NHS Pension

Lala22

Hi

I am an NHS worker looking to transfer an old pension into my NHS pension scheme. I have been told that due to time schedules I will have to transfer under non-club terms. I have asked NHS pensions what this means and no one can provide a simple explanation. I am wanting to know the pros and cons of club vs non-club terms.

Thank you in advance!! !!!129310;

hugheskevi

Non-club terms=Your old pension has a capital value calculated by your old scheme. That capital value is sent to the NHS scheme. The NHS scheme calculates what pension credit that capital sum will purchase in the NHS scheme.

Club terms=You get a pension credit in the new scheme based on your service in the old scheme. The service credit might not be year-for-year, to account for differences such as different normal pension ages and different accrual rates between the schemes. But basically you get the actuarial equivalent value, ignoring any change in salary.

A key advantage of a club transfer over a non-club transfer is when the new job has a significantly higher salary and the pension benefits are final salary. A club transfer ignores the salary difference, so you benefit from it. A non-club transfer takes account of the salary difference (if transferring into a final salary scheme).

Given it appears you do not have entitlement to a club transfer, your choice is between leaving the old pension deferred or taking a CETV transfer, the differences between club and non-club are irrelevant.

Dox

The Club offers those who move between Club schemes the opportunity to transfer pension benefits on special terms. In general, when you transfer your pension benefits between Club schemes, you will receive a broadly equivalent service credit in the new scheme, regardless of any increase in salary on moving.

But there's no point knowing the pros and cons when only one option is open to you: non-club terms. At its simplest, club terms give you a much better outcome, but you've missed that boat, so need to look at what you would get if you transfer on non-club terms. Your current scheme will be able to give you an indication of what any transfer in would 'buy'.