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Pension query

Discussion in 'Retirement' started by stebo, Jan 24, 2019.

  1. stebo

    stebo New commenter

    Hi, looking for some advice. I am 60. I recently left my permanent post and withdrew my pension. I recently accepted a part-time position, one day a week at another establishment. I don' know how long this position will last, it will definitely be 6 months and posssible a couple of years. The establishment enrolled me in the pension scheme. Is it worthwhile enrolling for a short period of time and only on a part-time basis or would it be simpler to request to withdrew from the scheme and avoid the monthly deductions?
     
  2. HelenREMfan

    HelenREMfan Star commenter

    I would have thought that you should have been consulted as to whether you wished to contribute/continue paying in to a teacher pension. Back in 2009 when I took on my current part time, zero hours contract, without seeking advice essentially I opted to pay in. Here I am 9+ years on still paying. I did think that the death in service aspect was maybe a 'good thing' though I have never asked critical questions about that being on the kind of employment footing that I am. I will watch with interest to see if anyone has far better knowledge/understanding than me. I also wonder what I might have to do should I decide to access this part 2 teacher pension I have accrued. I can see some figures on the teacher pension website but..... am not all that sure what it means.....
     
  3. diddydave

    diddydave Lead commenter

    No expert but I think you need 1 year in the scheme to access benefits, and I believe you are now in the new scheme (ASAR) having effectively started again. I'd phone them and check if you'd get any benefits.

    If you decide to withdraw it might also be worth seeing if you can negotiate a raise seeing as the employer is going, if you stay in the scheme, to have to pay over 20% into it...

    Your pension can be affected even if you do opt-out, I think you need specialist and expert advice: https://www.teacherspensions.co.uk/members/faqs/re-employment/returning-to-work.aspx
     
    Last edited: Jan 25, 2019
  4. Sundaytrekker

    Sundaytrekker Star commenter

    One day a week is unlikely to affect your current pension as this might only happen if your salary of reference on retirement is exceeded by your pension plus new salary. Do check the sums.

    You don’t get consulted now as it’s an automatic opt in. You can opt out if you wish.

    As above, you will need more than one year’s service to access your new pension but, if it is less then they calculate a different payment instead so your contributions are not just lost.

    I wouldn’t think any school will pay you more if you opt out of the pension, it’s just a saving in their budget.

    The contributions are relatively small and tax free . Every bit of extra pension in the future is worth it, in my opinion.
     
    Dorsetdreams and lindenlea like this.
  5. stebo

    stebo New commenter

    Thanks for all the advice, that’s very helpful. It looks like it’s worth paying into as I can withdraw it at any point in next couple of years, so it acts as a savings account with some life cover.
     
  6. Sundaytrekker

    Sundaytrekker Star commenter

    You will be paying it in under the career average scheme. If you access the benefits before your new Normal Retirement Age (probably 66) there will be an actuarial reduction. Probably best to plan to leave it till that age or close to.
     
  7. Guest

    Guest Guest

    I have returned to teaching after taking AAB just over a year ago. I am paying into the new career average scheme. I am hoping to add between 600 and 1500 a year to my pension at the age of 66 (My state pension age). Final amount will of course depend on how long I continue to work and for what proportion of the teaching week. That amount extra per annum index linked for life makes it a no brainer for me.
     
    lindenlea likes this.

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