How to reclaim NHS pension

Want to know how to reclaim NHS pension? Well listen up because we’re breaking it all down for you!

Whether you’ve left the NHS or just decided to opt out of the NHS scheme for whatever reason, you may be able to reclaim your NHS pension.

When you start working for the NHS, you’re automatically enrolled. The amount that you pay into the pension depends on how much you earn. 

Take a look at this table to see what you’ll likely be contributing in the 2024/25 tax year:

Reclaim NHS pension – how does it work?

There are three pension schemes to be aware of:

• 1995 pension scheme
• 2008 pension scheme
• 2015 pension scheme

If you are part of either the 1995 or 2008 scheme, you’re allowed to claim a refund if you’ve been at the NHS for two years or less. You’ll also have to accept a refund if you take a 12-month break from service, or longer. 

If you’re part of the 2015 scheme, this period is a little longer. If you take a break for five years or more, you’ll be obliged to accept a pension refund. 

Can I avoid reclaiming NHS pension?

Sure!

If you’ve left the company for either 12 months or 5 years (depending on which scheme you were enrolled onto), there are ways that you can avoid being removed from the pension scheme. 

This can be as a result of temporary work, long term illness, training and more:  

• Keep paying pension contributions when you’re on maternity leave
• Return to an NHS role during the 12 month/5 year period – but remember that agency work will not qualify you for the pension scheme
• Transfer your benefits to another scheme
• Get approval to avoid a break in service from training, work or even illness 

Am I eligible?

If you’ve worked for the NHS for longer than two years, you’re unfortunately not eligible to apply to reclaim your NHS pension contributions. If you worked there for less than two years but you transferred a personal pension or retirement annuity contract over, you are also not eligible. 

You will need to be younger than the pension age and you can apply immediately after leaving the NHS.

You can also apply if you’re choosing to opt-out of the scheme whilst working there.

How to apply 

Once you’ve left the NHS, you’ll be able to apply for a refund of contributions straight away.

If you don’t apply, the pension agency will get in contact with you once you’ve been on a break long enough to disqualify you from the scheme.

• To apply in England and Wales, click here

🚨 Things to consider before reclaiming NHS pension:

• All pension benefits built up so far may be lost
• Employer contributions paid to the scheme are not refunded to the member
• The refund is taxed at 20% if less than £20,000 and 50% if more than £20,000
• There may be extra National Insurance contributions to pay

To read more about pensions and how they are taxed, take a look at our guides.

Need professional tax advice about your NHS pension?

You’ve come to the right place! Our accredited accountants are more than happy to answer all your questions about tax – find out more here.