Can I transfer my NHS pension to another public sector pension?

Miss_Moneysaver

Hello,

I am thinking of a career change (NHS --> teaching). A lot of reasons behind it...mainly my job is moving away and I am not happy there (I moved hospitals a while back and made one heck of a mistake doing so as I have been so unhappy). I have spent a lot of time in schools over the last 3 years and I really enjoy it.

Question is, can I transfer my 18 year NHS pension to a teachers pension? Would it make a difference? I am part time now and my take home pay is roughly what a teacher would earn at the bottom of their pay scale. I do plan on going full time (teaching) so my salary would increase over the years. I was hoping that, even with a year out to do a PGCE, I would end up with a bigger pension pot than if I stayed part time in the NHS.

hugheskevi

can I transfer my 18 year NHS pension to a teachers pension?

Yes

Would it make a difference?

It would be a public sector transfer club move.

If your new salary is higher, you get the benefit of that additional amount following the transfer. The move is different (and better value) to a normal Cash Equivalent Transfer Value.

Miss_Moneysaver

Thanks for that. I have never heard of that. I will have a look into it.

Miss_Moneysaver

Oh, another question.
If I went full time between now and April 15 would my entire pension be based on full time hours for the 18 years? I have been part time for the last 9 years. Work are short staffed so it is an option for me and it would be great to do this before the changes to public sector pensions kick in next April.

Sinhanada

I would suggest you contact NHS Shared Services and speak to their pensions department - they would be the better placed to advise on the pension moves and what that would entail for you, otherwise an independent financial advisor

RichandJ

Miss_Moneysaver wrote: »

Oh, another question.
If I went full time between now and April 15 would my entire pension be based on full time hours for the 18 years? I have been part time for the last 9 years. Work are short staffed so it is an option for me and it would be great to do this before the changes to public sector pensions kick in next April.

It usually works like this.

Part time service is pro-rated down, e.g., work one year at half normal hours, service = 6 months.

Salaries are pro rated up, e.g., half normal hours salary £10,000, full time equivalent £20,000.

So for the one year period working half time benefit accrual is:

6/12 x £20k / 80* = £125 pa of pension. Each period of part time/full time svc is treated separately.

* I don't know the actual NHS accrual rate, this is just an example.

System

Hi

Normally it is FTE Full Time Equivalent Salary.

So 18 years at 18 hrs per week based on a 37 week would be 8.756756 years. OR 8 years 276 days.

This then multiplies by the salary for a 37 hour week. EG: 23,456.78

Giving a figure of £205,405.29 which if the scheme is 80ths equates to £2567.57 pension earned per annum.

Things to consider...

IF the pension pot was left with the NHS what kind and amount would it increase by?

IF you took it over to the TPS what would the value be and what could it increase by?

What is the potential time you would be in the TPS to build up a new pot.

kidmugsy

I'd start by compering the scheme retirement age you currently have in the NHS scheme, with the one you'd get at the TPS.

mgdavid

if you take a year out to study for PGCE (and I presume wont be earning or employed in that year) then also consider how this might affect any transfer.

xylophone

if you take a year out to study for PGCE

Might be able to train on the job?

http://graduates.teachfirst.org.uk/our-programme/qualified-teacher-training.html?gclid=CKz5jaLzksACFfOhtAodYioAzA