CHOICE 2 - What does this mean for you?

Why CHOICE 2?

A key component of the new 2015 NHS Pension Scheme is a higher Normal Pension Age, equal to your individual State Pension Age. You can retire earlier but your pension will be reduced for being paid earlier.

Had this information been available to you at the commencement of the previous CHOICE exercise, you may not have elected to have remained in the 1995 Section.

In the interests of fairness, if you are a 1995 Section member without full protection you are being given another opportunity to move your 1995 section membership to the 2008 section, for all your pre 1 April 2015 service. This exercise is known as CHOICE 2.

Who is eligible for CHOICE 2?

To be eligible for CHOICE 2, a member must:

• Be a member of the 1995 Section of the current scheme

• Not have Full Protection (i.e. was within 10 years of your Normal Pension Age as at the 1 April 2012)

If you are eligible you will receive a personalised letter from your employer

Eligible members

No protection

Tapered protection

Members of the 1995 section of the current NHS

Pension Scheme

534,000 members=

What is protection?

• Members who were within 10 years of their Normal Pension Age at 1 April 2012 have full protection and will not move into the new 2015 scheme.

• Members who were between 10 years and 13 years 5 months from their Normal Pension Age at 1 April 2012 will have tapered protection under the new scheme arrangements and will move to the new 2015 scheme at some point after 1 April 2015. The date they move to the new scheme (the length of protection) depends on their age at 1 April 2012.

• Members who were more than 13 years and 5 months from their Normal Pension Age at 1 April 2012 have no protection and will move to the new 2015 scheme on 1 April 2015.

Delivery process

• Personalised letters produced by the NHS Business Services Authority (NHSBSA) are currently being distributed via employers

• These letters should all be distributed by the end of November

• The different types of letter are as follows:

Officer non-protected Practitioner non-protected Special Class non-protected Officer tapered protection Practitioner tapered protection Special Class tapered protection

What do you need to do?

• Read your CHOICE 2 letter in full to understand the implications as this decision could be very important for you

• Make use of the CHOICE 2 Calculator and resources on the NHS Pensions website

• If you want to transfer your pre 1 April 2015 benefits to the 2008 Section, complete the online response form (on the NHS Pensions website) or request a hard copy from the Helpline (details at end)

• The deadline for NHS Pensions to receive CHOICE 2 decisions is 16th March 2015

• Once you’ve made a decision it cannot be changed

• If you decide not to move you do not need to do anything – you will remain in the 1995 section by default

To Transfer or not to transfer?

• You will hopefully have a relatively clear idea once you’ve read your personalised letter and looked through the various resource material

• The general gist is if you are likely to work to close to your State Pension Age then it’s likely to be beneficial to transfer because of the better pension build up rate and flexibilities in the 2008 Section

• If you are someone who values retiring early then you are likely to be better off staying where you are

• If you have MHO or Special Class Status you would lose this on transferring so are likely to be better staying where you are

Resources/Contacts

• NHS Pensions – CHOICE 2 dedicated webpage - http://www.nhsbsa.nhs.uk/Pensions/4640.aspx

• CHOICE 2 Member Helpline: 0300 123 1601

• CHOICE 2 E-mail enquiries: nhsbsa.choice2members@nhs.net  

• UNISON assistance: a.fox@unison.co.uk or 020 7121 5514