Form Aw8 11a
Berniece Domnick
At the start of the COVID 19 outbreak we took a number of steps to support employers who were encountering issues due to the lockdown restrictions. This included agreeing to accept certain applications forms in PDF/Word format via email, instead of by post.
Once received the NHS Pensions scanning team save the application to the member's file and arrange for the correct service team workflow to be launched. This has proved to be a successful and efficient way of handling paperwork and we thank those employers who have quickly adapted to the changes.
The guide for pensioners and their dependants is designed to answer your questions regarding your retirement and receiving your HSC Pension. You should read this booklet before applying for your benefits.
When considering retirement you should arrange to meet with your with your Line Manager to discuss your proposed retirement date. You should then complete an Online AW6 Pension Application and forward to your HR Department with a copy of your birth certificate. Your Line Manager should submit a Leaver Notice on HRPTS at the same time otherwise HR cannot process your application.
When you retire your pension is usually paid monthly in arrears into a UK bank account for the rest of your life. For those living abroad we can usually arrange to pay your benefits into a bank account there, providing it can accept secure electronic payments.
HSC Pension Service are fully index-linked to protect against inflation. This means that your pension will be increased each year in line with the cost of living, for as long as it is paid. The increases are paid from April. In the first year of your retirement the amount of increase you get will depend on the date you retire.
Different benefits apply to the 1995/2008 section and the 2015 Section of the HSC Pension Scheme and also what type of member you are. To find out which section of the Scheme you belong to please refer to the flowchart in the Scheme Guide available on our Scheme Guide section.
The Scheme is completely separate from the State pension arrangements or any other pension schemes you may have. This means that you will normally get a separate basic state pension as well as your HSC pension.
The Scheme is contracted out of the second level of state pension (known as the State Second Pension (or S2P)) and you will not get any additional pension from this, except for any contributions you may have made in another employment.
The Fellowship in Northern Ireland has the support and backing of the Department of Health, Social Services and Public Safety and all the various Health and Social Care bodies. Membership is open to all grades of staff in HSC services. The cost of membership is 6.00 per year which can be paid through a monthly deduction of 50p from your HSC Pension or by an annual payment. If you are interested in becoming a member, or would like some more information about the organisation further details can be found in the guide for pensioners and their dependants.
The HSC Pension Scheme is contracted-out of S2P under the 1995 Pensions Act. This means that the Scheme has to pass a scheme quality test set out in the Pensions Act. The Scheme actuary has confirmed that the Scheme has passed the test.
The Normal Pension Age is the age that you can retire from HSC employment and have your pension paid without reduction. The actual age that applies to you will depend on which section of the Scheme you are in and your status.
If you have two or more concurrent pensionable jobs in the HSC you are only required to retire for at least 24 hours in one of them provided that the remaining job(s) total 16 hours or less per week. However, you must cease to be pensionable in all your other job(s). If you are retired prematurely due to redundancy or interest of efficiency of the service, you should read the additional information in the Early Retirement section..
If you have Special Class status your normal pension age is 55. Further information on this can be found in the Special Class Status factsheet available in the scheme factsheets section of the website.
The maximum pension membership is 45 years. If you reach 45 years membership before your normal pension age your benefits will be deferred and paid to you when you choose to retire.Late Retirement
If you remain in employment after the Normal Pension Age, you may continue to earn benefits as long as you stay in the Scheme, up to age 75 (65 if you have Special Class Status) or until you reach 45 years Scheme membership. Your pension benefits will be based on your pensionable pay and membership when you do eventually retire. At age 75 you become entitled to your benefits without having to have a break in your employment.
At Retirement age you will need to complete the Preserved Benefit application form to claim your HSC Scheme Retirement Benefits, Form should be completed and forwarded to HSC Pension Service three months before the start date for payment of benefits.
For these members, benefits are normally payable at age 60 on age retirement grounds. From 30 June 2000 a new facility was introduced that allows members who leave the Scheme, on or after that date with deferred benefits, to claim them at any point between age 50 and 60 with an actuarial reduction. This is known as Early Payment of Preserved Benefits (EPPB).
In addition, a deferred member must not be in HSC work at the time of claiming the benefits. If they are still working but not paying pension contributions they need to take the 24-hour break from their employment.
Consequently, if the early retirement costs are to be met by an actuarial reduction, the reduced pension must be at least equal to, or better than, the Statutory Standard (previously the GMP), as required under Social Security legislation.
It provides an annual pension of 1/80
the of the best of the last 3 years pensionable pay for each year and part year of reckonable membership, plus a lump sum equal to three times the annual pension. However there are three exceptions where the lump sum will be lower.
If a former member approaches you about a claim for payment of actuarially reduced deferred benefits, please ask them to write directly to HSC Pension Service, giving their personal details, National Insurance number and the date they are thinking of taking their benefits.
HSC Pension Service will then apply the GMP test, and if the criteria are met, will respond by providing the member with an estimate of the basic deferred benefits and the actuarially reduced amounts for them to consider.
Members who have this type of mixed employment will have additional calculations applied to their pension records to ensure that the most favourable benefits allowed by the flexibility rules are obtained for them.
If you are in good health you can choose to allocate (give up) part of your own pension to provide a bigger pension for any dependant on your death. This can be to a spouse, civil partner, qualifying partner, or child. The nomination must be made before you retire and you cannot reverse this decision once made. More Information can be found in the Allocation tab below.
If you retire with Age, Voluntary Early Retirement or Deferred Benefits and work in the HSC for more than 16 hours a week within one calendar month of retirement, your pension will be suspended from the day the work begins. You will be able to keep your lump sum.
If you are in receipt of a Tier 2 pension and become re-employed anywhere, including outside the HSC, you should also read the Returning to Work with a Tier 2 Ill-Health Pension section. This gives further details of the effects of working after retirement.
In the case of type 6 pensions, abatement applies where the earnings from re-employment plus the gross annual pension exceeds the earnings before retirement. The reduction can be up to the total value of the annual pension and will continue until the pensioner reaches age 60 or the earnings from re-employment reduce sufficiently.
The previous abatement provisions apply up to age 60 and require that the pension amount is reduced where the new earnings from re-employment plus the gross annual pension exceeds the earnings before retirement. The reduction can be up to the total of the annual pension and continue until the pensioner reaches age 60 or the earnings from re-employment reduce sufficiently.
There is no provision within the 2008 Section of the HSC Pension Scheme to suspend payment of benefits following a return to work after retirement. However, abatement does apply to pensioners who return (or continue working) in the NHS before age 65 and are in receipt of one of the following pensions:
If you can satisfy certain continuity of employment or Scheme membership conditions, you can choose to have your benefits calculated by reference to transitional protection rules, which are explained in this section.
If this applies to you, you should consider your options carefully, because once you have made your choice your cannot change your mind. Your employer will provide you with quotations of your entitlements to help you decide.
The value of the enhancement at 30 September 2006 is then reduced as time goes by, until it is extinguished where the redundancy date is 30 September 2011. Your employer will provide you with an estimate of this calculation.
If you have to retire early because of redundancy and you choose to receive benefits under the Transitional Protection arrangements you will normally be entitled to a lump sum payment from your employer but this will be calculated under the old severance pay rules. Your employer can tell you more about this.
If you qualify for Transitional Protection and will be retiring early because of redundancy, your employer will arrange for you to receive an estimate of the benefits available under each set of rules and you may then choose which method is used to pay your pension benefits.
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