Help with teacher's pension???

Sunshine888

I am 60 years old and working for a local authority, it is likely that our posts will go shortly. I am very recently divorced and have a very large mortgage, however my ex husband agreed that I may keep my pension. I started teaching in the 70s and paid into the teacher's pension scheme until 2005 and then joined a local government pension, my teacher's pension was NOT taken across. I have tried to get information regarding my teacher's pension, I want to know do I have to take it now? I was told by TPS that it would be a tax nightmare if I left it where it was for another 2 years and I should apply for it now??? A colleague told me if I left it my lump sum would be considered an investment and I will be heavily taxed??? Is this true? Also TPS said that if I left it in place and retired in 2 years time my pension would be back dated, is this correct??? I really do not know what to do for the best because I do not seem to get all the facts in black and white. So what do I do?????

xylophone

You have a deferred pension with the TPS. You should have a scheme booklet which relates to your pension and what happens in deferment and when you bring your pension into payment.
https://addvantage.hartlinkonline.co.uk/tp/advlgi.chi/login.html
Should you try here to get access to further information specific to your situation?

xylophone

You can obtain a state pension forecast http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@over50/documents/digitalasset/dg_180422.pdf

And you should check with LGPS as to when you can draw your LGPS pension.http://www.lgps.org.uk/lge/core/page.do?pageId=1

Remember to contact HMRC when you draw your pension(s) in order to ensure that you are correctly taxed.

You may need to contact HMRC again when you draw your state pension.
http://www.hmrc.gov.uk/incometax/basics.htm

sleepless_saver

Maybe I'm missing something, but what's the problem about taking your teacher's pension now? You can still carry on in your local authority job and draw the teachers pension. Or are you trying to avoid getting into a higher tax bracket?

hyubh

Sunshine888 wrote: »

I am 60 years old and working for a local authority, it is likely that our posts will go shortly. I am very recently divorced and have a very large mortgage, however my ex husband agreed that I may keep my pension. I started teaching in the 70s and paid into the teacher's pension scheme until 2005 and then joined a local government pension, my teacher's pension was NOT taken across. I have tried to get information regarding my teacher's pension, I want to know do I have to take it now?

The normal retirement age for your TPS pension will be 60, for the LGPS one 65. The normal retirement age is when you can draw the pension without it being reduced for taking it 'early', though if you were to be made redundant by your current employer, then you can expect your LGPS pension to start immediately with your now ex-employer picking up the tab.

I would have thought the question is less 'why might I draw the TPS pension?' than 'why on earth would I not?' The fact you would be 'retiring' for TPS purposes doesn't imply you have to retire full stop.

So what do I do?????

Use less superfluous punctuation?

Zero_Sum

hyubh wrote: »

The normal retirement age for your TPS pension will be 60, for the LGPS one 65. The normal retirement age is when you can draw the pension without it being reduced for taking it 'early', though if you were to be made redundant by your current employer, then you can expect your LGPS pension to start immediately with your now ex-employer picking up the tab.

I would have thought the question is less 'why might I draw the TPS pension?' than 'why on earth would I not?' The fact you would be 'retiring' for TPS purposes doesn't imply you have to retire full stop.

Use less superfluous punctuation?

If theyre 60 now, they'll still qualify for the LGPS 60 y/o normal retirement age, as when the regs were changed a few years back those born before 1956 (or something like that) were exempt. So won't cost the employer anything, should they decide to retire now.

hyubh

Zero_Sum wrote: »

If theyre 60 now, they'll still qualify for the LGPS 60 y/o normal retirement age, as when the regs were changed a few years back those born before 1956 (or something like that) were exempt. So won't cost the employer anything, should they decide to retire now.

No, that's not true. You seem to be referring to the 85 year rule, and while that could be applicable for a 2005 joiner (it wouldn't for someone who joined in the past few years), the OP has too little LGPS membership to benefit.

Zero_Sum

hyubh wrote: »

No, that's not true. You seem to be referring to the 85 year rule, and while that could be applicable for a 2005 joiner (it wouldn't for someone who joined in the past few years), the OP has too little LGPS membership to benefit.

nope, the regs were changed in 2008. You can retire when you're 60 & you don't need employers permission, and won't cost them anything. Even if you're under 60 & qualify for the 85 year rule, it'll still cost the employer.

hyubh

Zero_Sum wrote: »

nope, the regs were changed in 2008. You can retire when you're 60 & you don't need employers permission, and won't cost them anything. Even if you're under 60 & qualify for the 85 year rule, it'll still cost the employer.

You originally claimed that 60 is the 'normal retirement age', which is false - 60 is the age at which you can draw an LGPS pension *with a reduction*. 65 remains the 'normal retirement age' (or 'normal pension age' - NPA), and always has been. What the 85 year rule does is to remove the actuarial reduction, if you qualify (and there's a sliding scale - a person might meet the 85 year rule at age 60, 61, 62, 63 or 64).

In the OP's case, resigning at age 60 and electing to draw her LGPS pension will lead to the pension being actuarially reduced (she will also obviously have less membership than if she stuck it out to age 65). If she were to be made redundant 'for reasons of the efficiency of the service' or the like however, the employer will be charged by the pension fund so that her pension will not be actuarially reduced.

xylophone

http://www.lgps.org.uk/lge/core/page.do?pageId=100791

pleasedelete

You should get an annual statement from both. You know it was the wrong thing not to move it (unless you earn less now than 2005) if it is any consolation I didn't move mine in 2000 and bitterly regret it.

Sadly if near pension age you may not be made redundant as it probably costs more than a younger person (unless you want to stay in work then it's a benefit ). Did you have continuous service from school to LA as this affects redundancy