What to do with my teacher pension....

Tigger1983

Hi all, I left teaching in Feb 09 after three and a half years, throughout which I paid into the TPS. I'm currently 29 and working for local govt.

Having spoken to the tps this morning, my pension is currently worth £1,102 per year with £3,380 in lump sum.

What I'd really like to do is withdraw it (we're about to move house and have a baby on the way with OH about to be made redundant - it would really make all the difference although I know everyone will say it's a bad idea!) - the tps said I couldn't withdraw from them but could transfer to another pension and withdraw that. Does anyone have any recommendations re companies that would do this, and how much I could expect if I did?

Also, what are my other options? I know I can transfer it into my LGPS, is it better to keep it as it is or transfer it?

Thanks all,

Tig.

Proxy

You can't 'withdraw' it. And any company which suggests you can is breaking the law.

And yes, you would be absolutely nuts to do so, even if you could.

More details here:

https://forums.moneysavingexpert.com/discussion/3447527

molerat

Your only (legal and sensible) options are to transfer it or keep it where it is. You need to get a quote from the LGPS as to how many years it will buy and then work out which is best for you.

McKneff

Did you not read up about your pension before you signed up for it.

Its for your retirement, it's not a savings account.

If you could do this, most people would be doing it and have no pension, they'd have spent it when things got a bit tough.

State pension is roughly £107 a week. Could you live on £428 a month if you were retirment age now.

RichandJ

molerat wrote: »

Your only (legal and sensible) options are to transfer it or keep it where it is. You need to get a quote from the LGPS as to how many years it will buy and then work out which is best for you.

And if you've been in the LGPS for more than a year it may not be possible anyway.

Best thing to do is forget (apart from keeping them informed of any changes of address) that it exists. When you then get to 60/65 or whatever their normal retirement age is you will have a nice surprise.

If you find or go for anyone who tells you that you can "withdraw" it (which you can't) you will much more quickly have a nasty surprise when HMRC come after you for tax owed.

atush

I have to agree with everything said. The only possible thing would be to transfer it to your new LG pension, if possible and if it is better than the old teachers one which may not be the case.

You are or were a teacher, and I am sure that robbing tomorrow to pay for today isn't something you would teach others to do?

And I am not being mean, but if money is tight, now isn't the time to be moving house, is it? I mean, you can't choose if now is the right time to be pregnant (too late for that) but you can stay where you are till you are working again after the baby comes.

Tigger1983

Wow...thanks for the advice those who have posted advice. To those who have posted opinions perhaps I should have gone into a bit more detail!

McKneff yes I did read up about it, but at the time I was planning to teach for the rest of my working life. Unfortunately when I was 7 months pregnant I was attacked by a student and ended up losing the baby. After a 6 week hospital stay and 3 months rehabilitating, I tried to go back but just couldn't cope with it. I stuck it out for 6 months through panic attacks and deep depression and was frightened to death every minute of my working day. I was eventually told by my doctor that medication wasn't working and that if I didn't find some other way of lowering my blood pressure I would have a heart attack before the age of 30. I was curious as to whether now that I was no longer teaching I could withdraw it. Had I stayed in teaching, money at this stage would not be a problem and this would all be a moot point but I have to confess that since I intended to keep it until retirement, you are correct and I didn't read up on how to leave it. Also, as I said I currently work for local govt and am paying into the LGPS so even if I didn't have my teacher pension I wouldn't be without anything.

Atush you are not being mean and in normal circumstances I would agree with you. You have jumped to the conclusion that our move is optional though. We are being evicted from our property as the landlord is selling up. As he is going bankrupt we will have to wait for the courts to decide how much of the £1500 deposit we put down we will get back. We are now moving into local authority housing with no carpets, no money to decorate (and with the filth that lived in there before us believe me it needs it), no curtains and no cooker as all these were provided in our current part furnished house.

So as you can see, I am not an idiot, I'm desperate. We were in a pretty reasonable situation and were starting to put some aside when we started trying for a baby. However, 3 weeks after I found out I was pregnant my other half was given notification of redundancy (and he hasn't been there long so no package) and the landlord sprang thithe sale on us.

But thanks anyway - I may feel worse about our situation now than when I posted but at least I am better informed.

xylophone

You could check with LGPS whether a transfer into the scheme is possible but if you left TPS three years ago you might be out of time? I doubt whether you'd get an IFA to sign off your TPS deferred pension to anything other than another DB scheme so you'll just have to regard it as a present for you in the future.

Your experience with the assault and miscarriage was truly dreadful - did you /your union not sue for compensation?

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Redundancy/DG_10026616
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/index.htm

Do check freecycle for the things you need to furnish the flat.
http://uk.freecycle.org/

Tigger1983

Thanks Xylophone - I think it may just be better where it is, I think I only had two years to transfer.

Yes we did go for compensation and for criminal prosecution but the family and the school both had excellent representation and in the end it came down to my fault - I shouldn't have allowed myself to be alone in a room with a student known to be aggressive and unstable (it was actually a bit of a mercy mission - the beastly girl was in with a newly qualified teacher so I took her to my room to calm down as I was free at the time). We could have gone further with it but at that point I didn't have the energy to deal with it.

Thanks for the info on freecycle/freegle, I myself am an avid freegler We've not had much luck with furniture but people have been very generous with things for the garden and I did manage to get a lovely pair of blinds for the kitchen!

atush

Seems your union did not get you a good enough lawyer to me, sorry about your combined cirmcumstances. I certainly hope she faced some jail time.

as for cheap/free items, as well as freecycle, look at local auctions of house clearances. I furnished our first house using lots of things from there. Also check if your local authority amenity center allows you to collect from the dump. Ours is full of quite wonder things incl leather sofas and the like. And check your local charity shops for furniture too. You can leave your name and number with the shop for them to call you if something comes in that is nice.

For cooker, look at interest free credit- many stoes will offer it.
Shop in TESCO of you have one, and use your vouchers for furniture/household goods.

RichandJ

Sorry about the circumstances tigger, but as I & others, perhaps peremptorily, said look at the TPS deferred pension as a bonus for later in life. If you haven't been in the LGPS for more than a year it may still be possible to transfer.

Personally, with the type of 'pupil' you describe, I'd put them up against the wall and have them shot (or do it myself if no one else was willing).

Hope your circumstances improve, however bleak it looks now remember what was at the bottom of Pandora's box.