NHS pension

Reg_Smeeton

Hi all

I’m currently considering taking up a new role in the NHS.

According to the scheme booklet, you are not entitled to a pension if you leave with less than two years service “unless you have transferred in a personal pension” https://www.nhsbsa.nhs.uk/sites/default/files/2021-07/1995-2008%20Members%20Guide%20%28V23%29%2007.2021.pdf , you would either have to transfer out into a money purchase scheme or get a refund of contributions, both of which would seem sub-optimal if for whatever reason the employment didn’t last two years.

As a workaround, could I open a SIPP and fund it with a token amount and transfer it in to guarantee entitlement to the DB scheme “from day one”?

MX5huggy

Possibly, worst case is you end up with a small SIPP which at least means you have a scheme to transfer the NHS pension into. 

 Do you not have any other pensions you might want to transfer in? The rates are quite favourable. 

Marcon

Reg_Smeeton said:

Hi all

I’m currently considering taking up a new role in the NHS.

According to the scheme booklet, you are not entitled to a pension if you leave with less than two years service “unless you have transferred in a personal pension” https://www.nhsbsa.nhs.uk/sites/default/files/2021-07/1995-2008%20Members%20Guide%20%28V23%29%2007.2021.pdf , you would either have to transfer out into a money purchase scheme or get a refund of contributions, both of which would seem sub-optimal if for whatever reason the employment didn’t last two years.

As a workaround, could I open a SIPP and fund it with a token amount and transfer it in to guarantee entitlement to the DB scheme “from day one”?

Yes, although in practice it won't be from day one. With the NHS, the actual transfer-in process takes a considerable time...

Reg_Smeeton

MX5huggy said:

Possibly, worst case is you end up with a small SIPP which at least means you have a scheme to transfer the NHS pension into. 

 Do you not have any other pensions you might want to transfer in? The rates are quite favourable. 

I do have a SIPP approx value £16k, although my intention was to keep/build this in order to defer taking DB pensions for as long as possible when I (hopefully) early retire. 

I’m also currently in the LGPS, current accrued benefits are £5k per annum from age 68.

Reg_Smeeton

MX5huggy said:

Possibly, worst case is you end up with a small SIPP which at least means you have a scheme to transfer the NHS pension into. 

 Do you not have any other pensions you might want to transfer in? The rates are quite favourable. 

Out of curiosity do you know a ballpark figure of how much pension 16k would buy? Thanks

drjohn67

Very little. I checked recently and the annuity was equivalent to dividing 90% of the amount over 30years. If you live to 5years past your expected life span then you will get the money back. The charges outweigh any possible income. I would invest mine in an ISA or similar, then draw down. At least if I die earlier than average lifespan the money is inherited by family rather than an annuities company.

draiggoch

Isn’t this the correct scheme information for a new member?
https://www.nhsbsa.nhs.uk/sites/default/files/2015%20Members%20Guide%20%28V11%29%2007.2021.pdf

This includes a transfer of benefits if under two years not just your contributions.