NHS Pension Transfers

If you’re a member of the NHS pension scheme, it’s possible to transfer your pension elsewhere. However, there are strict rules and caveats governing what you can and can’t do.

In this comprehensive guide, we explain everything you need to know, including where and when you can transfer your NHS pension, how to transfer it, and why it’s essential to speak to an advisor before making any decisions.

Read on for more information or jump to the section that’s relevant to you via the links below…

Can you transfer your NHS pension to another scheme?

In theory, you can transfer your NHS pension to a different scheme. However, there are tough restrictions, which make the process difficult. For example, the NHS doesn’t allow transfers into any scheme offering flexible benefits or defined contribution schemes. These rules came into effect on 6th April 2015 and it excludes the majority of pension schemes out there.

You may be able to transfer to another defined benefit pension. However, most providers don’t accept transfers in from the NHS scheme.

Where can you transfer your NHS pension?

Transfer options out of the NHS scheme are fairly limited. Here, we outline what’s currently on offer:

Another defined benefit pension

As mentioned above, you’re able to transfer your NHS pension to another defined benefit scheme, if you can find one that accepts transfers in from the NHS scheme.

If you’ve been a member of the NHS scheme for less than two years, you’ll need to have joined the new scheme within 12 months of leaving pensionable NHS employment and applied for the transfer within 12 months of joining your new scheme.

Another public sector pension

If you’re moving to another job within the public sector, you may be able to transfer your pension and retain any final salary pension entitlements under what’s called the Public Sector Transfer Club.

To qualify for a transfer under the Club’s terms, you must apply for the transfer within 12 months of joining the new scheme and the period between leaving one scheme and joining another must be no more than five years.

A defined contribution occupational pension

If you’ve been a member of the NHS scheme for two or more years, you can’t transfer to any pension offering flexible benefits, which includes all defined contribution pensions.

If you have less than two years’ qualifying membership, you may be able to transfer to a defined contribution pension, (if you can find one that accepts transfers in from the NHS). If you do, you’ll need to join the new scheme within 12 months of leaving pensionable NHS employment and apply for the transfer within 12 months of joining the new pension scheme.

Nest

Nest is a type of workplace or occupational pension, set up by the government, that multiple employers use to enrol their staff. That means the same rules as above apply, namely you can’t transfer your NHS pension if you’ve been an NHS scheme member for two or more years. If you’ve been a member for less than two years, you must join Nest within 12 months of leaving NHS pensionable employment and apply for the transfer within 12 months of joining Nest.

A SIPP

You can’t transfer into a SIPP if you’ve been a member of the NHS scheme for two or more years. If you’ve been a member for less than two years, you may be able to transfer to a SIPP as long as you set it up within 12 months of leaving NHS pensionable employment and apply for the transfer within 12 months of opening your SIPP.

How to transfer your NHS pension

Follow this three-step process if you’re thinking about transferring your NHS pension:

Can you transfer your NHS pension overseas?

If you move abroad, you can transfer your pension. But the following caveats apply:

What happens to your NHS pension if you leave?

When you leave the NHS, if you can’t or don’t want to transfer your pension, you can simply leave it and collect your benefits when you reach the scheme’s retirement age. This is called ‘deferring’ and is available to anyone with at least two years’ qualifying membership.

Speak to an NHS pension transfer advisor

It can’t be stressed enough that any decision regarding transferring your NHS pension needs to be considered carefully. That’s why it’s crucial to seek advice from a regulated financial advisor before you do anything.

They’ll be able to review your individual circumstances and help you decide whether transferring out is the best course of action. If it is, they’ll then be able to help you through the application.

We have advisors in our network who are highly experienced in dealing with pension transfers

Give us a call on 0808 189 0463 or make an enquiry for a free initial chat.