NHS pension refund

docloddar

Hi to everybody.

I worked from 01.09.06 - 31.08.08 for the NHS.

Per definition it is said that if you worked less than two years you are entitled to claim a refund of contributions.

In my case it was exactly a two years contract.

Is it worth to claim for it?

regards

dunstonh

I would guess that you would have heard by now if you had been entitled. They usually ask what you are going to do quite quickly after you leave.

Taking a refund is actually poor value and best avoided.

bella2121

I would suggest either claiming a refund or transfering the funds to another pension scheme, this is unless you plan to return to the nhs in the future. Otherwise if you leave it it will remain dormant until the point you claim your pension at which point it is not going to be worth much at all.

I worked within a NHS payroll department and this is what we used to suggest to people in yur situation, if you do want to claim a refund contact your old employer and they can send you a form and submit the refund request which the pension service would put into your bank account

hope this helps

docloddar

@bella2121

I was exactly hoping to get such an profound answer, because it is such a tricky question.

I will straight away contact payroll of my previous employer.

Thank you!

docloddar

dunstonh

With respect to bella, her answer is technically incorrect. A bit worrying for someone that used to give advice to people.

EdInvestor

bella2121 wrote: »

Otherwise if you leave it it will remain dormant until the point you claim your pension at which point it is not going to be worth much at all.

This isn't correct.the pension's value will be uprated for inflation until you retire so it will keep its value. Do you expect at any point to be working for other members of what's called the "Transfer Club"? ( eg local govt, teachers,civil service, universities).If so it would be worth transferring the pension into these schemes as there is a special deal. Otherwise it's almost certainly best left where it is.

docloddar

@EdInvestor

I relocated back to germany after working for the PCT.
It was a fixed contract for the above mentioned time and I am not intending to work in the UK in the very next time, but who knows???
I know that the NHS Pension Scheme is a very good pension scheme but there would be great difficulties to get it transferred abroad.

Cheers,
docloddar


@dunstonh

in the official statement of the nhsbsa (www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Decision_Tree_Refunds.pdf) it is written that you cannot have a refund of contributions if your membership is more than 2 years.
Therefore the question is: are employees with an exact 2 year contract entitled to get a refund?
According to bella2121 I am.

But however ,
thank you for your reply.

regards, docloddar

EdInvestor

docloddar wrote: »

in the official statement of the nhsbsa (www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Decision_Tree_Refunds.pdf) it is written that you cannot have a refund of contributions if your membership is more than 2 years.

The link doesn't seem to work. What exactly did it say? Was it "more than 2 years" or "2 years or more"?


You are right that you won't be able to get the pension transferred abroad, but that doesn't necessarily matter.Plenty of people get pensions paid from other countries.It can sometimes be quite useful tax-wise.

jem16

docloddar wrote: »

@dunstonh

in the official statement of the nhsbsa (www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Decision_Tree_Refunds.pdf) it is written that you cannot have a refund of contributions if your membership is more than 2 years.
Therefore the question is: are employees with an exact 2 year contract entitled to get a refund?
According to bella2121 I am.

But however ,
thank you for your reply.

regards, docloddar

Not according to this;

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/sdk.pdf

You will have to take a refund of contributions, if: you have less than 2 years'
membership,

If you have at least 2 years’ membership you can apply for a transfer at any time before you reach normal retirement age.

If you have 2 or more years’ membership or you have less than 2 years, but transferred pension rights from a personal, money purchase or stakeholder pension, you can choose to leave ("defer") your benefits in the Scheme.

This seems to quite clearly say if you had less than 2 years service you must take a refund or transfer your pension.

docloddar

@EdInvestor; @jem16

here is the link again:

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Decision_Tree_Refunds.pdf

As you can see it is saying 'with more than two years'.

So this is exactly what is confusing me. The link of jem16 pointed out 'less than two years' and this link is saying 'more than two years'. But nothing is said about exactly 2 years.

This was the reason why I was so grateful about the post of bella2121 (worked for payroll) in which she is clearly pointing out that I am entitled to get a refund.

regards, docloddar

jem16

docloddar wrote: »

@EdInvestor; @jem16

here is the link again:

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Decision_Tree_Refunds.pdf

As you can see it is saying 'with more than two years'.

So this is exactly what is confusing me. The link of jem16 pointed out 'less than two years' and this link is saying 'more than two years'. But nothing is said about exactly 2 years.

I think this quote says that if you have 2 years or more you can defer or transfer.

"If you have 2 or more years’ membership or you have less than 2 years, but transferred pension rights from a personal, money purchase or stakeholder pension, you can choose to leave ("defer") your benefits in the Scheme.

as opposed to;

"You will have to take a refund of contributions, if: you have less than 2 years' membership, "
which quite clearly says that you have to have less than 2 years of membership.

This was the reason why I was so grateful about the post of bella2121 (worked for payroll) in which she is clearly pointing out that I am entitled to get a refund.

Just because she worked in NHS payroll does not make her an expert on NHS pensions. I'd be inclined to believe Dunstonh who, as an IFA, deals with pensions all the time.