Your NHS Pension is one of the most valuable employment benefits in the UK. If you leave the NHS, here’s what you keep.
The Short Answer
If you have 2+ years of qualifying membership, your pension is preserved — it stays in the scheme and grows until you claim it at retirement. You don’t lose it.
If you have less than 2 years, you can either:
- Get a refund of your contributions (minus tax)
- Transfer the value to another pension scheme
Which NHS Pension Scheme Are You In?
There are three main sections:
| Scheme | Members | Normal Pension Age | Benefit Type |
|---|---|---|---|
| 1995 Section | Joined before 2008 (with protection) | 60 | Final salary |
| 2008 Section | Joined 2008–2015 (with protection) | 65 | Final salary |
| 2015 Scheme | Most current members (from April 2015) | State Pension age | Career average (CARE) |
Most people who left recently are in the 2015 Scheme or have benefits in multiple sections (due to transitional arrangements following the McCloud remedy).
What “Preserved” Means
2015 Scheme (Career Average)
Your pension is based on 1/54th of your pensionable pay each year you were a member.
When you leave:
- Your built-up pension is revalued each year at CPI + 1.5%
- This means it broadly keeps pace with inflation — often growing faster than prices
- At your State Pension age, you claim the full preserved pension
Example: You worked 8 years in the NHS earning an average of £35,000/year.
- Annual pension built up: 8 × (£35,000 ÷ 54) = £5,185/year (approximate, before revaluation)
- This is then revalued upwards each year until you claim it
- At retirement, it could be worth significantly more
1995/2008 Sections (Final Salary)
If you have preserved benefits in the older sections:
- 1995 Section: 1/80th of final pensionable pay × years of membership, plus a tax-free lump sum of 3× annual pension
- 2008 Section: 1/60th of final pensionable pay × years of membership (no automatic lump sum, but you can exchange pension for lump sum)
- Final salary is based on your best of the last 3 years’ pensionable pay before leaving
These benefits are also inflation-linked until you claim them.
Claiming Your Preserved Pension
When Can You Claim?
| Scheme | Normal Pension Age | Earliest Claim (Reduced) |
|---|---|---|
| 1995 Section | 60 | 55 (with reduction) |
| 2008 Section | 65 | 55 (with reduction) |
| 2015 Scheme | State Pension age | 55 (with reduction) |
Early Retirement Reduction
If you claim before your Normal Pension Age, your pension is reduced. The reduction is approximately:
| Years Early | Approximate Reduction |
|---|---|
| 1 year | ~5% |
| 3 years | ~14% |
| 5 years | ~22% |
| 10 years | ~38% |
How to Claim
- Contact NHS Pensions (NHS Business Services Authority)
- Request a retirement estimate showing your projected pension
- Complete the retirement application form
- Choose how you want your benefits paid (pension, lump sum options)
Should You Transfer Out?
Why You (Probably) Shouldn’t
The NHS Pension is a defined benefit scheme — it promises a specific income for life. This is almost always more valuable than a defined contribution pot because:
- Guaranteed income for life — no investment risk
- Inflation-linked — increases with prices each year
- Survivor benefits — your spouse/partner receives a pension if you die
- No investment decisions — you don’t need to manage a pot
When a Transfer Might Be Considered
- You have a very serious health condition and reduced life expectancy
- You want to leave a larger inheritance (DC pensions are more flexible on death)
- You need immediate access to a lump sum
- You have very small preserved benefits not worth maintaining separately
Critical: If your preserved NHS pension benefits are worth over £30,000 (CETV — Cash Equivalent Transfer Value), you’re legally required to get independent financial advice before transferring. This is to protect you.
Re-Joining the NHS
If You Come Back
- You automatically re-join the 2015 Scheme
- Your new membership is separate from your preserved benefits
- Both are paid at retirement
- Depending on the length of your break, some linking of service may be possible
Buying Added Pension
When you re-join, you can purchase added pension (extra pension on top of your normal benefits) through additional contributions. This can help make up for time out of the scheme.
Checking Your NHS Pension
Online
Log in to the NHS Pension Online portal (through the NHS Business Services Authority website) to:
- View your membership history
- See your projected pension
- Request benefit estimates
- Update your details
Request a Statement
Contact NHS Pensions to request a total reward statement showing:
- Your scheme membership dates
- Your current pensionable pay
- Your projected pension at Normal Pension Age
- Your projected pension if taken early
Contact Details
- Online portal: nhsbsa.nhs.uk
- Phone: 0300 330 1346
- Email: nhsbsa.pensionshelp@nhs.net
If You Have Less Than 2 Years’ Service
| Option | Detail |
|---|---|
| Contribution refund | Get your contributions back, minus tax (20% deduction) |
| Transfer to another scheme | Move the value to a workplace or personal pension |
| Leave it | Not an option — must choose refund or transfer within certain time limits |
The refund is only of your contributions — you don’t get the employer’s contributions. A transfer usually preserves more value.