I need your thoughts please on NHS transfer

WoodyMax

Hi Xylophone, sorry I missed your other question.  I got a CETV value and was offered 11,500 I had to open a simple account with Aviva and then take it from there.  They mentioned because it was over 10,000 I had to use 2 of 3 'goes' so sorry cannot think of the right word. These two pension pots are DC and one is approx 20K and the other 12K.

xylophone

You transferred your LGPS pension to Aviva.

It was a cash sum of £11,500.

 It seems that Aviva split it into two pots to enable you to use the small pots rule twice.  The link in my previous explains this.

The advantage of the small pots rule is really for those who wish to continue to contribute to a DC pension as taking a "small pot" does not trigger the Money Purchase Annual Allowance.
https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm056510

It appears that you will only wish to continue to contribute to a DB Scheme.

If you do not wish to continue with a transfer of your two DC pensions to the NHS Scheme (although it would appear to provide good value in the form of pension and index linking), you might consider a transfer of both to  another provider - Hargreaves Lansdown would be an example.


You would then have options as to whether to ask them to split the £30,000 into a "small pot" and balance or to just take 25% of the whole tax free and leave the remainder in the pension (in case you didn't wish to trigger the MPAA) or take the 25% tax free and draw down the balance to suit your tax situation etc.

You could always book an appointment with Pension Wise to discuss the implications  of your choice.
https://www.pensionwise.gov.uk/en?gclid=EAIaIQobChMI7PLikuzC7AIVRLDtCh2foQs-EAAYBCAAEgI5__D_BwE

WoodyMax

Xylophone - Thankyou so much!  I was beginning to give up hope of any further help.  You have explained it so clearly - I am very grateful and will consider it carefully now and make my decision.  All the best to you.