Deferred Pension Query

davidjg

My wife (44) worked for EDS (now part of Hewlett Packard) from 2001 until 2008 and has a deferred pension entitling her to a pension of £5359 estimated at her normal retirement date in 2038.

Returning to work having taken a break to bring up our sons she now works for the NHS and contributes to the NHS Superannuation Scheme Scotland.
Is there any scope for transferring her deferred pension to her NHS scheme or indeed any other arrangement?

mgdavid

http://hp-eds.xpmemberservices.com/#


the FAQs mention transferring out, you need to ask NHS Scotland re transferring in. Then compare the relative financial merit of doing it or leaving it where it is.

kidmugsy

What's her scheme retirement date for the NHS Superannuation Scheme Scotland?

As for transferring elsewhere, she'd have to get a quote for a CETV, and find an IFA who holds the qualifications necessary for advising on transfers.

She'd also need to ask herself why she'd want to transfer out of that DB scheme to a money purchase pension.

Albermarle

You do not say why you would want to transfer it . I think most people would tend to leave a deferred DB pension where it is, unless there was some specific reason not to.

woolly_wombat

Your wife has a year from joining the NHS in which to transfer in any other pensions.

To keep all options open she should fill in the transfer forms ASAP to determine what the NHS scheme would offer. She will then be in a position to decide whether to go ahead or not.

She could also consider drip feeding from earnings into a separate private pension from which to draw down if she thinks she might retire earlier than 65/SPA.

xylophone

She does realise that while it is possible (after the necessary advice) to transfer out of the HP Scheme into a DC scheme, it is not possible to do the same with the NHS Scheme.

If she wishes to keep her options open, then she is better sticking with the status quo?

xylophone

My wife (44) worked for EDS (now part of Hewlett Packard) from 2001 until 2008 and has a deferred pension entitling her to a pension of £5359 estimated at her normal retirement date in 2038.

She has read the Scheme Information and understands revaluation in deferment/index linking in payment?

Has she obtained a new state pension statement? Have you?

https://www.gov.uk/check-state-pension

hyubh

Albermarle wrote: »

You do not say why you would want to transfer it . I think most people would tend to leave a deferred DB pension where it is, unless there was some specific reason not to.

Chances are HP values its liabilities more prudently (i.e., as more costly) than the government does the NHS scheme's, in which case the CETV will probably buy a higher pension in the latter compared to the former, allowing for revaluation rate differences.

That said, the government is changing the discount rate for the NHS and other unfunded public sector schemes in the not too distant future, so that could be another reason not to hang about getting a transfer quote (the more prudent the government decides to be about its pension promises, the less pension an inward transfer will buy).