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Document I am a Practitioner without Full Protection, how will the Flexibility Value Earnings Credit work?

There are no Practitioner flexibilities in the 2015 Scheme. However, 1995/2008 Practitioners moving to the 2015 Scheme will have their ‘flexibility’ rights protected up to the point of joining the 2015 Scheme; i.e. 01/04/2015 or later for tapered members.

Upon moving to the 2015 Scheme the value of the Practitioner benefits you have already accrued in the 1995/2008 Sections are protected by continuing to apply the dynamising factors up to the last day of pensionable service.

The Flexibility Value Earnings Credit (FVEC) is a figure (or credit) that represents the value of the best ‘flexibilities’ pension up to the transition date. The FVEC is up-rated annually by a GAD (Government Actuary's Department) factor from the transition date (i.e. 01/04/2015) up to the last day of pensionable service. If the member has a break in 2015 membership exceeding five years the FVEC is uprated to the point when the member has the break.

The GAD factor is expected to be higher than the standard dynamising factor of CPI + 1.5%.

At a pension event, e.g. retirement or transfer out the 1995/2008 pre-transition date Officer pension will be the higher of;
  • A separate Officer pension (excluding mandatory converted Officer), or

  • The FVEC which is credited in the first year of joining the 2015 and revalued up to the last day of pensionable service (or earlier if there is a break of more than five years) by a unique GAD factor.
In summary the FVEC only applies to Practitioners and provides a pension in respect of any Officer pensionable service prior to the transition date.
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no protection, flexibility, value earnings credit

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