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Combining NHS & Local Authority Pensions

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Hi All,
I am thinking of moving from the NHS (20 yrs) to a better paid local authority role. I have been purchasing 7 extra years for my NHS pension as I started it at age 30 and wanted to retire on full benefits at 62 (i think!). I am 51 now - would I be better off transferring my NHS pension to the local authority scheme and continue buying 7 years? I have 21 years in the 2008 NHS pension scheme (this includes an element of additional years purchased) and the last 4 years or so are in the new NHS scheme.
Would appreciate any advice, many thanks.

Replies

  • edited 13 July at 2:33PM
    hyubhhyubh Forumite
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    edited 13 July at 2:33PM
    While your NHS 2008 scheme service would transfer in as LGPS 2008 scheme service (adjusted for up or down for differing details in the respective benefit structure), you wouldn't be able to continue an added years contract. Also the NRA for transferred in final salary salary benefits would be the LGPS 2008 scheme NRA (i.e. 65), if your NHS 2008 NRA is earlier.

    Generally speaking, if your new pay (whole-time equivalent if part time) is materially higher, then it will make sense to transfer, even if your final salary NRA in the NHS scheme is less than 65 (since if it is, the service credit in LGPS 2008 will likely be adjusted upward). Also any NHS 2015 pension will transfer over, potentially adjusted again in terms of the initial amount, but keeping the NHS CARE scheme's higher active member revaluation rate (this is a feature of so-called 'Club' transfers). Whereas, if you kept your NHS pension separate, any CARE element would receive the lower, deferred revaluation rate.
  • SilvertabbySilvertabby Forumite
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    As hyubh says.
    There are other considerations, however.  The first one that springs to mind would be if you were to be made redundant after age 55.  If you had transferred your NHS pension into the LGPS, then you would probably be able to access all of your benefits on favourable redundancy terms.  If you hadn't transferred, then you would only be able to access your NHS pension on normal early retirement terms.
    If you do decide to transfer, then you could start an APC scheme in the LGPS - and/or pay into in-house AVCs.
    You could ask for an estimate of how much LGPS pension your NHS benefits will buy you before making your final decision.
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