NHS Pension V Alpha civil service pension - advice please

Skarahwarah

Any advice would be gratefully received please, the more I read, the more confused I'm becoming!
I'm mid 30something and leaving the NHS to join the Civil service, I was told that I can remain in my NHS pension plan rather than enrolling on the Civil Service (Alpha) plan. From what I gather I should stay in NHS plan if I can, but I'm struggling to see/ compare what my pension will be on each. I originally worked for the NHS in 2011, had a break of a few years and returned when 2015 scheme was being brought in, not sure of the relevance of this info but might help. I currently pay in 9.5% in my NHS plan 
Thanks in advance, if you can help

hyubh

Skarahwarah said:

Any advice would be gratefully received please, the more I read, the more confused I'm becoming!
I'm mid 30something and leaving the NHS to join the Civil service, I was told that I can remain in my NHS pension plan rather than enrolling on the Civil Service (Alpha) plan. From what I gather I should stay in NHS plan if I can, but I'm struggling to see/ compare what my pension will be on each. I originally worked for the NHS in 2011, had a break of a few years and returned when 2015 scheme was being brought in, not sure of the relevance of this info but might help. I currently pay in 9.5% in my NHS plan 
Thanks in advance, if you can help

Alpha has a better accrual rate but not as good revaluation rate for active members (accrual rate = proportion of each year's pensionable pay that is used to calculate annual pension on retirement; revaluation rate = how previous years' pension accruals increase year on year before coming into payment). So, the longer you stay an active member of the NHS scheme, the more the value of CARE pension earned in previous years increase above inflation. However the pension earned in the first place starts from a lower base.

Another difference is that contribution rates in Alpha are lower. Not because the pension is inherently worth less, but for essentially historic reasons (traditionally the civil service pension scheme was non-contributory, salaries were instead reference checked and adjusted to allow for the pension).

Other than that, normal pension ages are the same, and how the pensions increase in deferment and in payment are also the same. Ill health pensions and other such provisions will be slightly different, but I wouldn't make the decision based on those aspects.

PS - if you joined the civil service scheme, you would presumably have the option of a 'Club transfer' of your NHS benefits. This would restore the final salary link for pre-15 service (the service credit in the civil service scheme would be adjusted to allow for scheme structure differences). So assuming it is correct you have the option of remaining an active member of the NHS scheme, wanting to keep a final salary link for pre-15 service wouldn't be a reason for taking the option up.

Andy_L

Skarahwarah said:

Any advice would be gratefully received please, the more I read, the more confused I'm becoming!
I'm mid 30something and leaving the NHS to join the Civil service, I was told that I can remain in my NHS pension plan rather than enrolling on the Civil Service (Alpha) plan. From what I gather I should stay in NHS plan if I can, but I'm struggling to see/ compare what my pension will be on each. I originally worked for the NHS in 2011, had a break of a few years and returned when 2015 scheme was being brought in, not sure of the relevance of this info but might help. I currently pay in 9.5% in my NHS plan 
Thanks in advance, if you can help

That seems unlikely.
You can leave you NHS pension where it is & join the CS scheme for future accrual or transfer your NHS pension into the CS

There may be an exemption in some niche cases eg
its a secondment 
The MOD employes some clinical staff who might be on NHS T&Cs

Skarahwarah

Andy_L said:

Skarahwarah said:

Any advice would be gratefully received please, the more I read, the more confused I'm becoming!
I'm mid 30something and leaving the NHS to join the Civil service, I was told that I can remain in my NHS pension plan rather than enrolling on the Civil Service (Alpha) plan. From what I gather I should stay in NHS plan if I can, but I'm struggling to see/ compare what my pension will be on each. I originally worked for the NHS in 2011, had a break of a few years and returned when 2015 scheme was being brought in, not sure of the relevance of this info but might help. I currently pay in 9.5% in my NHS plan 
Thanks in advance, if you can help

That seems unlikely.
You can leave you NHS pension where it is & join the CS scheme for future accrual or transfer your NHS pension into the CS

There may be an exemption in some niche cases eg
its a secondment 
The MOD employes some clinical staff who might be on NHS T&Cs

"This is a permanent and pensionable appointment. (Health professional staff providing health-assessments and medical opinion in relation to the administration of disability benefits, and who are existing members of the NHS Pension Scheme, will be permitted continued access to the NHS Pension Scheme.)"

This was stated in the application information, I assumed this meant that I would have a choice of whether to stay with my pension terms and conditions as they stand, or enrol on Alpha and start a new pot through this. I will try to speak with someone and find out what's what. Obviously I would like to keep my NHS pension if it is the better option, but if there's no real difference or negatives for me then I don't suppose it really matters?

hyubh

Skarahwarah said:

"This is a permanent and pensionable appointment. (Health professional staff providing health-assessments and medical opinion in relation to the administration of disability benefits, and who are existing members of the NHS Pension Scheme, will be permitted continued access to the NHS Pension Scheme.)"

This was stated in the application information, I assumed this meant that I would have a choice of whether to stay with my pension terms and conditions as they stand, or enrol on Alpha and start a new pot through this. 

On that basis, yes. However, leaving the NHS scheme and joining Alpha instead would still leave the option of a Club transfer. So there are three options not two (maintain NHS scheme membership; join Alpha and transfer; join Alpha and keep the NHS benefits deferred and separate).

I will try to speak with someone and find out what's what.

Sounds sensible.

Obviously I would like to keep my NHS pension if it is the better option, but if there's no real difference or negatives for me then I don't suppose it really matters?

For the sake of maximising the value of your final salary service, which given McCloud will likely go to end of March this year, it makes sense not to go with what I gave as the third option above. But between staying in the NHS scheme vs. joining Alpha and transferring, I'd say an expectation of how long you will likely be staying in the role should perhaps be the main determinant (i.e. shorter period -> Alpha's higher accrual rate is more attractive, much longer period -> NHS's higher revaluation rate would be). I don't think the different definitions of final pay for your 2011-22 service will make much of a difference, and if you did transfer, you would keep the NHS revaluation rate for the pension credit added to your regular Alpha pension.

Skarahwarah

That's helpful, thanks so much for taking the time to respond 😊  much appreciated.