Deferred Benefits
What are deferred benefits?
If you have two or more years qualifying membership, or less than two years, with pension
rights previously transferred from a personal, money purchase or stakeholder pension, you
can choose to defer your benefits; i.e. leave benefits in the Scheme for payment when you
reach your normal pension age.
If you leave the NHS before you reach pensionable age and do not transfer the benefits to
another pension scheme, you will become a 'deferred member’. This is because payment of
pension is 'deferred' until normal pension age.
Deferred main Scheme benefits are increased each year by the rate of inflation to protect
their value and will normally be paid when you reach age 60 for the 1995 Section or 65 if in
the 2008 Section.
You do not need to apply to defer your benefits. NHS Pensions will automatically write to
you to confirm deferment if you do not rejoin the Scheme within 12 months of leaving.
If you do rejoin the Scheme within 12 months, your membership will link up and all your
membership will count in one calculation when your retirement benefits are worked out.
Should you die before or after you retire, life assurance and family benefits may be payable.
Note - All deferred members should be aware that the measures by which their pension benefits
are uprated to protect against inflation have changed. From 1st April 2011 all future uprating will
be done using the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI). All
uprating for years before April 2011 will continue to use the Retail Prices Index (RPI).
How do I claim my Deferred Pension Benefits?
Deferred benefits are normally paid at age 60 for 1995 Section members and 65 for 2008
Section members. You can claim your deferred benefits by completing the application form
AW8P approximately 3 to 6 months before you reach pensionable age.
You will need to download and print off the following:
AW8P – Deferred Benefits claim form and guidance notes held in Pension Scheme forms.
Census Form – An Equal Opportunities monitoring form .
Deferred benefits factsheet (07/13) (V2)
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Retirement Booklet – You do not have to print off this booklet but you should read it before
claiming your deferred pension benefits.
Note - If you live abroad please read the overseas bank payments letter and complete the
bank mandate form applicable to the country your bank account is held in. The bank
mandate forms can be found with the AW8P application form.
All the above forms can be found in the Pension Benefit Application section.
Early Payment of Deferred Benefits
If you leave the Scheme with deferred benefits on or after 31 March 2000 and are aged 50*
or over, you may be able to claim your deferred main Scheme and any NHS AVC benefits
early, provided you are no longer in NHS employment. Your benefits will be reduced to
cover the extra cost of being in payment longer.
(*If you joined the Scheme for the first time on or after 6 April 2006, or previously left the
Scheme before 31 March 2000 with deferred benefits and rejoined again on or after 6 April
2006, the minimum age that you can retire will increase to 55 with effect from 6 April 2010).
You cannot take your deferred benefits early in this way if you left the Scheme before 31
March 2000.
To claim the early payment of deferred benefits you need to complete the AW8P application
form available in the Pension Benefit Application section.
Ill Health Retirement
If you become permanently unable to do any regular work because of ill health before your
normal pension age, we may be able to pay your deferred benefits early. If this happens to
you, download form AW240 from the Pension Scheme Forms section. Pension Credit
Members should use form AW240(PC).
Instructions on what you need to do are provided with each form and they can be
downloaded from the Pension Benefit Application section.
Redundancy retirement
If you are made redundant before age 50 and are a qualifying member of the special
classes; i.e. you have Mental Health officer (MHO) and or Special Class status, we may be
able to pay your deferred benefits at age 55.
Note to all current deferred members:

Lump sums paid after age 75
Since the introduction of the current pension tax regime on 6 April 2006, there have been
taxation issues for members or their dependants who are paid a lump sum from a
Registered Pension Scheme, such as the NHS Pension Scheme, once you reach 75 years
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old. This includes a retirement lump sum (the pension commencement lump sum) paid on
or after your 75th birthday or a lump sum paid in the event of your death if aged 75 or over.
Any lump sum paid after a member has reached age 75 was an unauthorised payment with
the member or the recipient being taxed at a rate of 55% on the lump sum paid. Because of
this the NHS Pension Scheme Regulations were amended to permit the commutation of the
retirement lump sum to an extra pension.
The Finance Act 2011 made certain amendments to lump sums paid after age 75 and as a
result the NHS Pension Scheme Regulations were amended on 28 November 2011.
Where a member was age 75 on or before 5 April 2011 the existing rules apply. However,
where the member is age 75 on or after 6 April 2011 new rules now apply.

If you rejoin the NHS Pension Scheme after a break of five or more years.
If you left NHS employment and deferred your NHS Pension Scheme membership five or
more years ago, you will join the 2008 Section of the Scheme if you return.
If these circumstances affect you, you will receive one opportunity to transfer your
preserved 1995 section pension benefits into the 2008 Section on a cash equivalent
transfer basis.
If you left NHS Employment before 1st April 2008 and subsequently transferred your
benefits to another pension scheme, and you to return to NHS Employment after a break of
five years or more, you will not be able to rejoin the 1995 Section and will instead join the
2008 Section.
Additional information regarding the 1995 and 2008 Section differences can be found in the
Scheme Guide held on the home page.
Some Frequently Asked Questions
Q
What if I decide to leave the Scheme but remain in the NHS?
A
If you are considering leaving the Scheme but staying in your NHS job, please make
sure you fully understand what you are giving up, before making your final decision.
Speak to your Pension Officer or employer and seek independent financial advice.
More information can be found in our Opting-Out section
Q
Do I receive confirmation that my benefits have been deferred?
A
Yes, approximately 13 months after leaving the Scheme we will
automatically write to you to confirm deferment has taken place.
Q
Can I add to my deferred pension benefits?
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A
No, once you have left the Scheme you cannot continue to contribute,
request a transfer from another pension provider or buy additional pension.
Important note:
You need to keep us up to date with your current address so that
we can write to you to confirm deferment.
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