NHS to USS penion?

RubyRoo13

Hi all

I have a NHS pension (pre 1995) and USS have offered me Just under 13 years as a transfer based on a leaving salary of 24k. I have 10 yrs to go until I am due to retire when I'm 66 and am now earning more than double the 24k
Does anyone have experience or knowledge to say if this is a good idea or not?

hyubh

RubyRoo13 wrote: »

I have a NHS pension (pre 1995) and USS have offered me Just under 13 years as a transfer based on a leaving salary of 24k. I have 10 yrs to go until I am due to retire when I'm 66 and am now earning more than double the 24k
Does anyone have experience or knowledge to say if this is a good idea or not?

Assuming you started your current job within the past 12 months, the transfer will be done under 'Club' terms and you will get a final salary service credit in the USS regardless of whether you are in the legacy FS section or not; while the USS is likely to get less generous in the next year or so, that won't directly affect any transfer in already completed, i.e. the terms of the latter won't suddenly change.

That said, while a transfer done on Club terms is usually a good thing to pursue, I imagine the main negative will be a later normal pension age in the USS. What's the normal pension age for your NHS benefits?

dunroving

RubyRoo13 wrote: »

Hi all

I have a NHS pension (pre 1995) and USS have offered me Just under 13 years as a transfer based on a leaving salary of 24k. I have 10 yrs to go until I am due to retire when I'm 66 and am now earning more than double the 24k
Does anyone have experience or knowledge to say if this is a good idea or not?

How many years did you pay into the NHS scheme?

What age will the NHS pension kick in if you leave it there? (I assume your USS will kick in at 65 or 66?)

What were the other conditions of the NHS pension (what proportion final salary per year contributed; any lump sum)?

I general, I'd say if they are transferring in a similar number of years all other things being equal a transfer is better because your NHS final salary pension will be based on your NHS salary "back then" whereas the years transferred in will provide a proportional pension based on your final salary in your current job.

Did they say whether the transferred years will be subject to the "old" (final salary-based) USS pension contract rule or the "new" (career-average salary) scheme?

jem16

dunroving wrote: »

I general, I'd say if they are transferring in a similar number of years all other things being equal a transfer is better because your NHS final salary pension will be based on your NHS salary "back then" whereas the years transferred in will provide a proportional pension based on your final salary in your current job.

Transfers are done on Club basis so the salaries are never looked at in such a way in that if the retirement age is the same and benefits are the same, the same number of years would be credited.

As to salary, a Deferred member would indeed have the pension award based on the final salary as of leaving but uprated through CPI. It could be possible for that to work out better if no promotion or large increase in salary on moving happens.

Did they say whether the transferred years will be subject to the "old" (final salary-based) USS pension contract rule or the "new" (career-average salary) scheme?

As hyubh said, it should still be done on final salary terms.

RubyRoo13

Thanks for the quick replies

I will do a bit mere research tomorrow as I left all my papers at work and hopefully be able to give some more info.