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Early pension and JSA

Discussion in 'Retirement' started by kty, Mar 1, 2016.

  1. kty

    kty New commenter

    Take care if you may be faced with a period of unemployment but are already drawing a (reduced) teacher's pension. Having taken a reduced teacher's pension at 55, I was able to fnd part time work for some time. When that finished and I was looking for work, I applied for JSA based on 35 years of NI contributions. This is a non means tested benefit based purely on contributions. Except it isn't. Because if you have been prudent enough to pay into a private pension and are currently using that to survive, your JSA payment is reduced pound for pound if you receive over £50 per week, bringing your JSA to zero.

    In addition, your state pension statement shows that your entitlement is also affected quite considerably, in my case a reduction of nearly £160 per month. If only I had known, I could have used my hefty pension contributions to invest otherwise, be receiving the JSA that I had paid in for over 35 years and be due to receive the full state pension.
  2. Guest

    Guest Guest

    I am sorry but I cannot totally sympathise with your situation. You chose to take your pension at 55. Most people are unable to do that. Unfortunately your part time work finished but I personally think it is unreasonable to claim JSA after having retired. If it was partly the result of redundancy I would be more in favour. As for the not receiving the full pension that is not entirely true. Throughout your time as a teacher by being contracted out you paid less NI and were fortunate enough to be part of a very good pension scheme indexed for life. We are not affected by stock market crashes etc.... You will get more or less the same pension as most people get now but not the full rate. From April nobody will be contracted out but as a result our NI contributions will rise. However this will allow those still working to pay towards the new pension. Your so called 'hefty' contributions have bought you a more secure pension that most people can aspire too.
    applecrumblebumble and lindenlea like this.
  3. Guest

    Guest Guest

    The pension I am referring to about the NI contributions is the state pension to prevent misunderstanding.
    lindenlea likes this.
  4. Yoda-

    Yoda- Lead commenter

    Unfortunately Pensions are counted as income. It's not surprising that the JS allowance is reduced. Sorry to hear that the work you did to supplement your pension has dried up.
  5. applecrumblebumble

    applecrumblebumble Lead commenter

    There is always supply or some other work outside teaching but as far as JSA all has been said. JSA is for people with no income and they do not make it easy to get it. I have paid 45 years of NI contributions and I know my state pension has been reduced by reduced NI contributions during my years as a teacher. As no longer a user says thank your lucky stars that you have an index linked pension in addition to your state pension eventually.
    lindenlea likes this.
  6. phatsals

    phatsals Senior commenter

    Your state pension has not been reduced, you haven't made additional contributions to it. Instead you paid your contributions to the generous TPS and also received a tax reduction for it.

    You can't have your cake and ha'penny. Thank your lucky stars you don't need to live of JSA at £75 pw. If JSA is reduced pound for pound after £50 then you have over £125 pw pension.
    wanet and lindenlea like this.
  7. annsue

    annsue New commenter

    On this point of " contracted out" - I took my teachers pension at 58 due to ill health . My payments have of course been reduced due to this. I have had a statement regarding state pension -
    I have 43 full years contribution and 7 years more to contribute . With current contributions I will receive £119 pw, state pension: if I continue contributions I will get £147 pw. Can anyone advise whether contributions will be paid if I get med notes or sign unemployed?
    I also have a COPE estimate of £61.65 pw. Is this already included in my Teachers Pension of approx £200 pw ( I was contributing into scheme for 17yrs) I think the COPE is what the Teachers Pension have saved up for me as I contracted out of the additional pension. It's all very bewildering!
  8. phatsals

    phatsals Senior commenter

    Have you actually checked this on the State Pension forecast? £119 is flat rate current pension and you should have a tiny bit more for SERPS etc. In terms of the additional amount going forward, you could pay your own contribution if you think it worthwhile, ie how much would it cost for each year with a return of approx. £4pw.


    I don't know what COPE is, however I don't know if you would get anything signing unemployed, you may get NI contributions but you would also be bullied to within an inch of your life to get a job - it is a very unforgiving system these days. You should be able to claim some form of sickness/incapacity/universal credit if you health is poor, for this I would visit CAB for support.
  9. annsue

    annsue New commenter

  10. annsue

    annsue New commenter

    Cope is "Contracted Out Pension Equivalent" When we all opted out , Teachers Pensions took a little extra from us and saved it up. My state pension forecast( according to gov web site) is £119.30 and if I continue to pay contributions til I'm 66 this will be £147.75. As I am already claiming Teachers Pension I just wondered if the COPE is included in what I already have, or if I get that added to state pension when it is paid in 2022. The COPE stuff is explained on the gov website.
  11. phatsals

    phatsals Senior commenter

    This would be in with your teachers pension.
  12. FrankWolley

    FrankWolley Star commenter

    If you retire, you retire. Not sure it's moral to claim a benefit designed for those out of work (such as JSA).
  13. Jolly_Roger1

    Jolly_Roger1 Star commenter

    When I signed on, I knew I wouldn't get any benefit as my wife worked. I only did it to keep up my NI contributions. I needn't have bothered, as this didn't happen. One of the questions I was asked was whether I had a pension that I could start receiving.
  14. Piranha

    Piranha Star commenter

    After I was made redundant, I applied for JSA, but had to wait some time because of my redundancy pay. I started a new job before I became eligible. What really rankled was signing on every week to become eligible later, and having to beg to come in at a different time so I could attend an interview.

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