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pension opt out and refund?????

Discussion in 'Pay and conditions' started by miss food, Dec 9, 2011.

  1. If i opt out of the teachers pension and i ve been paying in for 10 yrs. Will i be able to get a refund on monies paid in????
     
  2. If i opt out of the teachers pension and i ve been paying in for 10 yrs. Will i be able to get a refund on monies paid in????
     
  3. Don't think so:
    "Can I have a repayment of contributions?
    + Members who have not already retired and <u>have less than 2 years&rsquo; service</u> can take a repayment. You must have been out of service for more than a month."
    (from http://www.teacherspensions.co.uk/resources/pdf/Fact%20Sheets/Leaving%20Pensionable%20Employment.pdf)
    http://www.teacherspensions.co.uk/members/members_faqs.htm
    You can transfer your pension to another scheme, if that helps in your specific situation at all.
     
  4. jubilee

    jubilee Star commenter

    No.
    You can only get a rebate of contributions if you have under 2 years in the scheme. When you claim back that lower membership amount, you have to pay tax (20%) and extra NI on the refunded money. Yiou basically pay the tax and higher rate of NI that you would have been charged on the original earnings if you had never been in the pension in the first place.
    Your options with a longer contribution record are to leave it where it is until you reach pension age (60 in your case (Not 65) as you must be in the old TPS) OR claim it early from age 55 to just short of 65yrs (with an actuarial reduction) OR transfer it into the pension scheme of another career that you might have in the future.
    For the latter option you should definitely seek financial advice as the final salary payout from the TPS may be worth more than the transferred -in benefits of a new scheme.
     
  5. You can opt out of the Teachers Pension but you can <u>not</u> out of paying into a pension.
    The options are;
    1) Stay in TPS with employers contributing 14.1% tax free.
    2) Pay into the Second State Pension without any employers contribution.
    3) Pay into a private pension without any employers contribution.
    It is very unlikely that any private pension will take on teachers due to the massive compensation claim they would face when the teacher sees how much money they are losing by opting out.
     

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