If you a member of the 1995 Section of the NHS Pension Scheme, you can now take your pension benefits while retaining your current NHS role.

New details on the application process and the criteria needed to apply has just been released – although some of the key tools have been delayed.

The partial retirement option is already possible for pension benefits earned in the 2008 Section and 2015 Scheme but now applies to 1995 Section benefits too.

Doctors aged 55 and above, can choose to take between 20 and 100 per cent of their pension benefits in one or two payments – without having to leave work. However, those choosing this option, must reduce their pensionable pay by at least 10 per cent in the 12 months after drawdown.

In order to proceed with an application, you will need to complete a new document called a ‘Partial Retirement Supplementary Form’ which was published in July. There is also a new online ‘Partial Retirement Calculator’ to help plan next steps but this has not yet been released for use.

As with all NHS finance matters, the devil is in the detail and yet we are only just receiving some of the most important information on these flexibilities now.

The new application form was only published in summer which means it will be difficult for NHS Pensions to process in time for those wishing to start their flexible retirement this year. NHS Pensions has vowed to make quick progress with applications but standard retirement forms can take at least 3 months. The online tool designed to facilitate easier decision making is not yet ready but benefits will be backdated to 1st October if there are delays.

If you are considering taking this opportunity, you should discuss your options without delay. The McCloud remedy legislation has now been published and may have an impact on your decisions.

For detailed advice, call our NHS experts on 020 7636 7006.