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Opting out of TPS

Discussion in 'Pay and conditions' started by DaisysLot, Apr 10, 2011.

  1. DaisysLot

    DaisysLot Senior commenter

    There maybe a 28 day turn around in processing - Quite an unwise move though....
  2. Why do you say that? In my situation its the best thing I can do
  3. phatsals

    phatsals Senior commenter

    Because your 6.5% contribution attracts tax relief and lower NI. Although you will see an increase in your wage slip it won't be as high as you think, you will also be saving your employer 14% of your salary as they won't be making their contribution to your pension.
    Long term you are reducing your very generous pension, although when money is tight it may be the only way you can increase your income. As soon as you can opt back in.
  4. coppull

    coppull New commenter

    You will be increasing your National Insurance contributions,not just the 1% increase that all other teachers are going to pay extra this month.
    Did you not seek advice on this matter and check out the facts before you opted out?
    Free information has been given out many times on this topic on the Forum
  5. Thanks for the replies.
    It was a well considered decision , I know its an excellent pension scheme, but as I intend to leave teaching after I am made redundant this year I thought the extra £500 I'd gain would help in the short term.
    I will hopefully transfer the money into a new pension scheme eventually.

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