NHS Pension

tmoneysauce

I’ve been working for the NHS for 2 years and 6 months. I opted out of the pension scheme 2 years into it as it was too costly for me. A couple months later I heard that I could be refunded the pensions so I sent off the form only to discover that I was rejected due to working over 2 years for the NHS. I had sent the form 2 years and 3 months into service. Is there any way that I could try to argue against this, or should I just cut my losses? I am currently in an IVA and the extra money from not being in the pension TEMPORARILY has helped me with basic essentials such as food. This is not a situation that I would like to be in, I appreciate the state pension benefits and recognise this to be a temporary situation to help me financially

Nurse2047

I believe you have a max of 1yr to reclaim so you won’t be able to take the money out however the NHS pension is a very good pension to have if you can keep it. 

https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/Members%20Refunds%20Factsheet%20V5%2002.2017.pdf

Dazed_and_C0nfused

tmoneysauce said:

I’ve been working for the NHS for 2 years and 6 months. I opted out of the pension scheme 2 years into it as it was too costly for me. A couple months later I heard that I could be refunded the pensions so I sent off the form only to discover that I was rejected due to working over 2 years for the NHS. I had sent the form 2 years and 3 months into service. Is there any way that I could try to argue against this, or should I just cut my losses?

Trust me you will be more than happy to have that 2+ years worth of pension when you reach retirement age.

A refund of pension contributions (from which non refundable tax would have been deducted reducing what you actually got back) from a public sector pension scheme is virtually always a terrible choice financially.

Hopefully you will soon realise you are essentially taking a huge pay cut by opting out, not to mention the extra tax you will almost certainly now have to pay 😳.

The sooner you opt back in the better.

Keep_pedalling

What you should be doing is opting right back in, otherwise your future self will regret opting out big time.

dunstonh

I’ve been working for the NHS for 2 years and 6 months. I opted out of the pension scheme 2 years into it as it was too costly for me.

It would actually have ended up more costly to you for opting out.      As a taxpayer, I thank you for your generosity to the state but opting out for 2 years could already have cost you tens of thousands of pounds.

 A couple months later I heard that I could be refunded the pensions so I sent off the form only to discover that I was rejected due to working over 2 years for the NHS. I had sent the form 2 years and 3 months into service.   Is there any way that I could try to argue against this

It is a clear line in the sand.  Less than 2 years is the line.   You were over 2 years.  

 or should I just cut my losses?

Cutting your losses would be to opt back in ASAP.     

QrizB

Per the OP's other thread, they're 26 and four years into an IVA dealing with debts they ran up in their early 20s.

While I agree that opting back into the NHS pension is likely to be in their long-term best interests, I can understand how retirement might seem a long way away and immediate needs appear more important.

Stubod

..you gave up an NHS pension?...wow...regardless of your other problems that was a really bad move, you need to get back into it ASAP...

Universidad

Do you fully understand that you've effectively given up 1/3rd of your salary by opting out of one of the best pensions in the country? Have you sat down and done the maths on what kind of interest rates your debt would need to have in order for it to be more economical to opt out of the pension?

Emmia

Universidad said:

Do you fully understand that you've effectively given up 1/3rd of your salary by opting out of one of the best pensions in the country? Have you sat down and done the maths on what kind of interest rates your debt would need to have in order for it to be more economical to opt out of the pension?

It's also 1/3 which they can't access or have paid to them to help clear their debts faster.

I wouldn't have opted out, but I can see the OPs logic if they're young, as you can think there's plenty of time for pension saving in the future... But before you know it, you're 36, 46... And you can get used to having a little extra in your pay packet each month.

zagubov

I made precisely that mistake 40 years ago (taking a refund from the NHS pension) and it took me literally decades of sacrifice to repair the damage to my pension. I've been an idiot, but you don't have to be one too.
Learn from my mistake and get yourself back in this marvellous scheme as soon as you practically can.

GrubbyGirl_2

I took my money out of my pension when I was 21 (3 years worth as you could in those days 1981) and I got £700 to buy a car.  I realised how foolish this was in around 2000 so I decided to make up those 3 years by buying AVCs (you can't do that now).  I ended up paying an extra £390 a month for 15 years.

It was the worse thing I ever did but so glad I ended up being in the pension for 39 years as I am now living very comfortably on my NHS pension and I would say that those AVCs were also worth doing.

If you don't understand why it's a bad idea not being in the NHS pension scheme then please do some research.  You're not getting the extra 20% tax relief and you're paying 20% more income tax on that amount.  Although it may feel hard to do, imagine living on a state pension and nothing else.