When you are probably aware, the brand new NHS Pension Scheme goes live from April 1st 2008.This scheme is automatic for brand new members from that date, and a major change here’s the normal retirement is 65, not 60.However, the existing scheme also alterations in some key areas for those of you who choose to stay as you are.We concentrate here on these changes as the majority of our clients are in their 40′s and 50′s and are almost sure to remain in the current scheme. You’ll automatically become people in the updated existing scheme from April 1st next year.So how are you going to suffer?Well, there are quite a few changes, so we begin using the bad news! The flat 6% cost will now be tiered, depending on your wages:As much as £19,165 6%Up to £63,416 6.5%Up to £99,999 7.5%£100,000 plus 8.5%As you can see, if you earn more you have to pay more. In case your NHS income is, say, £90,000, you are currently paying £5,400. From April it will likely be £6,020, although this is gross and also you get tax relief on these figures (meaning like a higher rate taxpayer you’d pay £3,612 on the latter figure).The good thing is that you will support the normal retirement of 60, or age 55 in certain special cases for example Mental Health Officers.Other key changes are:The earnings cap for hospital based individuals is being abolished. So, although higher earners will be paying more as above, you will take advantage of a real pension increase if your NHS earnings are Air Max 2011 above £112,800 pa. (e.g. for those who have a merit award).The overall Dental Practitioner earnings cap may also be removed – circa £110,000. So for those of you earning a lot more than this figure, from 2008 you will benefit from increases to your pension.Also with this group, and also for General Doctors, your pensionable earnings revaluation on dynamisation will be based upon the list price index plus 1.5%, rather than the increases in each practitioner profession.A key change for benefits to partners on death are also announced. Qualifying partners now include someone you’ve nominated who you come with an exclusive and long-term committed relationship with for at least two years and who’s financially dependant or inter-dependant. In addition, if this type of partner were to remarry or cohabit, they keep their survivor pension (an enormous benefit).It should be mentioned here the ill health retirement rules are being reviewed seperately, which review is due to report early the coming year. Because these are important benefits, we will update you if you find more news.Buying extra pension benefits has also got new rules, one of these bringing the NHS scheme in line Air Max 2011 Shoes with the overall ‘A DAY’ pension changes that were introduced in April 2006. This means you can contribute as much as you earn. Secondly, the option of Added Years is being removed entirely – existing contacts will be honoured – (you must have the application in towards the end of March 2008 if you wish to make use of this route). The replacement is known as ‘buying additional pension, having a maximum of £5,000 per year.At retirement, you can take your pension and lump sum as usual, but there’s a choice to commute a few of the pension to give more lump sum. Because this lump sum payment is tax-free, this could prove popular. For example, for somebody with around 36 years service as well as an NHS salary of £100,000 pa:Typical pension/lump sum – £45,500/£136,500Option pension/lump sum – £36,500/£244,000Finally, now you can work on to Cheap Nike Air Max 2011 age 75. Please apply early to avoid the rush We have not covered the various changes here. Make sure you are conscious of how these changes affect your benefits.The Financial Tips Bottom Line:As the NHS Pension Scheme may be the foundation for many dentists and doctors, ensure you are up to date with these changes, and understand what they mean to you.You will receive information packs in the NHS Pension Agency together with your pay advice in due course.ACTION POINTFor detailed information from the changes go to: