Step Down
A new feature of the NHS Pension Scheme (Amended April 2008) supports members wishing to 'step down' to a less demanding job, involving a pay reduction of least 10%, in the run up to retirement. The arrangement allows them to protect their higher rate of pay of for the purposes of their pension when they retire .
Effectively, the pension the member has already earned before the step-down will be frozen on the higher pensionable pay. A second pension, based on the member’s stepped down pay will be started. The frozen pension will also be kept up to date with cost of living increases. On retirement, both pensions will be added together.
Members who want this to happen must make a request in writing to their NHS employer or NHS Pensions within three months of their pay going down.
They must also
- have reached age 50
- have at least 2 years pensionable service
- confirm that the reduction will be for at least 12 months
- have not previously protected their pay using this option