If you’re an active member in the Scheme on the date of redundancy, you may be able to claim your pension early on redundancy grounds. This includes voluntary redundancy.
To be eligible you must have:
- at least 2 years qualifying membership within the Scheme
- 2 years continuous service verified by your employer
- reached your minimum pension age of the Scheme you’re a member of.
There are 3 options available on redundancy.
Defer your pension
You take the redundancy payment from your employer and leave your pension deferred in the Scheme.
Retire on the grounds of redundancy
You may be able to claim your NHS pension benefits without any reduction because of early payment. The cost of your pension not being reduced must be met using your redundancy payment. This is known as the capitalisation cost.
If you have pension benefits in the 1995 Section and continue to hold Special Class (SC) or Mental Health Officer (MHO) status, the capitalisation cost for the 1995 Section pension benefits is worked out using a Normal Pension Age (NPA) of 55.
The capitalised cost for any pension benefits in the 2015 Scheme is worked out using the NPA for this Scheme. This is either your state pension age or age 65 if this is later.
If the capitalisation cost is higher than the redundancy payment, you must must meet the difference in cost. This is for those subject to ‘Agenda for Change’ terms and conditions.
You’ll be able to pay some or all of the remaining cost. If you only pay some, your benefits will be reduced by a lower amount.
Your employer will continue to meet the remainder of the cost for those:
- not subject to ‘Agenda for Change’ terms and conditions
- who are made redundant by a Welsh Health Authority.
If the capitalisation cost is less than the redundancy payment, you’ll receive the remainder of the redundancy payment.
Retire with a reduced pension
You choose to claim your pension as an early retirement. Your pension will be reduced depending on your age.
This does not affect your redundancy payment.
If you’re a SC or MHO member, the reduction is worked out on an NPA of 60.