Transfer from BT pension to NHS

namchar

I am 45, have left BT after 21 yrs service and started working for the NHS at band 7. BT have offered me a transfer value of £52000 from my section C pension. Should I transfer to the NHS pension scheme? I guess I need to first find out how many years this would buy but does anyone have any thoughts on this?

nesssie1702

Try and find out how much that will buy you in the NHS scheme?

I transferred around £15K into the LGPS scheme a couple of years ago and it bought me just under 3 years service.

novice-saver

All IMHO - I am not a financial adviser.. etc.


Assuming I'm reading BT's pension site correctly, section C is a 60th scheme payable in full from age 60.

If you've worked 21 years the pension entitlement is just over a third your "pensionable scheme salary". (21/60 x highest annual salary in last 3 years)

I'd say you were either earning next to nothing, or the transfer value is daylight robbery:
if you were to put 50K into an annuity as a 65 year old man you'd struggle to get 3K per year, without index linking, the BT pension increase appears to be RPI up to 5%.


I'd leave it where it is under the terms offered.... even though there is a humungous hole in the BT pension (about 5 billion UKP)

http://www.btpensions.net/BTPS/scheme_details/section_c_details.htm

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/3368069/BT-pension-deficit-soars-by-5bn.html