Deferred Members
These pages explain deferred membership of the NHS Pension Scheme, and introduce the rules and benefits that apply to deferred members.
Important note 1: as a result of the changes to the NHS Pension Scheme effective 1 April 2008, there are a number of issues to consider for individuals in deferred membership up to 31 October 2008 who subsequently re-join the NHS. Further information is available in the document Deferred members factsheet available in the Scheme Changes section of the members’ library.
Important note 2: the changes also mean that members who deferred membership on or before 31 March 2008 will, when they retire, be subject to different rules and benefits from members who deferred membership after 1 April 2008. The first group will be subject to the rules and benefits of the NHS Pension Scheme (pre 1 April 2008 terms) and the second group to the rules and benefits of the NHS Pension Scheme (post 1 April 2008 terms) – also known as the NHS Pension Scheme Amended April 2008. Information about the different terms and benefits is available in the document Rules and benefits comparison available in the Scheme Changes section of the members’ library.
About deferred membership
Contributors to the pension scheme who leave the NHS before retirement and do not transfer their pension to another pension scheme, are known as 'deferred' members. This is because payment of pension is 'deferred' until retirement age.
Members with 2 or more years’ membership, or less than 2 years, with pension rights previously transferred from a personal, money purchase or stakeholder pension, can choose deferral – ie leave benefits in the Scheme.
Deferred main Scheme benefits are increased each year by the rate of inflation to protect their value and will normally be paid when the deferred member reaches age 60. At this point the deferred member will get a pension payable for life and, depending upon which rules and benefits apply to their pension (see note 2 above) a tax free lump sum.
Deferred members do not need to apply to defer their benefits. NHS Pensions will automatically write to you if you do not rejoin the Scheme within 12 months of leaving. But please contact us if you change your address by completing the contact us form on this website.
If you do rejoin the Scheme within 12 months, your membership will link up and all your membership will count when your retirement benefits are worked out.
Should you die before or after you retire, life assurance and family benefits may be payable.
For more information use the links in the left hand menu or for a more comprehensive guide read the ‘Leaving the scheme’ (booklet SDK) available in the members’ library.