If a member of the NHS Pension Scheme is considering taking early retirement (with express agreement of their employer), but not on ill-health grounds, then their pension will suffer an actuarial reduction, and their lump sum will also be reduced. In order to make such an informed decision, members should contact the NHS Pensions Agency in Fleetwood to obtain an illustration of their specific figures. However, this task can take around six weeks to be completed.
In order to expedite this request, the NHS Pensions Agency have introduced a service known as "Pensions On-line," whereby scheme members (in conjunction with a local HR representative) can view instant estimates of their current benefits. On an individual basis, the system allows for modelling of pensions to variable suggested retirement ages, and it can also identify the potential for and cost of purchase of additional membership through AVCs.
The system is provided free to NHS employers through the secure NHS Net, although local Trusts (usually the payroll department) have to register with the agency.
As well as providing an instant benefit statement, the system can illustrate the effect of delaying retirement, the effect of "step down" and "wind down" retirement, and it can also illustrate the effect of "retire and return" and of part-time working.
However, it must be stressed that the system should only be used to provide information and not to give specific financial advice, which would be the remit of an accredited financial advisor.
Furthermore, it must be noted that such a system must NOT be used to apply undue pressure on members to retire earlier than they desire. It also has to be said that any protected benefits (e.g. under a step down scheme) will not reflect either potential increments nor actual pay increases. amicus are seeking a meeting with the NHS Pensions Committee and other unions to discuss such matters.