NHS Pension Question

Della556

Hi, 
Hopefully someone can help me 🤞
I have 24 continuous pension contributions into the NHS Pension Scheme.
When I am 67 I would like to take this as a monthly pension does anyone know if this is a possible option?
The NHS helpline and emails haven’t directly answered this question and just tell me that if I want I can have a full refund of all of my contributions as I made contributions for less than 2 years ( my actual time of employment was 23.5 months)
Thanks 
Della

Flugelhorn

does the 23.5 months take you to being 67? or did you leave before you were 67?

looks like if you leave before pension age and have not got 2 years then the options are transfer or refund 

I think this is most likely to help you https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/Members Refunds Factsheet V5 02.2017.pdf

"Linking membership If you are thinking of re-joining the Scheme within 12 months of leaving you do not have to apply for a refund of contributions. If the break between leaving and re-joining is less than 12 months the membership will automatically link together. If you do not re-join the Scheme within 12 months of leaving and hold under two years qualifying membership, you will normally only be entitled to a refund of contributions as a disqualifying break of 12 months or more will occur"

Della556

Hi, thanks for the quick reply. I left the NHS a couple of years ago and I am now almost 60

JoeCrystal

To make your pension deferred, you need at least two years’ qualifying membership. Unfortunately, you should have stayed longer if you wanted that option.

Silvertabby

It's not your number of contributions that count, it's your dates of membership with just 23.5 months you have failed to meet the minimum vesting period (2 years) and so you don't have actual pension rights in the NHS.

Taking a refund of your own contributions (less tax) is an option, but you would have a much better return by transferring your benefits to another pension scheme.  

Who is your new employer?  If you have taken another public sector job, then it's a doddle.  Just tell your new pension provider that you have NHS benefits that you would like to transfer in, and they will set the ball rolling.  Just don't dally, as your new scheme  may have a 12 month limit on transfers in.

If your new employer is private sector, then it can still be done.  You will just have to explain to your new pension provider that while you have NHS benefits (which can't normally be transferred to a private scheme) you failed to meet the vesting period and so don't have actual pension rights.

JoeCrystal

Della556 said:

Hi, thanks for the quick reply. I left the NHS a couple of years ago and I am now almost 60

Then, I am afraid a refund is the only course of action. You need to transfer to another pension scheme within 12 months of leaving the scheme. Since you left NHS a couple of years ago, that option is no longer available. Of course, the refunds will be taxed as well.

Della556

Many thanks for all your replies, it looks like my only option is to claim the refund of my contributions !

FIREmenow

JoeCrystal said:

Della556 said:

Hi, thanks for the quick reply. I left the NHS a couple of years ago and I am now almost 60

Then, I am afraid a refund is the only course of action. You need to transfer to another pension scheme within 12 months of leaving the scheme. Since you left NHS a couple of years ago, that option is no longer available. Of course, the refunds will be taxed as well.

Is it not possible to transfer to a DC pension, such as a SIPP after more than 12 months?
Edit: not possible.

FIREmenow

Flugelhorn said:

does the 23.5 months take you to being 67? or did you leave before you were 67?

looks like if you leave before pension age and have not got 2 years then the options are transfer or refund 

I think this is most likely to help you https://www.nhsbsa.nhs.uk/sites/default/files/2017-03/Members Refunds Factsheet V5 02.2017.pdf

"Linking membership If you are thinking of re-joining the Scheme within 12 months of leaving you do not have to apply for a refund of contributions. If the break between leaving and re-joining is less than 12 months the membership will automatically link together. If you do not re-join the Scheme within 12 months of leaving and hold under two years qualifying membership, you will normally only be entitled to a refund of contributions as a disqualifying break of 12 months or more will occur"

Seems to be a max 5 year break is permitted in 2015 scheme:

Taking a refund

Taking a refund of your own contributions is usually the least beneficial outcome for you compared with long term pension provision. This Scheme provides for linking periods of contributions separated by breaks of five years or less, so you may prefer to delay claiming a refund until you have a firmer idea of your future intentions.

From the latest 2015 members guide (link is a pdf download): https://www.nhsbsa.nhs.uk/sites/default/files/2024-05/2015 Members Guide (V13) 05.2024.pdf

@della556 if it has not yet been 5 years since you left, then returning to work for the NHS to get at least the minimum 2 years would be the best outcome for your pension, for all the reasons mentioned above and to avoid the tax and NI you will have to pay if your contributions are refunded to you.

Flugelhorn

@FIREmenow yes does look like that for the 2015 -probably better reflects the movement between the various bits of the health care system these days. Agree is poss find a job even if part time etc to reach the qualifying time

I decided not to return to my current job (as they wouldn't agree to part time) after maternity leave - rules indicated I had to pay back the mat pay if I didn't return but I got a half day a week job in a lower grade elsewhere in the system and that ticked the box  while I looked for something else. Sometimes you just have to play the game

FIREmenow

Flugelhorn said:

@FIREmenow yes does look like that for the 2015 -probably better reflects the movement between the various bits of the health care system these days. Agree is poss find a job even if part time etc to reach the qualifying time

I decided not to return to my current job (as they wouldn't agree to part time) after maternity leave - rules indicated I had to pay back the mat pay if I didn't return but I got a half day a week job in a lower grade elsewhere in the system and that ticked the box  while I looked for something else. Sometimes you just have to play the game

Indeed, and it's a shame there is a game at all. Losing an experienced staff member completely, instead of agreeing to reduced hours - I know others who have had the same situation in the NHS.

If the OP did want to get to two years of pension, at least the NHS is a huge employer with a variety of vacant roles that could fit the bill.