USS vs NHS pension schemes

aliens30586

Hi everyone
 

In a couple of months I am going to switch from a university position to an NHS one.

I am currently paying into the USS pension scheme (I have about 2 years of contributions) and this will end when i start my new job as I will start paying into the NHS pension scheme.

I have been asked if I want to transfer my USS contribution to NHS. Is this really worth it? Should I do this?
I've looked at the websites but I find the information and terminology difficult to understand and I can't work out if I should transfer my contributions.

Any advice will be gratefully received!

Exotoxin1

NHS scheme is far better. I'd move it.
In NHS the pension Index-linking is not capped and builds up faster than USS while working.
100% of your salary would go in the guaranteed CARE scheme, not in to stocks and shares at your risk if salary goes above £40k.

hyubh

aliens30586 said:

In a couple of months I am going to switch from a university position to an NHS one.

I am currently paying into the USS pension scheme (I have about 2 years of contributions) and this will end when i start my new job as I will start paying into the NHS pension scheme.

I have been asked if I want to transfer my USS contribution to NHS. Is this really worth it? Should I do this?
I've looked at the websites but I find the information and terminology difficult to understand and I can't work out if I should transfer my contributions.

Historically under or over two years would be very important in the USS for determining the transfer value, but for leavers now that isn't an issue. On the other side, transferring into the NHS scheme would be a 'non-Club' transfer that purchases additional pensionable earnings to go with your actual pensionable earnings for your first scheme year of membership, from which the CARE pension for the year is determined.

In itself, the fact the NHS scheme may or may not be more generous than the USS when it comes to accrual or revaluation or increase rates is neither here nor there - it's how generous the transfer in calculation is that counts. In practice I would expect that to come out with a nice number (despite being tightened in recent years, the 'discount rate' used to value NHS scheme benefits still undervalues them compared to how the same benefits in a private sector DB scheme would generally be valued by its actuary). However, after joining the NHS, the process will be to kick the transfer process off, receive a figure for what the CETV from the USS will buy you, then decide to proceed or not at that point. No point deciding to proceed or not before then!

marlot

As Hyubh says, ask for a transfer quote.  It costs you nothing, and you'll be in a better position to decide when you have the figures in front of you.