Pension newbie... Do I join my employer pension scheme?

G_Model101

I've never really thought about a pension before and as I start my first "real" job, I have the opportunity to join their pension scheme. It's for local government and they will obviously be contributing a percentage, is there any reason why I shouldn't join this kind of scheme?

I can't imagine I will retire at this company, so what happens with these pensions if I leave well before retirement age? Can I just cash it and get the money back or will it just pay out when I hit retirement age?

ClareEmily

I have moved jobs 3 times and each time I have joined a company pension scheme, when I leave I transfer the pension scheme to my new company's scheme (I have a little pension man who comes into the office and sorts it for me).

You can NOT cash them in, before retirement age.

Andy_L

G_Model101 wrote: »

I can't imagine I will retire at this company, so what happens with these pensions if I leave well before retirement age? Can I just cash it and get the money back or will it just pay out when I hit retirement age?

With the local gov scheme if you leave with less than 2 years service (or possibly 6 months -ISTR the rules have changed recently) you can get back your contributions (ie less the tax relief & employers contributions),
Alternatively you can leave it with the local gov wher it will increase with inflation or transfer it to a different scheme, either a private scheme or, if offered, your new employers scheme

DiggerUK

G_Model101,
The LGPS scheme is the best pension going, and the only pension scheme worth paying in to, as it is index linked, and final salary based. Avoid any other schemes.
Don't ever cash it in, it's the most valuable benefit of your job. You should consider a career in LG because of that one simple fact.
Ask around at work, and check with your union rep.

Best of fortune.

bendix

DiggerUK wrote: »

G_Model101,
The LGPS scheme is the best pension going, and the only pension scheme worth paying in to, as it is index linked, and final salary based. Avoid any other schemes.
Don't ever cash it in, it's the most valuable benefit of your job. You should consider a career in LG because of that one simple fact.
Ask around at work, and check with your union rep.

Best of fortune.

Terrible advice and you should be chastised for throwing ill-informed generalisations around so freely.

jem16

DiggerUK wrote: »

G_Model101,
The LGPS scheme is the best pension going, and the only pension scheme worth paying in to, as it is index linked, and final salary based. Avoid any other schemes.

Oh my God! :eek:

I have my teacher's pension - do you advise getting rid of it?

property.advert

jem16 wrote: »

Oh my God! :eek:

I have my teacher's pension - do you advise getting rid of it?

No but do check the benefits due to surviving partners and spouses as I am dealing with a widower who was expecting 50% and is only due around 20%. He has been robbed.

Some dates appear to be in 1988 for surviving widowers but much much later for surviving partners.

Lokolo

property.advert wrote: »

No but do check the benefits due to surviving partners and spouses as I am dealing with a widower who was expecting 50% and is only due around 20%. He has been robbed.

Some dates appear to be in 1988 for surviving widowers but much much later for surviving partners.

I think Jem was being sarcastic.

jem16

property.advert wrote: »

No but do check the benefits due to surviving partners and spouses as I am dealing with a widower who was expecting 50% and is only due around 20%. He has been robbed.

Some dates appear to be in 1988 for surviving widowers but much much later for surviving partners.

I knew about the widower's benefits.

It's been like that for a long time. It was 1972 for married male teachers and 1988 for married female teachers. Mariied female teachers could opt to pay extra to "buy back" those years for pre 1988 service but only within 6 months of marriage.

http://www.guardian.co.uk/money/2005/nov/26/gayfinance.schools

It was no doubt mentioned somewhere in the literature.

Lokolo wrote: »

I think Jem was being sarcastic.

Well spotted!

Pixieboy

Regarding refunds in the LGPS, these are no longer available once you have completed 3 months membership.

DiggerUK

jem16 wrote: »

Oh my God! :eek:

I have my teacher's pension - do you advise getting rid of it?

Hell no, it is after all final salary. A very valuable beast as I said in my previous post.
Equivalent of my own pension, (as if you did not know :cool:), take two detentions for your cheek. Then buy some gold.