Nhs cetv

Fabmum

Hi, I was made redundant last year after 22 years of NHS pensionable service and have built up a substantial pension pot. I'd like to transfer it out as a CETV to an account where it can earn some interest. I have several years until I reach retirement and want to be proactive about maximising any growth. According to my statement I can't take a CETV, though I don't remember reading that condition before, but can they stipulate that? If I seek independent advice before taking any action and make my own informed decision, surely the decision and responsibility is mine.

Dazed_and_confused

You don't have a pension "pot".

Do you really believe the interest you could earn, if this was possible, would be greater than the annual increases in the value of your deferred pension?

Malthusian

Fabmum wrote: »

Hi, I was made redundant last year after 22 years of NHS pensionable service and have built up a substantial pension pot. I'd like to transfer it out as a CETV to an account where it can earn some interest.

Your pension entitlement will be increased in line with inflation until you retire. Even if you could transfer out, it is very unlikely that you would be better off by doing so. The fact that you don't think your deferred pension is "earning interest" means you don't understand how valuable it is.

According to my statement I can't take a CETV, though I don't remember reading that condition before, but can they stipulate that?

The NHS pension scheme is unfunded and transfers out of unfunded schemes have not been allowed since 2015.

If I seek independent advice before taking any action and make my own informed decision, surely the decision and responsibility is mine.

No, if you take advice then by law the responsibility is the adviser's.

ischofie1

The NHS is an unfounded scheme which means you can't transfer out.

Fabmum

Thank you all for your replies and pointing out my errors/naivety :rotfl:

For pension pot read 'hypothetical annuity cost' (their terminology). The point of the IFA would be to ensure that I did fully understand the implications. The CETV process is subject to actuarial calculations and regulations so any decision, assuming it would be permitted, would ultimately be driven by those, and any investment strategy.

Getting information out of NHS pensions is like a blood and stone scenario so I could reach retirement long before they even provide any details anyway.

bigadaj

Fabmum wrote: »

Thank you all for your replies and pointing out my errors/naivety :rotfl:

For pension pot read 'hypothetical annuity cost' (their terminology). The point of the IFA would be to ensure that I did fully understand the implications. The CETV process is subject to actuarial calculations and regulations so any decision, assuming it would be permitted, would ultimately be driven by those, and any investment strategy.

Getting information out of NHS pensions is like a blood and stone scenario so I could reach retirement long before they even provide any details anyway.

Yes, but you can't do it.

bigadaj

ischofie1 wrote: »

The NHS is an unfounded scheme which means you can't transfer out.

To be fair I think it exists.

dunstonh

I'd like to transfer it out as a CETV to an account where it can earn some interest.

First off, you cannot do that. So, you can put that idea to bed.

However, even if you could do it, what you propose would be a really bad thing to do. The tax you would be would be staggering and the interest rates lower than the investments had they been left in a type of pension that uses investments.

However, as I said, all irrelevant as you cannot transfer the NHS pension.

System

Hi

You say a "substantial pension pot" and "Getting information out of NHS pensions is like a blood and stone scenario so I could reach retirement long before they even provide any details anyway. "

So what is the basis for a substantial amount? Did you get a letter outlining your benefits?

20 years in the NHS is going to give a quarter of your salary as a pension, 22 years slightly more than that, perhaps 27%, which is going to match inflation.

As it was " last year" then as of the 'tenth of april ish' this year you will have an inflation increase. PI (pensions increase) already applied so it has grown. Not actually earned any interest?? Well I am interested in PI, and so should you be arf arf.

So you already know that your NHS pension should keep up with inflation and still represent 27% of a salary to live on when you retire, add in State Pension, deduct a bit for HMRC and decide whether you want to build up a pension pot elsewhere.

maysmummy

Since 2015 you can log on to something called your 'TRS' or total rewards statement. It shows your pension entitlement, annual pension, lump sum, total possible lump sum and your nominal cost of purchasing an annuity. It's only updated once a year and mine hasn't been updated for the last financial year yet. I think this may be where the OP has got her information from. Sorry if this is all known to you all... its quite new to me

stoozie1

maysmummy wrote: »

..... It's only updated once a year and mine hasn't been updated for the last financial year yet.

Just to let you know, they told me the 16/17 year info is expected to go live on the TRS site in October