1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

Transfering another pension

Discussion in 'Pay and conditions' started by modgepodge, Dec 10, 2011.

  1. modgepodge

    modgepodge Established commenter

    I had a job with a reasonably generous pension scheme before I did my PGCE. I worked for 2 years, and my employers started contributing after 6 months, at 7%....I earned a minimum of £21k (monthly bonuses make it hard to work out what I earned off the top of my head) during that time, so by my reckoning I must have at least £2200 in it. I THINK it was with Standard Life. The documents must be somewhere, but I have a nasty feeling they have the wrong address for me (I've moved around a bit).
    So, what do I do with it? As I haven't really worked since I left that job in Sept 2010, I've kind of ignored it, but I'm assuming the money is still sitting there, mine when I turn 65 or 82 or whatever the pension age will be when I retire. What should I do? Can I transfer it in to the TPS, and if so, should I? Or can I have 2 pension schemes?
    *Confused*
     
  2. modgepodge

    modgepodge Established commenter

    I had a job with a reasonably generous pension scheme before I did my PGCE. I worked for 2 years, and my employers started contributing after 6 months, at 7%....I earned a minimum of £21k (monthly bonuses make it hard to work out what I earned off the top of my head) during that time, so by my reckoning I must have at least £2200 in it. I THINK it was with Standard Life. The documents must be somewhere, but I have a nasty feeling they have the wrong address for me (I've moved around a bit).
    So, what do I do with it? As I haven't really worked since I left that job in Sept 2010, I've kind of ignored it, but I'm assuming the money is still sitting there, mine when I turn 65 or 82 or whatever the pension age will be when I retire. What should I do? Can I transfer it in to the TPS, and if so, should I? Or can I have 2 pension schemes?
    *Confused*
     
  3. jubilee

    jubilee Star commenter

    Are you in the Teachers' pension now and, if so, fo how long have you been a member?
    You can transfer a previous compatible pension into the TPS but it has to be done within 12 months of joining the TPS. The same rules apply for transferring a pension into any other occupational pension scheme.
    You need to locate your previous pension. The first port of call might be HR at your previous employment.
    Then you contact the TPS and ask for the forms to request a transfer quotation (not binding). If you haven't started in a teaching post yet, sort out your previous pension and contact TPS as soon as you start teaching.
    You send paperwork to your old pension scheme and they complete it nad send it to the TPS. If the schemes are compatible the TPS will tell you how many years your previous pension years are worth in the TPS.
    They won't give financial sdvice on whether transferring is a good move or not. Seek that independently. It's normally considered worth transferring if you expect your final salary in your new career to be superior to the pay in your last job.
    Once you have the quotation, you have until just before the end of your first year in the TPS to transfer the other pension in.
     
  4. jubilee

    jubilee Star commenter

    You can have as many pension plans as you like. They would each pay out a partial pension on retirement. The difficulty is keeping track of them all over 40+ years and keeping them updated when you move.
     
  5. modgepodge

    modgepodge Established commenter

    Thanks Jubilee. Sounds like the best thing would be to transfer it, as my previous job paid probably around £26k including bonuses, I'd hope to finish teaching earning more than that (though who knows?!) As you can probably tell, paperwork isn't realy my strong point (I don't throw "important" documents away, just shove them in a drawer in now particular order.....) so keeping track of more than one pension for 40 years is probably not for me.
    I haven't started teaching yet - my NQT post starts in January. BUT back in September I did 2 days supply in a Gloucestershire school, booked direct through the school and paid through the LEA. When filling in the form for being paid (a standard teaching Glos one, nothing specific to supply) it said "Have you opted out of the TPS?" to which I put no, and then when I got my pay slip they'd taken £7 for pension contributions. Does this mean I'm in the TPS?? I haven't filled in any paperwork other than the forms mentioned above - nothing specific to a pension.
     
  6. jubilee

    jubilee Star commenter

    modgepodge - your membership of the TPS has already started so you don't have to wait until you start your permamanent job to get the transfer value or even to action a transfer.
    You only have a year from when you became a member of the TPS to action the transfer. Contact TPS and ask what the exact date was for your membership starting and also request the paperwork. You will need your teacher registration number (the one with your GTC registration).
    As for your last salary, with bonus, being about £26k, it's worth finding out if that is the amount on which your pension contributions and eventual payout were/would be based. Mr jubilee worked until recently (early retirement) in a job that had a significant bonus element. His pension deductions and his pension payout were all based on basic pay only ... and his was a final salary scheme, not unlike the TPS. If your old scheme is the same, you would be inline for a retirement payout based on perhaps £21k (?) or whatever your pay was before bonuses.
    If you anticipate earning more than £21k( at last year's value) in teaching, transferring in would seem to be advantageous. When you get the paperwork and the transfer figures, consider seeking an independent financial advisor if you need the ramifications of transferring fully explained.
     

Share This Page