Transcript OPEN FILE - NHS Employers

Choice 2
Information and actions for employers
Why Choice 2?
A key component of the new 2015 NHS Pension Scheme is a higher
normal pension age, equal to member’s state pension age, with
pension reduced if a member decides to retire earlier.
Had this information been available at the commencement of the
previous Choice exercise, some members may not have elected to
remain in the 1995 section.
This resulted in a decision, in the interests of fairness and members
making the most of their pre 2015 benefits, to provide those affected
with another opportunity to decide whether to move their 1995 section
membership to the 2008 section. This exercise is known as Choice 2.
Who is eligible for Choice 2?
To be eligible for Choice 2, a member must:
• Be a member of the 1995 section of the current scheme
• have tapered protection or no protection.
You will receive a list of eligible members in your organisation.
Eligible members
Members of the 1995 section of the
current NHS Pension Scheme
Tapered
protection
=
No protection
Approximately
500,000 members
What is protection?
• Members who were 10 years or less from their normal retirement
age at 1 April 2012 have full protection and will not move into the
new 2015 scheme.
• Members who were between 10 years and 13 years and 5 months
from their normal retirement age at 1 April 2012 will have tapered
protection under the new scheme arrangements and will move to
the new 2015 scheme at some point after 1 April 2015. The date
they move to the new scheme (the length of protection) depends on
their age at 1 April 2012.
• Members who were 13 years and 5 months or more from their
normal retirement age at 1 April 2012 have no protection and will
move to the new 2015 scheme on 1 April 2015.
How will Choice 2 be delivered?
• NHS Business Services Authority (NHSBSA) will produce
personalised letters for each eligible member
• During October and November 2014, the letters will be delivered to
employers to distribute to members
• Online calculators and examples will be made available to members
via the NHS Pensions website
• An online response form will be available on the NHS Pensions
website or hard copy via the helpline (further details tbc)
What do members need to do?
• Members will need to read their Choice 2 letter in full to understand
the implications for them
• They will be encouraged through their letters to make use of the
online calculators and examples
• If a member wants to move their benefits to the 2008 section, they
complete the online response form (on the NHSBSA website) or
request a hard copy from the helpline (further details tbc)
• The deadline for NHS Pensions to receive Choice 2 decisions will be
confirmed in due course
• Once a member has made a decision it cannot be changed
• Members who decide not to move do not need to do anything – they
will remain in the 1995 section by default
What do you need to do?
Plan now how you will ensure your staff receive their personalised
Choice 2 letters:
• you can choose to deliver these in the most effective way for your
organisation
• you must distribute the letters to all eligible members in order to
meet your Scheme Disclosure requirements
• you must deliver the letters to the members within four weeks of
receipt to ensure that eligible members have a three month
decision window.
What else do you need to do?
Think about how you will signpost your staff to additional
resources to support them through the decision making process
including:
• High level information via the NHS Pension Scheme:
Arrangements beyond 1 April 2015 section of the NHS Pensions
website
• Examples and calculators on the NHS Pensions website
(available nearer Choice 2)
• Dedicated member Choice 2 webpage on NHS Pensions website
(available nearer Choice 2)
• Dedicated member telephone helpline and email address for
queries (available nearer Choice 2).
Resources for employers
NHS Employers also has a range of Choice 2 resources:
• Our Choice 2 webpage will be updated regularly as information is
available
• We are hosting a webinar Choice 2 - making the most of pre-2015
benefits together with NHS Pensions on 3 September 2014. Read
more and book your place
• Our Choice 2 timeline is available to download and share. The
timeline highlights the key events for the Choice 2 exercise
• Copies of Choice 2 letters will be made available on the NHS
Pensions website nearer the start of the Choice 2 exercise
Choice 2 Timeline
Further information
The NHSBSA Choice 2 webpage
www.nhsbsa.nhs.uk/4606.aspx will be updated as and
when more information is available
Visit www.nhsemployers.org/choice2 for more information
on the Choice 2 exercise
You can email us at [email protected]