NHS Retire and Return

smithers1981

Wife retired last year and returned part time taking lump sum and NHS pension.

on returning she was auto enrolled in a NEST pension is this worth keeping I can’t see any tax relief on her contributions or any NHS contribution assume as she’s already taken pension that’s it.

slightly confused any help appreciated thanks 

Brie

it should be treated as a completely separate pension so the fact that she's getting one and contributing to another shouldn't matter.  

I've got one pension in payment from one employer and my new part time work has a NEST that I'm contributing to.   I'm only doing it to get the employer's contributions paid in and the NHS must be contributing so she will be getting some benefit eventually.  

spaniel101

Since 1st April 2023 retired (1995) and returned members are now able to rejoin into 2015 scheme (previously you were not allowed and simply auto-enrolled on to government Nest pension, a Defined Contribution scheme).   Nest is Relief at Source, contributions are taken from Net Pay and receive 25% Tax Relief from HMRC directly to the Nest pension (you should be able to see this on your wife's Nest pension account online).  
The Employer also makes a small Nest contribution (it's something like 8% total yours and theirs).   Nest also has significant 'contribution' fees.


No doubt the NHS 2015 (Defined Benefit) is by far the shining star here  (index-linked, + 1.5% on 1/54th accrual, death-in-service, ill health, spouse/child pension, Employer contribution 20.6%, tax relief directly from pay slip, etc) payable at state pension age, or earlier with actuarial reduction.   Totally  different to Defined Contribution (reliant on the stock market).


As far as Im aware, your wife should have been sent a letter around end March (as many have received this) asking if she wishes to now join the 2015 scheme instead of Nest and/or the option to transfer the 'small' Nest pension into the 2015 (this is possible within a certain time period of within first 12 months of joining the 2015 scheme). 

If your wife chooses to do this, she would need to contact her Pensions office/administrator to enquire how to process but should be relatively straight forward. 

2015 NHS Pensio Scheme guide for members (nhsbsa.nhs.uk)

Dazed_and_C0nfused

NEST operate a RAS (relief at source) pension scheme so her contributions won't reduce her taxable income but she should see tax relief added to her contributions within her NEST account.

If she contributes £100 then £25 gets added making a gross contribution of £125.

Could she be impacted by the earnings threshold for auto enrolment pensions?

smithers1981

Ah the relief at source makes sense she’s only just managed to obtain login details so will get her to check hardly seems worth it tbh as she is already receiving her old pre 1995 NHS pension 

Nebulous2

smithers1981 said:

Ah the relief at source makes sense she’s only just managed to obtain login details so will get her to check hardly seems worth it tbh as she is already receiving her old pre 1995 NHS pension 

Free money is generally worth it. Employers are obligated to provide an auto-enrolment option, and to contribute to it. She will be getting tax relief, and an employer contribution. 

smithers1981

Thanks for advice she’s decided to stay keep up with contributions be a nice little bonus in 10 years when she retires fully 

nigelbb

She will be much better off if she joins the 2015 NHS pension scheme which offers an index linked 1/54 of pay in retirement. Average life expectancy at retirement is about twenty years so this amounts to nearly 40% extra pay in retirement.