Data obtained from the NHS Business Services Authority (NHSBSA) through a freedom of information request showed that 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 receiving their pension every month.
A good percentage of these NHS employees will be doctors who will have missed out on claiming their NHS pension payments due to a lack of awareness of changes in pension scheme rules. The data from NHSBSA also showed that 2,296 General Practitioners (GPs) have passed their normal pension age without claiming their benefits from the 1995 section of the NHS pension scheme, leading to the potential loss of these benefits since they are not typically backdated.
This issue has arisen following changes introduced by the Department of Health and Social Care last year, which allows NHS pension scheme 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 normal pension age for the 1995 section is 60, at which point benefits can be drawn without reduction. In contrast, the 2015 scheme has a normal pension age linked to an individual’s state pension age or 65, whichever is later.
Despite these changes offering increased flexibility, many doctors and other NHS staff members remain unaware of the new rules, resulting in significant numbers missing out on their entitled pension payments. The complexity of the NHS pension scheme and the administrative burden associated with claiming benefits can often deter members from taking action which can result in the loss of benefits.
The situation is compounded by the intricate process of navigating the pension scheme options, such as partial retirement or the “retire and rejoin” scheme, both of which require paperwork and approval from the employing trust. Chase de Vere Medical stress that despite these challenges, it is crucial for doctors and other NHS staff to seek professional advice to avoid losing out on their pension benefits.
To address this, there are calls for the Department of Health and Social Care to enhance efforts to increase awareness among NHS pension scheme members about the retirement flexibilities and the potential financial implications of not claiming their benefits on time. Employers are encouraged to support their staff by familiarising themselves with the NHS Employers’ guide to partial retirement, ensuring that their employees can benefit from the available retirement options without reducing their working hours.
Overall, the key takeaway is the need for increased awareness and proactive management of pension benefits among doctors and NHS staff, particularly those nearing the normal pension age, to avoid significant financial losses.
Chase de Vere Medical advise doctors to always seek expert guidance and independent financial advice when planning their retirement to ensure they were making the most of all opportunities and not missing out of any financial benefits.
The information contained within this article is for guidance only and does not constitute financial advice.
Content correct at time of writing.