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Document If I am a Special Class or Mental Health Officer (MHO) member, am I subject to abatement?

Yes, if you are a Special Class or Mental Health Officer (MHO) member planning to retire between the ages of 55 and 59, you will be subject to abatement.

If you are a Special Class or Mental Health Officer (MHO) member, abatement applies when your earnings from re-employment plus your gross annual pension exceed your earnings before retirement. In all cases, the gross pension amount used in the calculation is the amount of pension before reduction to pay for any optional bigger lump sum. The reduction can be up to the total value of your annual pension and will continue until you reach age 60 or the earnings from your re-employment reduce sufficiently.

An example of this: £10,000 (Earnings before retirement)
 
£5,000 (Earnings from re-employment) + £7,000 (gross annual pension) = £12,000 (This would mean that you have exceeded your earnings before retirement and therefore are subject to abatement).

If you had Special Class or MHO status but took retirement before 55 with an actuarial reduction your benefits would have been reduced using a Normal Pension Age (NPA) of 60 and therefore would not be subject to abatement if you return to NHS work.
 
If you had Special Class or MHO status but took retirement before 55 through ill health you would be subject to abatement under the ‘Returning to work following Ill Health Retirement’ rules.

For further information, please see the Working After Retirement section on our website.
 
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Special Class, MHO, Mental Health Officer, SC, abatement
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