Clueless couple looking at Pensions...

K

kevgaa

Registered User
Messages
32
Hi,

I'm not sure if this is the right forum and we acknowledge we will probably need to see a professional so any recommendations via DM are welcome, but just trying to get some direction.

We are a coupe 48 and 50 and are looking at Pensions now and basically our knowledge dosent go much further than we have one and are paying into them etc...

The questions today will focus on my wife

Currently working for HSE since 1999 worked full time up to 5 years ago currently on reduced hours of 27.5 hours a week instead of 35 a week. I suppose first question is
1). How do you calculate her potential lump sum and Pension?
2). Will reduced hours impact this and is her pension based on her actual salary or reduced hours salary?
3|) Is there someone in the HSE she can contact to get information on her pension etc?

The last bombshell she landed on me today when discussing this was that she worked for the NHS for just over 2 years after qualifying in the UK between 1996 and 1998 before she went travelling. Could this entitle her to a UK pension?

Thanks
 
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A situation not too dissimilar to my own wife's. To calculate lump sum and pension you need to figure out how many years reckonable service she has. Looks like 20 years full-time and 5 years at approx 80% which equates to about 24 years so far. Since she is pre-2004 pension then she can retire at 60 is she wishes. I will assume she is 48, so with another 12 years at 80% service then she should have another approx 10 years at age reckon able service at 60 or (if she stays to 65) then she would have another approx 13.5 years. Therefore, at 60 she could have a total of 34 years service which means she would have a pension of approx 34/80th of her final salary (average of last 3 years assuming no promotions during this period) per annum (this includes the state pension). Lump sum would be 3 times the annual pension. For example if she retired at 60 on 80K then her annual pension would be approx 34k and her lump sum would be 102k. If retiring at 65 then annual pension of approx 37.5k and lump sum of 112.5k. As you can see, reduced hours only effects reckonable years and not final salary calculation. Good luck with contacting someone in the HSE they are extremely slow.

Regarding the UK training, then at the very least she is due a small NHS pension but she may be entitled to 2/35ths of the UK State pension. There is a great key post by Dannyboy explaining everything you need to know about possibly adding to the UK State pension by voluntary contributions, although I think a minimum of 3 years national insurance stamps may be required to pay voluntary contributions.
 
Re the HSE salary are you sure it’s the final 3 years used for calculations? Is it not the best 3 of the previous 10 ? In which case would she be better going back full time at some stage prior to 60 ? Open to correction on the 3 year rule. Or is it because she is pre 2004 ?
 
Actually I am wrong, I just checked the HSE pensions handbook (https://assets.hse.ie/media/documents/Superannuation_Scheme_Information_Booklet_V1.2_Oct_23.pdf) it is final salary on last day of service unless there has been a promotion in past 3 years. Pension in based on full-time equivalent so no need to work full-time just before retiring.
 

Have you tried the HSE Pension Estimator.
She can put her details in and it will give an estimate of pension and lump sum entitlements.

Pension estimate

You can calculate an estimate of your pension by filling out the pension benefit estimate application form. The pension estimate is not applicable to members of the Single Public Service Pension Scheme (Single Scheme).
healthservice.hse.ie

If she worked more than two years in the NHS, she will be entitled to a small public sector pension, depending on which scheme she is in.

Contact NHS Pensions - members | NHSBSA

Contact information for NHS Pensions for members
www.nhsbsa.nhs.uk


She might also be entitled to a UK State pension, if she has three years of National Insurance records in the UK. She will need to make voluntary contributions, up to 10 years, to get the minimum pension payable.

 
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