Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Travelling_shoes
    • By Travelling_shoes 5th Sep 17, 5:30 PM
    • 10Posts
    • 3Thanks
    Travelling_shoes
    Transfer or not to transfer NHS Pension
    • #1
    • 5th Sep 17, 5:30 PM
    Transfer or not to transfer NHS Pension 5th Sep 17 at 5:30 PM
    Hello,

    I am about to leave the NHS to go & work in education. I am a member of the NHS pension scheme (I've had a break in employment to study, so belong to the 1995 & 2015 schemes respectively) having worked from 2001-2002, then 2005 to the current day.

    In my new job, I will qualify for the Local Government Pension Scheme (LGPS).

    My question is, do I leave my NHS pension where it is, or do I transfer it across to the new scheme?

    Many thanks 😊
Page 1
    • atush
    • By atush 6th Sep 17, 3:09 PM
    • 16,333 Posts
    • 10,081 Thanks
    atush
    • #2
    • 6th Sep 17, 3:09 PM
    • #2
    • 6th Sep 17, 3:09 PM
    I dont hae a DB pension so take this with a grain of salt.

    AFAIK, the LGPS is a funded scheme, and the NHS is not. So, should you want to later on, you could possibly transfer the LGPS to a DC pension and use flex Drawdown if you wanted. You cant with NHS.

    Plus, you can use LGPS AVCs to fund your TFLS, w/o reducing your DB pension accordingly.
    • Spreadsheet Addict
    • By Spreadsheet Addict 6th Sep 17, 4:19 PM
    • 4 Posts
    • 4 Thanks
    Spreadsheet Addict
    • #3
    • 6th Sep 17, 4:19 PM
    Transfer NHS pension to LGPS? I didn't.
    • #3
    • 6th Sep 17, 4:19 PM
    Hello,

    I am about to leave the NHS to go & work in education. I am a member of the NHS pension scheme (I've had a break in employment to study, so belong to the 1995 & 2015 schemes respectively) having worked from 2001-2002, then 2005 to the current day.

    In my new job, I will qualify for the Local Government Pension Scheme (LGPS).

    My question is, do I leave my NHS pension where it is, or do I transfer it across to the new scheme?

    Many thanks 😊
    Originally posted by Travelling_shoes
    I left the NHS in 2010 and chose not to transfer the 21 years of pension I had into the LGPS scheme I now belong to. The reason I didn't do it was that I was in the 1995 NHS pension scheme, with a normal retirement age of 60. The LGPS has a normal retirement age of 65 (67 in my case,) As my hope is to retire at 55, this would mean my NHS pension would be reduced by about 20% via actuarial reduction for early payment, but the LGPS years will be reduced by 48% due to it having a normal retirement age seven years later (unless I'm lucky enough to be made redundant on my 55th birthday!)

    If you have any significant length of service in the NHS, it's possible that some of your pension (possibly years up to 2015) would be the same as mine. Even if you planned to work to 65, your final salary element would increase due to being taken later. If your service is recent and you only have a couple of years in, you may as well transfer as you won't be losing anything significant.

    In response to the previous advice, I'd say transferring any defined benefit scheme like LGPS or NHS pension into a fund was a very risky venture and I think by law you are required to consult a financial adviser before doing it.
    • atush
    • By atush 6th Sep 17, 7:29 PM
    • 16,333 Posts
    • 10,081 Thanks
    atush
    • #4
    • 6th Sep 17, 7:29 PM
    • #4
    • 6th Sep 17, 7:29 PM
    I didnt say i recommended it, i merely pointed out it was allowed.
    • FatherAbraham
    • By FatherAbraham 6th Sep 17, 10:08 PM
    • 737 Posts
    • 561 Thanks
    FatherAbraham
    • #5
    • 6th Sep 17, 10:08 PM
    • #5
    • 6th Sep 17, 10:08 PM
    Hello,

    I am about to leave the NHS to go & work in education. I am a member of the NHS pension scheme (I've had a break in employment to study, so belong to the 1995 & 2015 schemes respectively) having worked from 2001-2002, then 2005 to the current day.

    In my new job, I will qualify for the Local Government Pension Scheme (LGPS).

    My question is, do I leave my NHS pension where it is, or do I transfer it across to the new scheme?

    Many thanks 😊
    Originally posted by Travelling_shoes
    LGPS is far riskier than NHS, since the latter is backed by the state, so its liabilities are the same as gilts. It's conceivable that a local authority would not be able to meet its obligations, and would default.

    Warmest regards,
    FA
    • Spreadsheet Addict
    • By Spreadsheet Addict 7th Sep 17, 9:20 AM
    • 4 Posts
    • 4 Thanks
    Spreadsheet Addict
    • #6
    • 7th Sep 17, 9:20 AM
    • #6
    • 7th Sep 17, 9:20 AM
    I didnt say i recommended it, i merely pointed out it was allowed.
    Originally posted by atush
    No offence intended - I was merely headlining the risks, not suggesting you were advising that route.
    • Spreadsheet Addict
    • By Spreadsheet Addict 7th Sep 17, 9:21 AM
    • 4 Posts
    • 4 Thanks
    Spreadsheet Addict
    • #7
    • 7th Sep 17, 9:21 AM
    • #7
    • 7th Sep 17, 9:21 AM
    LGPS is far riskier than NHS, since the latter is backed by the state, so its liabilities are the same as gilts. It's conceivable that a local authority would not be able to meet its obligations, and would default.

    Warmest regards,
    FA
    Originally posted by FatherAbraham
    I believe LGPS funds also come with a government guarantee, although they are a funded scheme, so there's not much difference on that issue.
    • woolly_wombat
    • By woolly_wombat 7th Sep 17, 12:50 PM
    • 484 Posts
    • 289 Thanks
    woolly_wombat
    • #8
    • 7th Sep 17, 12:50 PM
    • #8
    • 7th Sep 17, 12:50 PM
    I believe LGPS funds also come with a government guarantee, although they are a funded scheme, so there's not much difference on that issue.
    Originally posted by Spreadsheet Addict
    Alas no.

    This has been covered before.

    See #7 in
    http://forums.moneysavingexpert.com/showthread.php?p=70277607&highlight=lgps+guarantee

    Hyubh gave some background information and provided a link to a QC opinion re the financing and regulation of the LGPS http://www.lgpsboard.org/images/PDF/Publications/QCOpinionJan2015.pdf which states:

    18. Turning to central government, in my view it is not in any direct way the
    guarantor of, or ultimately responsible for the payment of, LGPS benefits.
    Neither in the 2013 Regulations, nor in the Superannuation Act 1972
    under which they are made, nor in the Public Service Pension Schemes Act
    2013 is any such obligation to be found. I am not aware of any statement
    of commitment by the government which might found a legitimate
    expectation in public law (and such an expectation is not in any event the
    same as an absolute legal obligation, departure from it also being capable
    of being justified by an overriding public interest).
    So I'm afraid that FatherAbraham may have a point, although it might be deemed politically risky to deny poorly paid classroom assistants and school lunchtime assistants etc their pensions.

    Possibly best not to put all your eggs in the LGPS basket.
    Last edited by woolly_wombat; 08-09-2017 at 8:51 AM. Reason: Clarification
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,543Posts Today

7,376Users online

Martin's Twitter