Two pensions, what would you do

enthusiasticsaver

ed1su wrote: »

Members of the Scheme can currently apply to take their benefits early from the age of 55 years.

Members should note that early retirement will affect the pension benefits you receive, both in the Final Salary Section and the Flexible Retirement Plan Section.

For any member who retires before age 65, benefits may be reduced by reference to the Normal Retirement Age of 65 (i.e. taking account of the number of years before your 65th birthday). However, the lump sum payable on retirement will not be reduced. Further details of the circumstances under which reductions apply can be obtained from the Pensions Office.


Reading above I assumed you can take the pension at age of 55

You can take it early but as Audaxer and above says it may be reduced. You have 16.5 years worth of pensionable service but if you take it early it will be reduced. If you look further into the scheme it will tell you the percentage. I worked in a University and my pension scheme had an online calculator. At the moment your pension is deferred as you have left. The online calculator should tell you what it will pay out at age 55, 60 and 65 or older depending on when your NRA is.

You need to look at the NHS scheme too to see what the terms are and if they are better than your University scheme. If you don't intend staying in the NHS though it may not be worth transferring over.

ed1su

enthusiasticsaver wrote: »

You can take it early but as Audaxer and above says it may be reduced. You have 16.5 years worth of pensionable service but if you take it early it will be reduced. If you look further into the scheme it will tell you the percentage. I worked in a University and my pension scheme had an online calculator. At the moment your pension is deferred as you have left. The online calculator should tell you what it will pay out at age 55, 60 and 65 or older depending on when your NRA is.

You need to look at the NHS scheme too to see what the terms are and if they are better than your University scheme. If you don't intend staying in the NHS though it may not be worth transferring over.

I checked and they don't have online calculator for USPS scheme. As for working in NHS, i have been working there since November and enjoy the job, I would rather stay if my contract is extended.

as for university pension now it's run by a different company, I have been chasing them since end of November to send me calculation. after my initial contact they emailed saying if I wish to transfer to let them.know and they will log a case to get it calculated. I replied back saying I wish to transfer.. but they stopped replying to my messages. since I wasn't too sure what to do I kinda of let it drop. Now I wanted to decide what to do hence posting message on this board. so far I have received useful advice. I will chase them up for calculation.

thanks again Ed1su

ed1su

hyubh wrote: »

I'll be honest, I had to Google to figure out whether 'USPS' was a typo for 'USS'. However, that wording proved it wasn't ('University of Sheffield Pension Scheme'). Looking on the website, the USPS was a final salary scheme that stopped future accrual on that basis in 2011 in favour of a contracted-in, cash balance structure. Cash balance schemes might be considered many things, but 'normal' ain't one of them

Not to put too fine a point on it, but cash balance schemes have all the limitations of proper DB schemes (and in the USPS case, proper private sector DB schemes - I see revaluation is capped to 5%) without the actual benefit. Given you've been in the NHS scheme for less than a year, I'd start the process for getting a transfer-in quotation pronto. If you did leave after 12 months, a transfer-in would mean you get a preserved benefit in the NHS scheme notwithstanding. While it may still be the case that the NHS pension bought from the transfer-in isn't attractive, it would still be better to have all the facts on the table before deciding.



If you retire before Normal Pension Age benefits will be reduced by reference to the Normal Pension Age (i.e. taking account of the number of years the benefit is taken early).

If you wish to retire from the Pension Scheme before Normal Pension Age, this will require both the consent of the University and of the Trustees.

https://www.sheffield.ac.uk/polopoly_fs/1.123309!/file/USPS_FRP_Member_Guide.pdf

This isn't particularly different to the situation with the NHS scheme, although there the CARE scheme has an NPA of SPA not 65, and there isn't a requirement to get employer agreement first in order to go early.

I would like to thank you for detailed reply. you have made things clear. yes it is USPS Sheffield University pension scheme. originally I wanted to transfer to NHS but wasn't quite sure what to do.. if I have 16 years university pension and also 2nd pension with NHS, if my job exists for another 18 to 20 years, so that will be 2nd pension, or would it better to transfer to NHS, in the hope my contract gets extended after initial year.

thanks again for your detailed reply.

Ed1su

kidmugsy

Question for the knowledgeable: what happens to your NHS pension rights if you leave after a year? Do you just have to accept a return of contributions?

If you had transferred in a pension from elsewhere, does that change the position? That is to say, would it secure the OP a decent deferred NHS pension? (Presumably only the OP could know if that is what he would want.)

hyubh

ed1su wrote: »

originally I wanted to transfer to NHS but wasn't quite sure what to do

https://www.nhsbsa.nhs.uk/member-hub/transferring-scheme

See the link to the booklet near the end, and read the instructions about the two application forms that need completing carefully.

Once the USPS have done their part, the NHS scheme will calculate the extra CARE pension that the transfer value will buy you; at that point you then decide whether to go ahead or not.

if I have 16 years university pension and also 2nd pension with NHS, if my job exists for another 18 to 20 years, so that will be 2nd pension, or would it better to transfer to NHS, in the hope my contract gets extended after initial year.

Your 'in the hope' is irrelevant - the fact of transferring in will mean you would earn an NHS pension regardless (i.e. a transfer in will override the two year 'vesting period'). That for me would be one reason to do the transfer. Second would be the conversion of a cash balance pension to proper DB. A reason against would be the higher normal pension age in the NHS scheme, however if you ended up retiring at state pension age anyway, the higher revaluation in the NHS scheme would put you ahead.