Business Services Organisation
Features and Benefits of your Pension Scheme
Feature or Benefit |
Practitioners
|
All HSC Workers and Approved Employer Staff for information only |
|
| Scheme | 1995 | 2008 | 2015 |
| Member Contributions |
Tiered Contribution Rates |
||
| Type of Scheme | Earnings Accrual. The final value of pensionable earnings after adding all years’ earnings and applying revaluation factors. |
Earnings Accrual. The final value of pensionable earnings after adding all years’ earnings and applying revaluation factors.
|
Career Average Re-valued Earnings based on a proportion of pensionable earnings in each year of membership. |
| Pension | A pension based on 1.4% of total up-rated earnings. | A pension based on 1.87% of total up-rated earnings. | A pension worth 1/54th of each years’ pensionable earnings, re-valued at the beginning of each following scheme year in line with the Consumer Price Index plus 1.5% whilst in active membership. |
| Retirement Lump Sum | 3 x pension. Option to exchange part of pension for more cash up to 25% of capital value. | Option to exchange pension for a lump sum, up to 25% of capital value. Certain members may have a compulsory amount of lump sum. | Option to exchange part of pension for a lump sum up to 25% of capital value. |
| Normal Pension Age | 60 | 65 | Equal to an individuals’ State Pension age. |
| Maximum Age | 75 | 75 | 75 |
|
Maximum Membership |
45 years |
45 years |
No limit |
| Minimum Pension Age | Age 50 if joined pre 06/04/2006 and not had a break of 5 years or more, otherwise Age 55. | Age 55 | Age 55 |
| Actuarially Reduced Early Retirement | Yes | Yes | Yes |
| Late Retirement | No late retirement factors applied. | Late retirement factors applied to pension earned before Age 65 | Late retirement factors applied to all pension earned until retirement. |
| Pensionable Re-employment following payment of pension | Only available to eligible members who retire from active membership following ill health retirement who re-join prior to age 50. | Yes if eligible | Yes if eligible |
| Partial Retirement | No | Yes | Yes |
| Ill Health Tier 1 | Accrued benefits paid without reduction | Accrued benefits paid without reduction | Accrued pension paid without reduction |
| Ill Health Tier 2 | Tier 1 plus an enhancement of 2/3rds of prospective membership to NPA | Tier 1 plus an enhancement of 2/3rds of prospective membership to NPA | Tier 1 plus an enhancement of 1/2 of prospective pension to NPA |
| Increasing your Pension | Purchase of Additional Pension in units of £250 | Purchase of Additional Pension in units of £250 | Purchase of Additional Pension in units of £250 |