More than 2,000 GPs have failed to claim their NHS pension payments in time, according to new data from the NHS Business Services Authority (NHSBSA).
New analysis of FOI data from NHSBSA, gathered by wealth management business Quilter, found that 209,553 members of the NHS pension scheme failed to claim pension payments due to a lack of awareness of pension scheme changes.
Of these, 2,296 were GPs who passed normal pension age without taking their NHS pension benefits, which will be lost as they are not typically backdated.
Last year, the Department of Health and Social Care introduced changes to retirement flexibilities which enable members to claim up to 100% of their benefits (under the 1995 regulations) while continuing to work and accrue further pension (under the 2015 regulations).
The 1995 section has a normal pension age of 60, meaning that at age 60 doctors can draw their pension and lump sum benefits from this section without any reduction, while the 2015 scheme has a normal pension age linked to an individual’s state pension age, or age 65 if that is later.
Quilter pointed out that the changes introduced last year mean that there are now ‘very few reasons’ for those eligible NHS pension members not to take their 1995 section benefits at normal pension age and warned that members can effectively lose 1995 section pension payments if they do not claim it at normal pension age.
According to Quilter, this is a ‘relatively new issue’ and not all members understand the rule changes or how they can benefit, with a ‘significant’ number of members missing out on pension benefit payments.
Quilter’s NHS pension specialist Graham Crossley said: ‘For GPs, there are 2,296 that have passed normal pension age without taking their NHS pension benefits.
‘This is surprising as, in the main, GPs have some of the best flexibility to take their NHS pension benefits and carry on working via retire and return, without needing to get anyone else’s authority aside from what’s agreed in their partnership agreements.
‘It is also worth noting that GP pensions continue to benefit from increases of CPI+1.5%, but I would urge all who have reached normal pension age to seek professional advice.’
He added that GP practices should also take note of the number of nurses and others who are missing out on their pension benefits.
He said: ‘As a GP practice employees many nurses and other staff, they have the opportunity to make partial retirement easier for their staff.
‘I would urge all GP practices to review the NHS Employers’ guide to partial retirement to ensure they are aware of all the ways they can support their staff through partial retirement, potentially without reducing their hours.’
The data
- There are 143,632 members of the NHS pension who are 60 years old or older and have not yet claimed their benefits from the 1995 section, even though they have reached the normal pension age of 60
- Similarly, 65,921 members are 55 or older and haven’t claimed their benefits from the 1995 section, despite reaching the normal pension age of 55
- In total, 209,553 members are ‘potentially missing out on money every month’
Source: Quilter
Mr Crossley also said that it is worth noting that individual circumstances will have a bearing, and there will be some 1995 section members who would benefit from not taking their 1995 section benefits at normal pension age, particularly if they are due a significant increase in pensionable pay.
Quilter also called on the DHSC to ensure ‘increased awareness’ of the recent changes to retirement flexibilities in the 1995 section that could ‘significantly’ help members.
Last month, experts warned that thousands of NHS pension members affected by an age discrimination could face ‘significant costs’ as part of the McCloud remedy.
So basically the younger nhs workers are paying for he 1995 pensioners. Its not fair and its not acceptable that younger NHS workers on low income will pay for the high earning pensioners in their fifties .
It has always been the case that pensions of any kind depend for their value on the economic activity of the next generation. Actually it’s true of any investment. One of the reasons for having kids. Imagine a world where suddenly no one had children. Within 25 years your pensions would all be worthless and the economy would grind to a halt. Society then falls apart and not long after we are all dead.
LTA
I don’t understand what the author means by “Similarly, 65,921 members are 55 or older and haven’t claimed their benefits from the 1995 section, despite reaching the normal pension age of 55”
As i understand it- normal pension age for people on 1995 scheme is 60 years.
can anyone explain please
Charlie Massey (now CEO GMC) in his first career as a civil servant was senior advisor on the Post Office and ministerial chief advisor on the junior Doctors’ strike. But hew was also chief architect for public pension reform. FYI
Charlie Massey as a civil servant (before he accepted appointment as CEO of GMC), was chief advisor on the Post Office, Junior Doctors’ strike and architect of Public Pension Reform. FYI.
Sorry but is this the same Charlie Massey who was Chief Engineer of the Titanic, or the managing director of the Chernobyl plant, or perhaps the CEO of the Deepwater oil rig??
no wonder its so creaky
Win Win
There is no linkage between money paid in and money paid out. There is no pension fund, pensions are paid from general taxation. If everyone currently paying into the NHS pension stopped paying today, pensions would still be paid.
Your wages, your pension – both are paid by taxpayers.