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Resignation, Teaching pensions and student loan replayments - Going overseas

Discussion in 'Pay and conditions' started by jojoritson, May 2, 2011.

  1. Hi there,
    After two years of teaching I am heading to Australia to start a new life over there and do supply teaching. Don't suppose anyone knows what happens in terms of paying pension payments and student loan repayments when you go overseas?
    Thanks
    Jo
     
  2. Hmm, not sure what happened there - if this shows up twice (one not finishd) sorry about that - laptop going a bit crazy.
    If you want to transfer your TPT to your Aussie Super (their version of a pension - I don't know how much you already know about life down under), then you can do so and generally be a winner - we pay tax when we draw our pensions, they pay tax when they pay in, so you will have paid in tax free and will draw it tax free (hurrah!) - although as you have paid so little in it might not be that beneficial really. The alternative is to leave it where it is, incase you come back or want to draw the pension when you reach pensionable age, or (as other poster says due to the 2 year thing) you can have it all back as a lump sum in the UK, although this will be taxed (which is annoying - so if you are planning on doing that probably better to transfer it to Australia).

    Student Loans depends on when you had one/what style it is - technically you have to pay all types back even if you go overseas - if you go onto their website apparently there is a form, or they will tell you, how much you need to earn overseas before you reach the payback threashold. If you have an old old style loan, you don't offically have to pay it back whilst you are living overseas (however if you have only been teaching for 2 years, I'm guessing you have the post 1997 version, which is the new style). You have to contact them and let them know you are moving, and they will tell you how much they want you to pay them each month, and the details of the account to pay it into, which you sort out once over there. Or just not bother if you are 100% sure you are never coming back - they have stolen enough money off plenty of people and don't play by the rules might be your way of thinking (not that I think like that, of course) - however, I know loads of people who were so so sure they were never coming back, and they did. So not perhaps the best course of action.
    Best idea is to contact them, tell them your income is AUS$0 at the moment, and you'll let them know when it changes, and then let them know if/when it does - not 100% sure of the rules of paying back and threasholds etc for new style loans (I'm a dino and all mine are old style loans), but I believe if you aren't earning anywhere in the world, they allow you to defer.
     

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