Small amount in pension but can I capitalise on it

jem16

Catbells wrote: »

Just to clarify - should I leave the £500 in the teachers pension scheme?

9 times out of 10 this is the best course of action but without a transfer analysis being done we can't be sure.

If I don't have any further contributions going into it as a teacher (unlikely) then can I assume it will stay there until I retire at which point I will get it in a lump sum or paid a miniscule amount of pension each year from it.

As it's from the 1/80ths scheme you will get a pension AND a lump sum.

Jem - I was a member of the scheme for 2 years or so (its actually 30 years ago) and then had children.

If you have paid in for 2 years then the £500 is your actual pension amount. Based on that it probably has a lump sum of £1500 as well.

I opted out of the pension scheme when I went back part time 20 years ago and instead looked to my house for my pension.

That was probably not a wise decision. How may years part time did you do?

jem16

Catbells wrote: »

Just re read this. My pension statement showed the amount of £500 so this must be the amount of pension I will receive. I will double check this.

When was your last statement?

Catbells

jem16 wrote: »

When was your last statement?

I rang them around 2 years ago and was told this amount. I'm not sure but I need to find out whether this is the total amount in the fund or the annual amount payable.

jem16

Catbells wrote: »

I rang them around 2 years ago and was told this amount. I'm not sure but I need to find out whether this is the total amount in the fund or the annual amount payable.

The Teacher's pension scheme doesn't have a fund.

Catbells

jem16 wrote: »

9



That was probably not a wise decision. How may years part time did you do?

Sadly, I realise this all too well. 15 years part time.

Catbells

jem16 wrote: »

The Teacher's pension scheme doesn't have a fund.

In that case I'm not sure. It may have been the actual local authority I worked for (quite likely) who gave me the information.

jem16

Catbells wrote: »

Sadly, I realise this all too well. 15 years part time.

Oh dear - that 15 years part time plus your 2 years full time could well have seen you receiving a pension of approximately £3k and a lump sum of £9k, perhaps more depending on what your actual final salary was. That's assuming you worked half a week.

jem16

Catbells wrote: »

In that case I'm not sure. It may have been the actual local authority I worked for (quite likely) who gave me the information.

I doubt it - they wouldn't know.

I suspect that you contacted the pension scheme and they told you the annual pension as that is what is given.

A fund is only available in money purchase schemes, not final salary schemes.

I would suggest you get in contact again and request an up to date statement. Is it the English or Scottish scheme?

Catbells

jem16 wrote: »

I doubt it - they wouldn't know.

I suspect that you contacted the pension scheme and they told you the annual pension as that is what is given.

A fund is only available in money purchase schemes, not final salary schemes.

I would suggest you get in contact again and request an up to date statement. Is it the English or Scottish scheme?

From memory my name was on their system and it appeared they knew my contributions. Is this possible with a local authority payroll? Its the English scheme.

jem16

Catbells wrote: »

From memory my name was on their system and it appeared they knew my contributions. Is this possible with a local authority payroll? Its the English scheme.

The local authority may well know how many years you contributed but I doubt if they would have the exact details of your entitlement as this would have been worked out on your final salary and then increased in line with inflation for those 30 years.

You should really contact the pension scheme itself and clarify.

http://www.teacherspensions.co.uk/contact/contactus.htm