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opt out form

Discussion in 'Retirement' started by brook123lyn, Dec 8, 2019.

  1. brook123lyn

    brook123lyn New commenter

    Hi all

    So, filling in opt out forms today and come across "Enrollment Date" question. OH has been in TP scheme for 34 years but joined current employer in 1991. Question is...
    "Enrolment Date
    This is the date you were most recently enrolled with your current employer, for example your auto-enrolment date. If you’re unsure of what this is, please ask your employer."

    Can anyone please enlighten me so I can proceed without cocking up !

    Thank you team.
  2. 50sman

    50sman Lead commenter

    I know what I think but best to ring TP in the morning - they will have the sorest answer
    Also read through the form so you can ask all the other questions you may have at once!
    Marshall likes this.
  3. diddydave

    diddydave Established commenter

    There was a recent post from someone in a similar position, they had to complete a paper form and give it to their employer. I don't think they told us where they got the form from.
  4. brook123lyn

    brook123lyn New commenter

    thank you both - I will ring them tomorrow.

    The problem is 50s man I cant proceed to see what the next question page may be until I have done this one. I nearly made up a date just to get through and see but honestly with my luck I would accidentally commit us to something completely wrong and spend weeks unpicking it - that's me and technology :/
    I did google it and got to another page to "help with your enrollment date" from a Pensions site but I didn't have the right info to fill that in to help me either (doh!)
    I feel so doggone tired at the mo everything seems so hard to do- two more weeks til christmas and then relax hopefully. To think this time next year ........ ( dreams of lie ins /dog walks/papers and tea/ pub lunches/ enjoying making plans (instead of planning as a chore)/travel/gardening (which I've only just discovered) time to do/be

    thanks everyone - anybody else got recent experience of opt out ?
  5. 50sman

    50sman Lead commenter

    Sorry OP having re read your posts I am confused
    Do you want to opt out of then pension scheme until you retire at some date in the break future or do you want to apply for ARB or your pension in full

    As you say you have 34 years service I assume you are near retirement from your second wishful post

    My advice however is still ring TP in the morning - they have the answer.
  6. brook123lyn

    brook123lyn New commenter

    Hi 50s man
    OH and me both retiring this Summer :) Opting out of TP scheme now because our best years (days) are falling rapidly and we'd be losing more money. We are trying to lock in our best 3 years now Dec 2009-2012 . As Diddydave says in another post, it feels counter intuitive to stop contributing but I've crunched the numbers and its true- we would be contributing another 8 months to (£509 between us/ month) to get a slightly worse pension .We will then take ARB from September. Death benefit seems to be the only downside .
    I will ring them - they have been helpful this week
    thank you
  7. cornflake

    cornflake Senior commenter

    You only need to opt out for one month to secure the hypothetical calculation... you can opt back in again after!
  8. coolhands

    coolhands New commenter

    I had the same problem and wrote this: “Since I don’t know what that is I put the first date of employment when pension contributions started as I think that’s what it means.”
    It was accepted and we got the opt out message accepted from Dec in our case. I suspect it probably doesn’t matter as long as you didn’t start the pension within the last 2 years (I think I read something about 2 years somewhere....!)
  9. brook123lyn

    brook123lyn New commenter

    Hi cornflake
    very interesting - would that then put us into the CARE scheme? Wonder if that would be worth it for us for 7 months ? I’ve not really thought about this route because we were tapered and jumping with ARP so don’t understand that “side” of the pension divide
    Thank you
  10. brook123lyn

    brook123lyn New commenter

    Oh thanks coolhands that’s very helpful :D
  11. Dorsetdreams

    Dorsetdreams Occasional commenter

    I put the date we converted to a MAT. I have a feeling that the input is totally ignored if it isn't very recent. They do, after all, have the data - unless it is very recent.

    I got the opt-out confirmation letter in under a week.
  12. cornflake

    cornflake Senior commenter

    I guess you'd actually have to do the sums to be sure... but probably better to be in CARE than not in TPS at all, as I believe you get an additional enhancement to inflation rises if you are contributing. diddydave is your best man to answer that question!
  13. diddydave

    diddydave Established commenter

    Opting out and back in again doesn't automatically put you into the CARE scheme.
    As a 'tapered' member the date you move into the CARE scheme is fixed (this link has the dates: https://www.teacherspensions.co.uk/...~/media/93CC7173567A46B2A3D99E4D242FCEE9.ashx )

    Being this close to your retirement (Aug 2020) it probably doesn't make sense to opt back in if you are going back in to the Final Salary scheme as you won't have time for your actual final salary to rise enough for that extra service to be added to the final salary calculation.

    The CARE scheme isn't bad so you might want to see if you can go back in at the time when you are moved into it.

    Also, you can consider that the money you would have been paying in to the pension will be taxed unless you put it into another pension. There is the additional pension flexibility you can add, the AVCs or your own private pension...or you could just enjoy the extra cash (albeit 80% of it). The tax efficiency of doing this is quite significant...take your 8 months @ £500 as £4000. If you keep the money you'll be taxed at 20% (double this if you are in the higher tax bracket), which is £800 tax, so you get £3200 in your pocket. Put that £4000 into a pension fund though and you can, in September, cash it all out. You get 25% tax-free and pay 20% on the rest, £1000 tax-free and pay £600 tax - £3400 in your pocket. By waiting 8 months for the money you have gained £200.
  14. brook123lyn

    brook123lyn New commenter

    Thank you all so much for your replies team . I appreciate your maths particularly diddydave as I know other members do . So much to think about but at least I do feel far more informed by being a member here.

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