Do I transfer my final salary pension?

big_bird_1

Can anyone help me please ?
I have worked for J Sainsbury PlC 25yrs and am in their final salary pension scheme. Up to 9 months ago I worked full time, but now work just 12 hrs a week.
I now work full time for the NHS and am in their final salary pension scheme also, but don't know whether to transfer my JS pension into the NHS or freeze it.
I pay 10% of my wage into the JS pension and 5% into the NHS, both compulsary amounts. I'm not sure how much longer i'll be continuing to work for JS.

Andy_L

You need to contact Sainsbury's and get the "transfer value" of your pension with them & then find out what the NHS will offer you for that value.

I suspect that you can only transfer your Sainsbury's pension if you stop working for them.

Either way you only have a short window of opportunity to transfer in to the NHS scheme, 6 months rings a bell but don't quote me on that.

MikeJones_2

Hi big bird 1,

When you went part-time did you check how the JS Sainbury scheme deals with the fact that your pensionable salary reduced (significantly, I assume)?

This is important to you because a final salary scheme (if that is what you are in) works on a formula, an example of which is:

length of pensionable service x final pensionable salary
.........accrual rate

Two common examples of ‘final pensionable salary’ would be:

- your last year’s pensionable earnings or
- an average of your last 3 years pensionable salary.

As you were full time for 25 years and are now part-time, I assume your pensionable salary has reduced considerably. How is this reflected in your pension benefits?

Will your part-time salary in the years close to your Normal Retirement Date be classed as your final pensionable salary or do the scheme rules allow for your pensionable salary when you were full time to be used for the 25 years, plus your part time salary for the remainder of your service?

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

LittleMax

Hi Big Bird
I am also looking at transferring JS to NHS. See my thread.