NHS lease scheme

[Denno B]

gangzoom said:

Take the gross figure per month (not the net figure), x12 for yearly cost. Divide by 54 and its the annual reduction in pension per year. Than multiply by 20 to give you roughly idea of cost of pension drop for 1 year of the lease.

You should really also add on the guaranteed 1.5% above inflation annual growth on the pension value. So if 25 years left to retirement x that value by 1.45, very roughly that will give you true idea of pension reduction excluding inflation but including guaranteed pension growth till retirement age.

Remeber than to multiply by number of years the deal runs for. 1-2 years the numbers look OK, but if you end up in the scheme for 5-10 years its a huge drop in the pension pay out.

Edited by gangzoom on Wednesday 29th January 15:59

The figure she had from payroll was £12.5k pension reduction. We are just trying to work out how much a month we could add to her pension to off set this, someone mentioned approximately £100 per month should do.

[gangzoom]

Denno B said:

The figure she had from payroll was £12.5k pension reduction. We are just trying to work out how much a month we could add to her pension to off set this, someone mentioned approximately £100 per month should do.

If you are working on a basis of 3% interest guaranteed every year for 25 years, you need a starting pot of £6000 to reach £12,500 over that time period.

If the car is a three year deal you need to put in £166/month in-order to generate a pot of £6000 to start off with inorder to reach £12,500 by the end of 25 years.

https://www.thecalculatorsite.com/finance/calculat...


The beauty of the NHS pension scheme is that the employee has to do literally nothing, and the pension you collect at the end is hard to beat compared to any other scheme. Even without my old pre-2015 scheme contributions, and if I was to start a fresh NHS pension today, without taking into inflation when I retire I will have an annual pension of well over £40K. That's partly because my salary is already high at the start of the new CARE scheme, but still demonstrates how good the NHS pension is. Am not sure how much monthly contribution you need to add into a private pot if you want to retire on a pension of £40K with 30 years to build up the fund, but am pretty sure it will be a nuts value.

Edited by gangzoom on Wednesday 29th January 18:33

[Phatbenito]

dave_s13 said:

Here's a snippet from our "ask the ceo" bit of the intranet




It links to here
https://www.nhsemployers.org/tchandbook/annex-11-t...

But that uses the term "lease vehicles".

The term "salary sacrifice" isn't used anywhere. So, I wonder if our trust should be paying salary sacrifice users the 0.56p rate for the 1st 3.5k miles?
As far as I know at the moment the mileage rate for salary sacrifice cars is as above (.26p).......I'm just in the process of finding out for sure.

Hi Dave,

Did you manage to clarify the mileage situation at your trust?

[Chris32345]

gangzoom said:

If you are working on a basis of 3% interest guaranteed every year for 25 years, you need a starting pot of £6000 to reach £12,500 over that time period.

If the car is a three year deal you need to put in £166/month in-order to generate a pot of £6000 to start off with inorder to reach £12,500 by the end of 25 years.

https://www.thecalculatorsite.com/finance/calculat...


The beauty of the NHS pension scheme is that the employee has to do literally nothing, and the pension you collect at the end is hard to beat compared to any other scheme. Even without my old pre-2015 scheme contributions, and if I was to start a fresh NHS pension today, without taking into inflation when I retire I will have an annual pension of well over £40K. That's partly because my salary is already high at the start of the new CARE scheme, but still demonstrates how good the NHS pension is. Am not sure how much monthly contribution you need to add into a private pot if you want to retire on a pension of £40K with 30 years to build up the fund, but am pretty sure it will be a nuts value.

Edited by gangzoom on Wednesday 29th January 18:33

For £40k a year something stupid

[dave_s13]

Phatbenito said:

dave_s13 said:

Here's a snippet from our "ask the ceo" bit of the intranet




It links to here
https://www.nhsemployers.org/tchandbook/annex-11-t...

But that uses the term "lease vehicles".

The term "salary sacrifice" isn't used anywhere. So, I wonder if our trust should be paying salary sacrifice users the 0.56p rate for the 1st 3.5k miles?
As far as I know at the moment the mileage rate for salary sacrifice cars is as above (.26p).......I'm just in the process of finding out for sure.

Hi Dave,

Did you manage to clarify the mileage situation at your trust?

I think each trust can make their own arrangements. And ours is set 0.26p by the look of it.

[garpat32]

dave_s13 said:

Phatbenito said:

dave_s13 said:

Here's a snippet from our "ask the ceo" bit of the intranet




It links to here
https://www.nhsemployers.org/tchandbook/annex-11-t...

But that uses the term "lease vehicles".

The term "salary sacrifice" isn't used anywhere. So, I wonder if our trust should be paying salary sacrifice users the 0.56p rate for the 1st 3.5k miles?
As far as I know at the moment the mileage rate for salary sacrifice cars is as above (.26p).......I'm just in the process of finding out for sure.

Hi Dave,

Did you manage to clarify the mileage situation at your trust?

I think each trust can make their own arrangements. And ours is set 0.26p by the look of it.

Yes, it's definitely the case that each trust or organisation can set their own arrangements, or they can use the default rates in the NHS guidelines.

I have clarified, yet again, with our HR and Payroll and both tell me the same.

Cheers.

[Downward]

sawman said:

pavarotti1980 said:

I dont think there is even a calculator to work out what your potential pension will be never mind the implications of reduced contributions.

