Leaving NHS Pension

frugalsar

HI
I have worked for the NHS for the past 12 months during which time I have been paying into the pension scheme. I have now been offered a job in Australia and plan to move there hopefully permanantly. I have looked at the NHS Pensions paperwork and it says if I leave the scheme I get defered? what is that? Can't I get back the money I have paid in? My visa for Australia is 6 months off so should I stop it now to prevent any more being paid in? I don't really know much about pensions and this is the first time on my working life (I'm 35) that I have had one! Has anyone any advice?

mania112

I think it's still the case that:

With less than 2 years service you can get a refund (minus tax) on the contributions you've made.

xylophone

http://www.nhsbsa.nhs.uk/Documents/Pensions/rf12.pdf
Is this relevant to you?

frugalsar

That's a brilliant help, thanks. I will be looking into pensions in Australia if we decide to take permanant residency there but I think in any case my NHS pension wouldn't be transferable anyways and I would rather just start with a clean slate (although I know I will have to put a great chunk into a pension starting it so old!

kidmugsy

That link includes "You cannot have a refund of contributions if:
... you have had a transfer of pension rights into the Scheme from a personal pension, regardless of the length of membership."

So it might be in your best interest to open a Personal Pension and quickly transfer it into the NHS scheme. That would mean that in the NHS scheme you would retain the rights bought with your gross own contribution and also the employer's contribution.

Otherwise all you'll get is a rather lame refund of your own contribution less tax and national insurance.

atush

I would not opt for your contributions back and leave them deferred if you can. As you say, at 35 you are late to pensions and the NHS one is excellent. you would not get back all you put in (as you would have to pay tax) and you would not get what the NHS put in. So it would be worth more than you can do with what you get back. So leave it.

You never know, Australia might not work out, and if it does this little NHS pension might pay for a flight home once per year to visit family.

jem16

atush wrote: »

I would not opt for your contributions back and leave them deferred if you can.

Unfortunately it's not possible to leave them deferred with less than 2 years membership unless a personal pension has been transferred in. Only options are a refund or a transfer out to another pension.

http://www.nhsbsa.nhs.uk/Pensions/2663.aspx

I would take the transfer out and not lose the employers' contributions, tax and NI that would happen with a refund.

atush

I thought they were talking about transferring in so they could stay?

anyway, if not you are right about transferring will be worth more than getting back contribs.

jem16

atush wrote: »

I thought they were talking about transferring in so they could stay?

I didn't see the OP mention anything about transferring in.

atush

It was kidsmugsy who suggested it in post 5, not the op- sorry.

but would it work?

jem16

atush wrote: »

but would it work?

Possibly but possibly not as most have to be transferred in within 12 months of joining scheme.