Kathryn V

Bermudashorts, please could you let me know why you would not recommend transferring the defined benefits NHS pension to Australia?

Kathryn V

Scotty1, I have tried to search for 'Go Matilda' without success, can you direct me to her?

Bermudashorts

So I would not transfer because I have a low risk tolerance and I like the certainty that comes with a defined benefits scheme. The employer takes all the investment risk rather than you. Your pension payments are known, regardless of investment manager performance and investment markets.

Move it and you are dependent upon the investment performance of the funds that will be will invested on your behalf. As I already said, don't let this become a tax decision, you could be taxed twice and still be better off.

Kathryn V

Yes "Bermundashort" I am a cautious person and I like the idea that it is a guaranteed pension for the rest of my life, it does not run out! I have also heard of superannuation funds here crashing with the markets. I think that you should spread your risks and I do not believe that having all your money tied up in an Australian super is the way to go. We also have property in the UK and here. I feel that the main negative is, when I die, my husband does not get a penny of that pension if we are still living here when that happens.

Grayling

That is the first i have ever heard of that....please explain

Bermudashorts

It isn't just about crashing either, it could just be globally low investment yields or investment manager underperformance.

On the other hand, if you do stay in Australia, it means you are getting this income stream in £ and are subject to fluctuating exchange rates.

Kathryn V

Perhaps this has been an over exaggeration from colleagues, it appears that reduced benefits will be paid from the UK pension scheme. However, whether in the UK or not, no lump sum is paid the to the surviving partner, unless the scheme pensioner dies within 5 years of retirement (it is a reduced amount that is paid as well). The surviving partner gets a short term pension of 3 months (6 months if they have one dependent child). After the short term pension, the surviving partner then gets a survivor's pension of half the amount the scheme pensioner received. However, I am now not sure if this is paid when the surviving partner lives in Australia. Does anybody know for sure?

Kathryn V

Yes, this was also one of the negatives, but unless you are relying in this money to live on from month to month, you can choose to bring the money over when the exchange rate is better. I do that with rental income from the UK now.

Grayling

Well that is news to me and i have been getting the pension for over 10 years.

I can not find anything to suggest that there is any change to arrangements if you are living overseas? Have you a link for this or is it just hearsay?

Kathryn V

This information is from The NHS Pension Scheme booklet - 'Guide to the Scheme' which I have. Actually, the information I quoted relates to the scheme pensioner dying after retirement. There is a section, which is very similar, relating the payments when the scheme pensioner dies before retirement.

I also found this PDF, which covers it all, but not obvious mention of surviving partners living abroad:-

http://www.nhsbsa.nhs.uk/Documents/P...ookletR(2).pdf

Kathryn V

Here is another 2 links as well:-

http://www.nhsbsa.nhs.uk/Documents/P...-_08_2014_.pdf

http://www.nhsbsa.nhs.uk/Documents/P...s_V4_09.13.pdf

Grayling

There is nothing to say that any benefits would not be paid if you are living in Australia

Grayling

There is nothing in those links which is affected by living overseas

Another good reason to leave you pension where it is is that you already have 20 years contributions which will pay a quarter of your salary when you retire.....this is uprated each year..
My pension is now higher than my salary was when i retired.

You will be hard pushed to get that return elsewhere

john in oz

What I think kathryn is trying to point out is that there are death duties on a pension in the UK currently at 55% proposed to reduce to 40% with the new changes in April next year.

NHS is indexed at a rate of CPI capped at 5%. Average CPI over last 20 years is approx 2.2 %.

These are considerations among other things to take into account.

Grayling

That does not apply to NHS pensions as there is no 'pot' to pay death duties on

Any nominated survivor does continue to recieve a pension for life...in the case of a surviving wife or husband, for example, it is 50% of the pension