Happy to be corrected but there is very little on ESR to help

You are right, the only info that you can really get about pension is the annual TRS statement, but you cant use this to model changes, i suppose you could see how the forecast changes after you have had a lease car for a bit, bit late by then i guess!.
I am no longer contributing to the pension so this aspect doesn't apply to me, thanks to this thread i am now thinking about spending a couple of years with an electric audi!

There used to be but it’s dissapeared

[sawman]

anyone had any issues getting a test drive, when sourcing car from fleet solutions ?

I bobbed into the audi garage locally, to have a snout at the e tron, after I mentioned that we were probably looking at a fllet solutions deal, the sales guy indicated that the dealer in the next town might be able to provide a test drive. Wife thought the etron might be bigger than she would be happy driving about, so I didn't press it. but on reflection it might be worth at least taking one for a spin

[ahas]

Just jumping into this thread so apologies if already been mentioned.

I too saw the e-tron, and at £250 is a corker of a deal! The model 3 popped up for a few days and that £349

RE test drive, pop into an audi dealer, don't mention NHS fleet and just take for a spin and at the end just tell them you're not interested or you're testing other cars before you decide.

I've ordered the e-golf and I too popped into my local dealer before ordering, the dealership pulled it out get it ready to drive etc and as soon as I mentioned NHS fleet they just made excuses not to let me test drive it.
I think they know its a dead end sales pitch.

[Gunslinger18]

ahas said:

Just jumping into this thread so apologies if already been mentioned.

I too saw the e-tron, and at £250 is a corker of a deal! The model 3 popped up for a few days and that £349

RE test drive, pop into an audi dealer, don't mention NHS fleet and just take for a spin and at the end just tell them you're not interested or you're testing other cars before you decide.

I've ordered the e-golf and I too popped into my local dealer before ordering, the dealership pulled it out get it ready to drive etc and as soon as I mentioned NHS fleet they just made excuses not to let me test drive it.
I think they know its a dead end sales pitch.

Typical salesmen. On another note I seen an etron today BIG car

[russyj]

Hi,

With these deals what’s the position on gap insurance? Given it’s all in I would figure it’s their problem if their insurance provider doesn’t pay out sufficiently?

Thanks!

[pavarotti1980]

russyj said:

Hi,

With these deals what’s the position on gap insurance? Given it’s all in I would figure it’s their problem if their insurance provider doesn’t pay out sufficiently?

Thanks!

No Gap insurance required

[Gunslinger18]

Has anybody FTK on an EV yet?

[garpat32]

Gunslinger18 said:

Has anybody FTK on an EV yet?

I have the Ioniq on it way (mid April), I know of two people getting the Tesla deal, another the iPace and yet another the Merc. Thats just in our office (around 200 staff)

[Curley89]

Is everyone still seeing the e-tron offer or is it specific to each Trust?

My partners Trust have been talking about bringing back the lease benefit for a couple of months. I managed to log in with her ESR number last week after reading this thread but the e-tron was coming back at £747.99 a month after adding the home charger. I just assumed she couldn’t access the offers mentioned in here yet as her Trust wasn’t enrolled.

She had an email today stating she can now ‘express interest’ with NHS Fleet Solutions but it’s still coming back at £747.99.

[sawman]

Curley89 said:

Is everyone still seeing the e-tron offer or is it specific to each Trust?

My partners Trust have been talking about bringing back the lease benefit for a couple of months. I managed to log in with her ESR number last week after reading this thread but the e-tron was coming back at £747.99 a month after adding the home charger. I just assumed she couldn’t access the offers mentioned in here yet as her Trust wasn’t enrolled.

She had an email today stating she can now ‘express interest’ with NHS Fleet Solutions but it’s still coming back at £747.99.

That will be the salary deduction cost. Ie from net pay, without using salary sacrifice. Fleet solutions normally give both salary sacrifice cost and salary deduction cost - for high BIK cars they are remarkably similar

[Curley89]

sawman said:

That will be the salary deduction cost. Ie from net pay, without using salary sacrifice. Fleet solutions normally give both salary sacrifice cost and salary deduction cost - for high BIK cars they are remarkably similar

She only gets the salary deduction option on the e-tron. She does get the salary sacrifice options on other cars (A3 for example). Could this be due to her salary band?

[pavarotti1980]

Curley89 said:

She only gets the salary deduction option on the e-tron. She does get the salary sacrifice options on other cars (A3 for example). Could this be due to her salary band?

yes if it drops you below minimum wage the only option you get is the deduction one. We worked out in the office you have to be band 4 (with 3 years service) to get the benefit. Anything below that point and it would only give the option of salary deduction.

[Curley89]

pavarotti1980 said:

yes if it drops you below minimum wage the only option you get is the deduction one. We worked out in the office you have to be band 4 (with 3 years service) to get the benefit. Anything below that point and it would only give the option of salary deduction.

If I increase her salary by £97 she gets the salary sacrifice option Is this set in stone? I’d be giving her the money for the car.

Edited by Curley89 on Wednesday 12th February 21:40

[pavarotti1980]

Curley89 said:

If I increase her salary by £97 she gets the salary sacrifice option Is this set in stone? I’d be giving her the money for the car.

Edited by Curley89 on Wednesday 12th February 21:40

yes its a line in the sand. Legally you cant be paid under the minimum wage