Transferring your pension rights

From 6 April 2006 you can only transfer your NHS Scheme benefits to another scheme that is registered with HM Revenue and Customs (HMRC).

If you are leaving NHS employment or just leaving the NHS Scheme, you may be able to transfer your pension rights to:

  • the NHS Pension Scheme in Scotland, Northern Ireland, or the Isle of Man.
    Note: These Schemes are separate from the NHS Pension Scheme (England & Wales) and a formal transfer application must be made.

  • another registered occupational pension scheme, within the meaning of Section 1 of the Pension Schemes Act 1993, which is either:

    - approved under Chapter 1 of Part XIV of the Income and Corporation Taxes Act 1988 or whose application for approval under that Chapter was under consideration, and on 6 April 2006 became a registered pension scheme
    for the purpose of the Finance Act 2004; or

    - a statutory scheme as defined in Section 612(1) of the Income and Corporation Taxes Act 1988, and on 6 April 2006 became a registered pension scheme for the purpose of the Finance Act 2004; or

    - a scheme to which Section 608 of the Income and Corporation Taxes Act 1988 applied, and on 6 April 2006 became a registered pension scheme for the purpose of the Finance Act 2004; or

    established as a registered pension scheme, for the purpose of the Finance Act 2004, on or after 6 April 2006 and which the Secretary of State for Health agrees to recognize as a transferring scheme

  • a registered insurance company to purchase an annuity contract, which satisfies the requirements of HMRC ("Buy-Out Bonds")

  • a registered personal pension plan, including a stakeholder pension arrangement that is either:

    - approved under Chapter IVof Part XIV of the Income and Corporation Taxes Act 1988 and on 6 April 2006 became a registered pension scheme for the purpose of the Finance Act 2004; or

    - established as a registered pension scheme, for the purpose of the Finance Act 2004, on or after 6 April 2006, which the Secretary of State for Health agrees to recognise as a transferring scheme or possibly a combination of
    these.

A transfer is normally possible if:

  • your new pension arrangement is registered with HMRC, and
  • your new pension provider is willing and able to accept the transfer payment, and
  • you leave the NHS Scheme in all your employments.

If your new pension scheme is contracted out of the State Second Pension Scheme (S2P), like the NHS, you will normally be able to transfer all of your pension rights. If your new scheme is not contracted out it may be unable to accept some or all of your NHS transfer value. If this happens you may still be able to defer these rights in the NHS Scheme for payment when you retire or transfer them to an appropriate registered
personal pension or a registered insurance company to buy a Section 32 Buy-Out bond. If you are unsure whether to transfer your NHS pension rights or who to transfer them to, you are advised to seek independent financial advice,