Help please ? Understanding my transfer in estimate value quotation from NHS pensions

Marineboy1961

Hi I am sorry to say a bit confused trying to understand....

What the transfer in estimate value quotation from NHS Pensions is actually worth in simple terms?  What would this pay me as a yearly sum when I retire?

I am 64 on 28/01/25 and have been with the NHS for nearly a year I plan to work maybe max 3 years, scaling down to part time in the next 1 - 2 years.

I have copied the NHS Transfer in estimate as follows:  

1.Aegon pension
Your former pension scheme has offered to pay a transfer value of £24767 . Providing payment is received 03/04/25 this will buy you pension benefits in the NHS scheme as indicated  below 
2015 NHS pension scheme 
pensionable earnings credit  £71,750.01 
club earned pension credit £0.00
Scheme year ending 31//03/2024
Pensionable membership 16 years 308 days

2.Legal and General
Your former pension scheme has offered to pay a transfer value of £7,597.15 . Providing payment is received 03/04/25 this will buy you pension benefits in the NHS scheme as indicated  below2015 NHS pension scheme
pensionable earnings credit £22,008.91
Scheme year ending 31/03/24 
club earned pension credit £0.00
Pensionable membership 1 year 001 days  

Thanks so much for your help ! 
 

JoeCrystal

I vaguely recall that the credit will be added to your first year’s pensionable earnings and used to calculate the pension amount you accumulate in that year. Just assume you will receive 1/54 of that credit as a pension.

 In that case, you can work out that you will get index-linked £1,736 per year for life. As expected, it is more expensive to transfer in since you can claim the pension in a very short time. It's still at a better rate than an index-linked annuity, though!

GunJack

Isn't it buying the op 17 years and 309 days reckonable (pensionable) service in the nhs scheme? With it being care, even if it's 18 years at 1/54 of current salary it's well worth having..

Silvertabby

GunJack said:

Isn't it buying the op 17 years and 309 days reckonable (pensionable) service in the nhs scheme? With it being care, even if it's 18 years at 1/54 of current salary it's well worth having..

Not in this case.  The years of pensionable service quoted would be for a club transfer with a final salary link - ie, from another public sector pension fund. 

As the two transfers in are from private sector DC schemes, it's just the money that counts.  Joe's estimate of  a total of index-linked £1,736 per year for life looks right.   The transfer factors for DC to public sector are indeed on the generous side - but are age related, hence the low quote in this case. 

FIREDreamer

Silvertabby said:

GunJack said:

Isn't it buying the op 17 years and 309 days reckonable (pensionable) service in the nhs scheme? With it being care, even if it's 18 years at 1/54 of current salary it's well worth having..

Not in this case.  The years of pensionable service quoted would be for a club transfer with a final salary link - ie, from another public sector pension fund. 

As the two transfers in are from private sector DC schemes, it's just the money that counts.  Joe's estimate of  a total of index-linked £1,736 per year for life looks right.   The transfer factors for DC to public sector are indeed on the generous side - but are age related, hence the low quote in this case. 

It is a bit more index linked income than current annuity rates would provide. Also it vests the NHS pension straightbaway even if you leave with less than 2 years service.

GunJack

Silvertabby said:

GunJack said:

Isn't it buying the op 17 years and 309 days reckonable (pensionable) service in the nhs scheme? With it being care, even if it's 18 years at 1/54 of current salary it's well worth having..

Not in this case.  The years of pensionable service quoted would be for a club transfer with a final salary link - ie, from another public sector pension fund. 

As the two transfers in are from private sector DC schemes, it's just the money that counts.  Joe's estimate of  a total of index-linked £1,736 per year for life looks right.   The transfer factors for DC to public sector are indeed on the generous side - but are age related, hence the low quote in this case. 

Thanks Tabby...didn't appreciate the club nuances ,🙂