Thanks everyone,for the replies. Ill only have 33 years by age 60,just I either want to retire then or do a 3 day week for a few years.
Isle Of Man,thank you-this is what is causing confusion. I have heard of colleagues being on 3 or 4 day weeks for years and then they go back up to full week about a year or two before they retire and supposedly to do with making sure they get the lump sum on a five day week.Ill check it out further.
This might be the lump sum available to you on your taxable income, rather than your pensionable income.
Your pensionable income is fixed, but your taxable income can vary.
For example
Pensionable HSE income is 60k.
Therefore , with 40 years service, tax free lump sum from HSE is 90k.
However, a lot of nurses work nights, weekends, Public Holidays and this produces premium payments which are not part of the HSE reckonable income for pension purposes. They are, though, allowable for a private AVC based lump sum. A lot of people work all the hours they can, to boost this sum..
So for example, if you work loads of nights, Sundays etc, you might increase that 60k to 80k.
That sum (80k) is then allowable as your tax free lump sum
80 x 1.5 is 120k. Your HSE lump sum is 90k, so you can get another 30k, tax free, by making contributions to a private AVC.
It only works if you go full time, because you have to push your taxable income above your reckonable income. You can pick the three years ( in the final 10) with the highest taxable income and take the average.