buying back years-rules

Discussion in 'Public sector pensions' started by leanbh, Sep 27, 2016.

  1. leanbh

    leanbh Frequent Poster

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    104
    My brother is a civil servant and has just had a diagnosis of serious illness. He has a couple of years civil service employment (not sure think 7) where he still works and he now wants to buy back years.
    He has a few questions
    1) he has taken not more than roughly 10 days sick in the last five years. Can he buy back years while on paid sick leave by periodic contributions, including half pay if he starts contributions now while not on sick leave ?
    the rules just say no purchase while on sick leave does this include paid sick leave.
    2) if he has to give up work (and we don't know for sure yet) is there any way he can continue to buy back years by periodic contribution.
    he's up in a heap at the moment so I'm looking into it for him. He has no spouse or children (don't know if that's relevant)
     
  2. POC

    POC Frequent Poster

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    51
    Does he have many years to buy back? Are you sure he wants to 'buy back' years, as that is different to buying extra years through Notional payments.
    I was able to buy back some years. Once for a period of temporary service when I wasn't paying superannuation. And once for a period of part-time service when I wasn't eligible to pay superannuation - but the rules changed so I could buy it back.
     
  3. leanbh

    leanbh Frequent Poster

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    104
    I didn't know there was a difference. He has been working a 4 day week for the past 3 years and before that he was full time. Is it not the same cost to buy say 3 years under the buy back or buy notional service? Does it not amount to the same thing if he buys them now? I wonder myself if there is even any point to buying years if he has to go on ill health retirement anyway?
     
  4. Leper

    Leper Frequent Poster

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    I am not au-fait with the whole situation regarding buying back service. However, I do know it is expensive to do so and payments include compound interest which is crippling. Another thing, if you brother is retiring on grounds of ill health he is be entitled to added service as a result (calculable on all his "pay service" which includes his Half-Pay periods. The Superannuation (or Pensions) Section of where your brother is employed will be able to inform him of all his entitlements. Therefore, I would advise him to contact that section asap where he will acquire accurate information and probably fairly fast.
     
  5. POC

    POC Frequent Poster

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    Sorry if I caused confusion. Purchase of Notional Service seems to be commonly called 'buying back' years. However it is also possible to Purchase Previous Service.
    As far as I recall, I had to Purchase Previous Service before I was able to Purchase Notional Service.
     
  6. leanbh

    leanbh Frequent Poster

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    104
    Thanks for responses. Just a point , Leper.
    its way cheaper buying back years /buying notional service than having a private pension. And the cost can be set against tax.
    I'm also a civil servant so I think I'll talk to my own hr as he's not in a fit state.
    I just can't find specific rules round buying service while on paid sick leave.