NHS Pension Scheme (opting out + receiving employer contributions)

Thrugelmir

katy123 wrote: »

Does anyone know if I’ve been told the correct answer and also the exact reason.

With over 500,000 employees in the NHS. Who is going to administer this number of individual choices and what would it cost. Sometimes the answer is simply common sense nothing more. Micro vs Macro view.

atush

It would not be a costly error if employer contributions are paid, the flexibility in a dc environment so far superior..

It isnt superior to give up a guaranteed income for an uncertain income, but yes it is mreo flexible.

You DO have one option. To open an DC pension and run it alongside.

darkidoe

katy123 wrote: »

I am currently an active member of the 2015 career average revalued earnings (CARE) scheme. I understand the employee and employer contribution amounts and wanted to opt of the scheme but want the employer contributions to be directed to a DC scheme of my choice. It is clear that the employer will be no worst off given that the contribution amount would be the same as if I was in the 2015 CARE scheme. My reasons for this is all solid and checked by an adviser – flexibility, move overseas, purchase commercial building etc….I have been told it’s not possible over the phone and but written to them for a precise reason. Does anyone know if I’ve been told the correct answer and also the exact reason. I suspect the real reason is because it is an unfunded scheme and the employer contributions don’t actually exist, i.e all pensions in payment are paid by the treasury…

Did your IFA really told you that the employer contributions can be directed to a DC scheme with your own contributions going to the DC scheme?? I doubt that would be true. Isn't the NHS 2015 scheme a DC scheme itself? Would there be much difference then at the end of the day?

Would be more interested to know if there's anyone who know if the employer contributions can go into a SIPP?

hyubh

darkidoe wrote: »

Isn't the NHS 2015 scheme a DC scheme itself?

It isn't, it's an unfunded DB one.

Would there be much difference then at the end of the day?

It would be giving up a government guaranteed, salary-related pension, so yes, it would be quite a different.

Would be more interested to know if there's anyone who know if the employer contributions can go into a SIPP?

NHS ones, no.