Leaving the NHS: What Happens to Your NHS Pension?

People leave NHS employment for all sorts of reasons: a move to the private sector, a career change, emigrating, or a break to care for family. A common worry is what happens to the pension. The short answer is that you keep what you have built. The details depend on how long you have been a member and what you do next.

This is general information, not financial advice. NHS Pensions can give you figures for your own record.

If you have at least two years of membership: a deferred pension

Once you have at least two years of qualifying membership, leaving the scheme gives you a deferred pension. That means:

• the pension you have built stays in the scheme
• it is paid from your normal pension age, which for the 2015 scheme is your State Pension age or 65, whichever is later
• in the 2015 scheme, it is increased each year in line with inflation (CPI) until it is paid

There is one difference from staying in the scheme. While you are an active member, your 2015 scheme pension grows by inflation plus 1.5% each year. As a deferred member, the increase is inflation only.

You can choose to take a deferred pension early, from age 55 (rising to 57 from 2028), but it will be reduced for early payment.

If you have less than two years: refund or keep

With less than two years of qualifying membership, you can usually choose between:

• a refund of your contributions, minus tax and a deduction for any contracted-out rights, if applicable
• leaving the benefits in the scheme, in some circumstances, if you plan to return to NHS work

A refund gives you cash now, but you lose the pension built with the employer's contributions, which are worth much more than your own. If you are likely to come back to the NHS, contact NHS Pensions before you claim a refund.

Transferring your NHS pension

The NHS Pension Scheme is an unfunded public service scheme. By law, you cannot transfer it to a defined contribution scheme, such as a personal pension or most workplace pensions in the private sector.

You may be able to transfer to another public service scheme through the Public Sector Transfer Club, which gives you credit in the new scheme that broadly reflects your NHS service. Time limits apply, so ask your new employer's scheme early.

What you lose when you leave

• Death in service cover. Active members are covered by a lump sum of normally twice pensionable pay. Deferred members have lower death benefits.
• Ill-health retirement. Deferred members can apply for early payment on ill-health grounds, but the conditions and benefits differ.
• The extra 1.5% growth on 2015 scheme benefits each year.
• The employer contribution of 23.7% of pensionable pay for future years.

Coming back to the NHS later

You can rejoin the scheme if you return to NHS employment. In general:

• your deferred pension stays in your record
• new membership builds further pension in the 2015 scheme
• in some cases, the earlier and later service can be linked, depending on the length of the break and which scheme the earlier service was in

The rules on linking service are detailed, especially for anyone with older service in the 1995 or 2008 sections. NHS Pensions can explain the effect on your record.

Bank work and part-time NHS work

You do not have to leave the scheme completely. If you reduce to part-time hours, or work on the staff bank, you can usually stay in the scheme and keep building pension, with death in service cover. This can be worth considering if you are leaving a substantive post but still plan to work some NHS shifts.

Keep your details up to date

After you leave, make sure NHS Pensions has your current address and email. Deferred members often lose touch over decades, and you need to claim your pension when it is due. You can view your record through the online member portal.

Common questions

Can I take my pension as a lump sum when I leave? Not normally. Deferred pensions are paid from pension age, apart from small pots in some cases.

What if I move abroad? You keep your deferred pension and can have it paid abroad when it is due.

Do my McCloud choices still apply? Yes, if you have service in the remedy period. See our McCloud remedy guide.

Estimate your pension

The pension retirement calculator estimates what your NHS pension could be worth, and the pension age calculator shows when it can be paid.