NHS pension refund

bella2121

EdInvestor wrote: »

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.

If you read my post I do say that the OP can transfer the funds to another pension scheme! My TL had worked for years within my department and specialised in pensions, surely if he was wrong in what he was saying he would have had complaints and no longer be in a job

:mad: I'm getting a bit sick of people on here, when I try to give help on issues I have personally had experience other posters try to shoot you down!!!!! I am only trying to help the OP who seems grateful and I can assure you the information I am giving is correct, members who have 2 years or less worth of contributions can claim a refund!

dunstonh

I can assure you the information I am giving is correct,

You were incorrect about leaving it in the scheme. You said "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. "

It does not become dormant. It can be reactivated later if you rejoin (or have access to the tranfer club) and even if you dont, it is index linked annually to retain a more or less real terms value. It does not erode in value like you suggest.

I'm getting a bit sick of people on here, when I try to give help on issues I have personally had experience other posters try to shoot you down!!!!

If you dont post correct information, people will correct it. Its one of the risks associated with posting on forums.

bella2121

bella2121 wrote: »

or transfering the funds to another pension scheme, this is unless you plan to return to the nhs in the future.

I have mentioned here transfering to another pension scheme or rejoining at a later date!!!!!!! I wish people would take the time to read posts properly, i said it would lie dormant unless transferred or rejoined!!!!!!!!!!!

dunstonh

i said it would lie dormant unless transferred or rejoined!

It wont be though. That is where you were mistaken.

Andy_L

bella2121 wrote: »

I have mentioned here transfering to another pension scheme or rejoining at a later date!!!!!!! I wish people would take the time to read posts properly, i said it would lie dormant unless transferred or rejoined!!!!!!!!!!!

Dormant implies it does nothing. It doesn't, it increases by RPI. The correct term is becoming a deferred member

jem16

bella2121 wrote: »

I can assure you the information I am giving is correct, members who have 2 years or less worth of contributions can claim a refund!

So why does the scheme booklet say;

"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."

"If you have 2 or more years’ membership you must leave the Scheme and apply for a transfer more than 12 months before your normal retirement age."

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

These three statements seem to say to me that with less than 2 years you have to get a refund. With two or more years you can transfer or defer.

Where do you read this differently? It would be great for the OP if he/she could have a refund but the scheme booklet suggests to me that he cannot.

EdInvestor

The basis question appears to be whether the OP's length of service is regarded as less than 2 years or more than 2 years.

He should contact the NHS and get an answer to this.

Debt_Free_Chick

docloddar wrote: »

Hi to everybody.

I worked from 01.09.06 - 31.08.08 for the NHS.

This period is exactly two years. The first day of the third year would begin at midnight on 31.08.08.

The same applies to the calculation of days/months/years for the purpose of calculating your pension entitlement i.e. you will have exactly two years pensionable service.

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

You can't claim a refund as you do not have "less than two years" (pensionable) service.

The other posts point out the confusing terminology used by the NHS in their literature, which is not a great situation!

The law is in section 71 of Pension Schemes Act 1993 and means that the scheme MUST give you a deferred pension (short service benefit) if you have at least two years' qualifying service.


Any poor wording in the literature or any "mistake" by the scheme administrators cannot remove your statutory entitlement to a deferred pension - and you cannot opt to have the statutory entitlement disapplied.

HTH

Debt_Free_Chick

bella2121 wrote: »

:mad: I'm getting a bit sick of people on here, when I try to give help on issues I have personally had experience other posters try to shoot you down!!!!! I am only trying to help the OP who seems grateful and I can assure you the information I am giving is correct, members who have 2 years or less worth of contributions can claim a refund!

I can assure you that you can not get a refund if you have two years qualifying service - qualifying service is, briefly, the service that counts for pension purposes under the scheme.

Clicking on THIS LINK takes you to section 71 of the Pension Schemes Act 1993, which requires schemes to provide a deferred pension (short service pension) for members who leave with at least 2 years qualifying service.

If you could have a refund with exactly two years' qualifying service, you would need at least 2 years and one day's qualifying service to get a deferred pension - which would be a very odd way to word an entitlement.

By all means offer advice, opinions and the benefit of your experience, but if you are mistaken, expect it to be pointed out for the benefit of the person asking the question - and others, who are interested.

When you are mistaken, take it as a bonus, as you will have had your knowledge extended at no cost and with no effort on your part

I've not mentioned this on this board before, but as we seem to be engaging in some kind of p!$$ing contest, here's my "experience" ..... 30 years in occupational trust based pensions; pensions manager and secretary to the trustees; FPMI; TPAS adviser for 18 years; NAPF London Group committee member; former PMI Education Secretary in Midlands.

As you can imagine, I have also "had personal experience" in this matter, but I happen to know the law and legislation too, which kinda helps

Debt_Free_Chick

Ah, even I can make mistakes!

Force of habit, as I work in the private sector, lead me to to the Pension Schemes Act 1993. Of course, Public Sector pension schemes are governed by different legislation - which mirrors the minimum statutory requirements for private sector schemes.

So .... click here for section L1 of the National Health Service Pension Scheme Regulations 1995. Same answer though.