NHS Pension Transfer

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Karma
Karma Posts: 71 Forumite
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in Pensions, annuities & retirement planning
Hi,

Hoping someone can help with this. My wife worked in the NHS for a few years and has since left but she did have an NHS pension for a while.

She now has a auto-enrolment pension and we were wondering what we should do with the NHS pension, should we transfer it to the auto-enrolment pension fund? If so, how would we do this?

Thanks :beer:
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  • ewaste
    ewaste Posts: 279 Forumite
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    edited 11 April 2018 at 10:17AM
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    If she was directly employed by the NHS then the pension is an unfunded Defined Benefit scheme therefore there is nothing to transfer to a Defined Contribution scheme. Any pension entitlement that has been built up will be deferred and revalued annualy in line with inflation until normal retirement age.

    How long did she work in the NHS and between what years, we might be able to determine what scheme she would have been in and what rules apply.
  • xylophone
    xylophone Posts: 44,422 Forumite
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    She has a deferred Defined Benefit pension from an unfunded public service scheme and wants to transfer to a DC Scheme? if so, this is not permitted.


    See page 3 for full details.

    https://www.nhsbsa.nhs.uk/sites/default/files/2017-05/Transfer%20Out-UK%20Transfer%20Out%20Guide%20and%20application%20pack-20170516-%28V10%29.pdf
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    It's good news that it's not permitted.

    It'll be a useful part of retirement provision.
  • Karma
    Karma Posts: 71 Forumite
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    Hi,

    Thanks for your replies. She was a receptionist at a medical centre (doctors) until 2014.

    How would we find out what type of pension she had? We managed to find an SD number reference.
  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    How would we find out what type of pension she had?

    Look at the benefit statement (issued each year she was employed) or the scheme booklet/welcome pack issued at the start.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Karma
    Karma Posts: 71 Forumite
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    We don't have all documentation, but we have a letter describing the leaving process from 2005, titled "Leaving The Scheme - SDK".

    What types/names are there?
  • xylophone
    xylophone Posts: 44,422 Forumite
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    https://www.nhsbsa.nhs.uk/member-hub/getting-estimate-your-pension
    may help?
  • highet
    highet Posts: 353 Forumite
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    if your wife worked in an nhs GPs surgery she would have been a member of the NHS pension scheme - most likely the 95 section -she will have become a deferred member when she left - she will get 1/80 of her final salary for every year she was a member prior to leaving uprated by CPI annually plus 3 x her pension as a lump sum payable when she is 60 - she can take her pension any time after the age of 50 but would be subject to an actuarial reduction of about 4% of pension for each year before her 60th birthday - the government removed the option to transfer benefits from the nhs scheme to any other scheme other than similar unfunded public sector schemes a few years ago so that isnt an option (probably because they have long since spent any money your wife and others paid in and didnt fancy having to actually come up with the hard cash to cover the cost of the benefits promised!!!!)
  • Karma
    Karma Posts: 71 Forumite
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    highet wrote: »
    if your wife worked in an nhs GPs surgery she would have been a member of the NHS pension scheme - most likely the 95 section -she will have become a deferred member when she left - she will get 1/80 of her final salary for every year she was a member prior to leaving uprated by CPI annually plus 3 x her pension as a lump sum payable when she is 60 - she can take her pension any time after the age of 50 but would be subject to an actuarial reduction of about 4% of pension for each year before her 60th birthday - the government removed the option to transfer benefits from the nhs scheme to any other scheme other than similar unfunded public sector schemes a few years ago so that isnt an option (probably because they have long since spent any money your wife and others paid in and didnt fancy having to actually come up with the hard cash to cover the cost of the benefits promised!!!!)

    Thanks highet, that's really helpful actually and it does sound right.

    We have little documentation but we're trying to get some form of statement from them.

    So really there is nothing to we need to do with it, just leave it and come back when it's time to claim?
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    Karma wrote: »
    Thanks highet, that's really helpful actually and it does sound right.

    We have little documentation but we're trying to get some form of statement from them.

    So really there is nothing to we need to do with it, just leave it and come back when it's time to claim?

    Yes - but do remember to advise them of any change of address if you move in the meantime.
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