The NHS Pension Scheme - Overseas Membership

Overseas Members

One of the most common questions raised by overseas members of the NHS Pension Scheme is what happens if I leave the NHS to live in another country?

If you have less than two years service at the point of leaving you will receive a refund of your contributions which will be subject to a tax charge.

This is calculated as follows:

20% tax with respect to the first £20,000 refunded

50% tax with respect to amounts over £20,000

If you have more than two years service at the point of leaving you will be entitled to "Preserved Benefits". This means the pension benefits accrued at the point of leaving will be calculated, preserved and then revalued up to the point that you take your benefits. Revaluation broadly means that the purchasing power of the preserved pension is given some protection against the effects of inflation.

If a member wishes to consider transferring their NHS Pension Fund to another pension in their own country of residence, they can do this if the receiving scheme meets with Qualifying Recognised Overseas Pension Scheme (QROPS) rules.

This is a highly complex area as it involves an understanding of overseas pension rules and there are currency risks. It is therefore strongly recommended that you seek Specialist Financial Advice before considering a transfer to a QROPS arrangement.

 

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