What happens to my NHS Pension contributions if I am transferred into a private company?
If you are no longer employed by the NHS or are not working for an organisation entitled to be in the NHS Pension Scheme the contributions you make to the NHS Pension Scheme will cease.
If you have over 2 years membership at the time of transfer you may choose to leave your benefits in the scheme and take a deferred pension. You may also choose to Transfer your benefits to another pension arrangement.
If you have less than 2 years service at the time of transfer, you may also choose to transfer your benefits to another pensions arrangement. Alternatively, you may choose to have your contributions refunded.
You can only choose to transfer your benefits into another occupational, personal pension arrangement if certain time limits are met. For details of these time limits, please consult the NHS Pensions Scheme Guide:
http://www.nhsbsa.nhs.uk/Documents/Pensions/SD_Guide_V3_-_06.2009.pdf
What is a “broadly equivalent” pension scheme? Will it be a final salary pension scheme? Could I be asked to pay more? Can the private employer pay less than my current NHS employer?
A “broadly equivalent” scheme is a scheme which offers you overall equivalent benefits as the section of the NHS Scheme you are a member of and will have to be a final salary scheme. The decision as to whether a scheme should be certified as “broadly comparable” is made by the Government Actuary. You will be required to pay the same contributions as you are now paying. Your employer will be required to pay the balance of the cost which is likely to be more that your NHS employer was paying.
What if the new employer fails to offer me a ‘broadly equivalent’ scheme or withdraws it?
The commercial contract between the NHS and your new employer should specify that a broadly comparable scheme must be offered to you and maintained. If it is not then this would be a breach of contract. Initially you would need to raise this with your new employer and your trade union representative can help you to do this. If this is unsuccessful you should raise the matter with your previous NHS employer or the holder of the contract.
Would I have any other remedy?
Yes, via the Pensions Ombudsman.
If I am working for a Social Enterprise and I stop delivering NHS services what happens to my pension?
You would not be able to remain in the NHS Pension Scheme. The terms of the Secretary of State’s Direction are that you may only remain in the pension scheme while you are engaged on NHS funded work.
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If you have a question that is not answered here then we suggest that you contact your line manager, HR advisor or trade union representative.
If there are any general subjects that you think are missing from these FAQs then please contact us using the email contact in the top right of this screen. Please note that we cannot answer individual questions about your transfer.