  on the new service only
• Remove one month break
• Abatement should be based on enhanced elements
  only
• There should be pensionable re-employment
• Those who achieve maximum service should cease
  contribution, but maintain life cover.
• Risk that restrictions might encourage agency
  working
• Second Pension should not be aggregated

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Question 4

• Good in theory would it work in practice?
• Should be draw down possibilities twice from 55
  to 65
• Need clarification of IR and scheme rules
• Need for effective communication
• What would happen about death in service, ill
  health and redundancy after taking part of the
  pension
• What resources will be made available to trusts
  to implement these changes locally?
• Less risk of draw down is only once

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Question 4

• Staff to be made aware of what they could be
  losing by drawing down part of their pension
  benefits
• Maybe undue pressure on older staff to retain
  their skills
• Risk that decisions made now may be regretted in
  the future
• Prefer pensionable re-employment to draw down
• Contradiction between encouraging staff to
  continue in full time work and encourage
  part-time work
• Employers need to understand the choices
  clearly-BIG COMMUNICATION ISSUE
• NHS PA must enable staff to make informed choices
  via ABS by 2006
• NHSPA will develop further modelling tools which
  would enable staff to see effects of different
  choices

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Question 4

• Some employers already use Pensions online to
  produce ABS e.g. one employer has been using this
  for two years.

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Question 3

• Step down and wind down is a sufficient incentive
  but is not widely publicised
• Managers should know a bit more about the scheme
  in order to offer help to staff
• Setting a limit of 50 and frequency of draw down
• Clarify issues around those who have no
  dependents
• Flexibility but informed choice in order to make
  decisions
• Issues around personal choice between higher
  personal benefits and low survivor benefits
• Child allowance Vs Widow/er allowance
• Moving to a NPA 65 possible to build up 47 years
  service but if benefits taken before 65 they will
  be subject to actuarial reduction
• Guard against staff expectations being
  inconsistent with employers expectations e.g.
  Issues around early retirement

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