Transfer from LGPS back into the NHS

swindiff · 6 August 2018 at 12:29PM

My wife is currently paying into an LGPS pension scheme, she is due to change jobs next month and go back to the NHS.

She previously worked for the NHS on a part time basis from 2004-2016. She will be going back full time.

She started her current employment in December 2016, so by the time she leaves at the end of this month she will have completed 20 months service, this I believe is short of the 2 years required to be able to defer a pension, so the only option is to cash it out (bad as would lose all employer contributions) or transfer it.

Are there any issues in transferring from LGPS to NHS? Would it be a 1 to 1 transfer, so buy 20 months service in the NHS?

When she was in the NHS scheme before, she was in the 1995 pension scheme, I believe towards the end of her service she was forced onto the 2008 scheme?

There is also something about if you return to NHS service within 5 years of leaving you can pick the pension up where you left off. So would she go into the 2008 scheme rather than the 2015 scheme?

Many thanks

xylophone · 6 August 2018 at 12:52PM

You have seen this?

https://www.nhsbsa.nhs.uk/sites/default/files/2018-05/Transfer%20Booklet%20%28V18%29%2005.2018.pdf

Your wife should check her personal situation with the NHS Administrator.

swindiff · 6 August 2018 at 2:41PM

Thanks for that, I shall read through it

hyubh · 6 August 2018 at 8:26PM

swindiff wrote: »

Are there any issues in transferring from LGPS to NHS? Would it be a 1 to 1 transfer, so buy 20 months service in the NHS?

Not exactly, but very close. As she joined the LGPS under the current CARE scheme, she has a CARE pension account that revalues by CPI every year. If she transferred out into the NHS scheme, she'll get pretty much the same pension credit, revaluing by the same amount (i.e. not the NHS scheme's own, higher revaluation rate for active members - doesn't really matter, because if it did get the NHS rate, then one would expect the pension account credit to reduce accordingly).

Given a refund would be her own contributions (less reclaimed tax relief), and a transfer out to a non-public sector scheme (e.g. a personal pension) would be on not very generous 'non-Club' terms, I'd saying transferring into the NHS scheme is almost a non-brainer.

swindiff · 7 August 2018 at 9:14AM

Thanks for that hyubh, I read through the document that xylophone kindly posted and have to say I was still pretty confused lol

Public Sector Transfer Club transfer time limits
If your former scheme is a member of the Public Sector Transfer Club a transfer can only be completed on
Club terms if the length of the break between leaving the former scheme and joining the NHS Pension
Scheme is no more than five years.

Does the former scheme refer to my wife's former pension within the NHS, or her current pension with the LGPS?

The ‘Inner’ and the ‘Outer’ Club
Within the public sector transfer arrangements there are ‘Inner’ and ‘Outer’ Club schemes. Although able to accept a transfer from both Outer and Inner Club schemes, the NHS Pension Scheme is a member of the ‘Inner Club’.

Is LGPS an inner or outer club member and does this even matter?

Career average benefits
If you are a member of the 2015 NHS Pension Scheme transferring career average benefits from an Inner Club Scheme and the relevant time limits are met, you will receive a ‘Club transfer earned pension’ in the Scheme year in which your credit is determined. This pension is subject to indexation in accordance with the ‘in service’ revaluation of your former pension scheme whilst you remain an active member of the NHS Pension Scheme. If you are transferring career average benefits from an Outer Club Scheme, and the relevant time limits
are met you will receive a pensionable earnings credit in the 2015 Scheme on non Club terms.
If you are a member of the 1995/2008 NHS Pension Scheme you will receive a pensionable membership credit, calculated on non Club terms. The transfer cannot be on Club terms because career average benefits can only be transferred on Club terms where membership in the receiving scheme is in a career average scheme, i.e. the 2015 NHS Pension Scheme.

My wife is a deferred member of the 1995/2008 scheme, not the 2015 scheme. I believe this is a final salary rather than CARE pension. So will she get credits in the 1995/2008 scheme or into the 2015 scheme? Also when she starts work back for the NHS next month does she have the choice to continue in the 1995/2008 scheme rather than go into the 2015 scheme?

What do I need to do to if I want to transfer?
• If you want to transfer from a corresponding health service scheme (Scotland or Northern Ireland), please complete Part 1 of Form A and send it to your current pensions or payroll manager so they can complete Part 2. Form A should then be returned to you. Send us the fully completed Form A immediately (Form B is not required).
• For all other transfers, complete Part 1 of Form A and send it to your current pensions or payroll manager so they can complete Part 2. Form A should then be returned to you to keep until you receive the transfer value quotation from your former pension scheme.
• To request a transfer value quotation from your former pension scheme send Form B, and Form B notes to your previous pension scheme immediately. Please note that if you have already received a benefit statement from your former pension scheme, this won’t include the transfer details we need and should not be sent to NHS Pensions.
• Your previous pension scheme should normally provide a transfer value quotation within three months of your request. When you receive it, send it with any option forms requiring NHS Pensions completion and the fully completed Form A to us straight away. Important: Please do not send Form A to NHS Pensions without the transfer value quotation.

So from reading this she need to fill in part 1 of form A send it to LGPS pensions to get a transfer valuation, when she get this back from LGPS it is sent to NHS pensions to request the transfer.

Sorry for all the questions but we want to make sure we get it right.

Many thanks

atush · 7 August 2018 at 10:57AM

Disadvantages include lgps can be transferred out to a D.C. plan and you can use an avc to fund the tfls.

Both potentially valuable

greenglide · 7 August 2018 at 11:06AM

So from reading this she need to fill in part 1 of form A send it to LGPS pensions to get a transfer valuation, when she get this back from LGPS it is sent to NHS pensions to request the transfer

Don't think so. When she has joined the NHS scheme she then sends the form to the current pension scheme which at that point is the NHS one although the wording isn't particularly clear!!!

Transfer from LGPS back into the NHS

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