Refund of NHS pension contributions

debtfree2901

I've been paying into an NHS pension scheme for around 10 years i.e. an amount is deducted from my salary each month. Due to a change in personal circumstances I have decided to leave the NHS pension scheme, and I want to withdraw all monies I have paid into the pension so far. However, upon making enquiries with the Scottish Public Pensions Agency I have been informed that I am free to leave if I wish, but there are only 2 options available to me which are

1. Preserve your benefits in the scheme, for payment at your normal pension age.

2. Apply to transfer your accrued benefits to another pension arrangement.

SPPA advise me I am not able to receive a refund of contributions, this is only available if I have less than 2 years qualifying service.

Can anyone think of a course of action I can take, my ultimate aim being to receive a refund of all my contributions?

Thanks in advance.

dunstonh

Can anyone think of a course of action I can take, my ultimate aim being to receive a refund of all my contributions?

You can't do what you want as its not possible.

Due to a change in personal circumstances I have decided to leave the NHS pension scheme

Are you sure that is a wise thing to do?   The NHS pension is fantastic and worth around 25%-30% of your salary.     It is nearly always a foolish idea to opt out of the scheme.   Why do think it is the right thing?

Brie

There are ways to get to the money but none I know about that are legal and so can end up costing you significantly.  And even doing it illegally you won't get the full whack.  

Depending on your age you might be able to start collecting the pension if you are really needing the money but I suspect to do this you would need to be at least 55 years old.  You're likely to have the option to take 25% paid out but as it's much earlier than the scheme's retirement age it will all be greatly discounted so again not a great idea really.

Are you continuing to work for the NHS?  If so and you leave the scheme you will be losing out on accruing even more excellent benefits.  Free money from your employer really.

Dazed_and_C0nfused

And you may well have to start paying more tax as a result of leaving this particular pension scheme.

There is very rarely a genuinely good reason to leave a pension like the NHS one.

QrizB

debtfree2901 said:

Can anyone think of a course of action I can take, my ultimate aim being to receive a refund of all my contributions?

You could wait until retirement age and claim a pension? That should get all your contributions back, plus more, but it might take a number of years.

Flugelhorn

the money can't be taken out of the scheme until you transfer it or take it at retirement, there really is no way to get it. NHS scheme is good and if you leave it simmering will give a pension at retirement

xylophone

Due to a change in personal circumstances I have decided to leave the NHS pension scheme, and I want to withdraw all monies I have paid into the pension so far. 

It is not possible to withdraw your contributions.

2. Apply to transfer your accrued benefits to another pension arrangement.

May not be as simple as it sounds.

https://pensions.gov.scot/nhs/your-membership/opting-out-or-leaving-nhs/transferring-benefits-out

If you’re leaving employment with the NHS in Scotland (or you’re opting out of the NHS pension scheme) you can transfer the value of your accumulated pension benefits to another approved pension scheme.

If you’re moving to another NHS post in England & Wales or Northern Ireland, you can ask to transfer your existing benefits into their scheme but note that the transfer won’t take place automatically - you’ll have to make a formal application.

You can also transfer out to a registered occupational pension scheme with defined benefits, but you can’t move to a defined contribution scheme offering flexible benefits (unless you have between three months and two years’ membership in the scheme, and currently don’t qualify for a pension in retirement).

Silvertabby

As the others have said, a refund of your contributions is not possible.  End of.

Also think long and hard about opting out - you would be rejecting a public sector DB pension scheme that many people can only dream of.

If you do decide to cease paying into the  pension scheme, but continue working in the NHS, then your only option would be to leave your benefits deferred until you are old enough to access them (currently 55 but may increase) OR if you become eligible to access them earlier on the grounds of serious ill health.

I expect that you won't be happy with the answer you have been given, but it is the correct one.  If you try to find a 'better' answer via Dr Google ignore anyone who claims that you can access your pension now (via a 'little known loophole') because they will be scammers eager to pocket your money for themselves, leaving you with nothing but a big tax bill.

Stubod

..as others have said you cannot withdraw your contributions..... simple as.

Also puzzled as to why you would want to give up one of the best pension schemes going...?

Dazed_and_C0nfused

I suspect we won't be hearing from the op again.

Another satisfied customer 🙂

nigelbb

NHS pension is accrued at a rate of 1/54 i.e. if you earn £54,000/year you accumulate another £1,000 of index linked pension each year. Average life expectancy at retirement is around twenty years so that's another £20,000 or more so nearly 40% extra. It should really be regarded as deferred salary paid in retirement