Leaving company pension and S2P

Telchar

Good afternoon

First post, long time reader first time poster but I've been really struggling with this and can't find an answer online so hoping the wise here can answer.

I have recently resigned from my job, a division of a large multinational to go work for a long standing family firm in the same industry (better money, more akin to my job, and said multinational is selling our division to the Chinese)

for the last 23 months I've been a member of the final salary pension scheme (which is about to be scrapped with the take over anyway) I've received my letter from the pensions provider regarding my options either a refund or a contribution at A.N.other pension scheme. I was looking down the refund route - some spare cash in case the job move turns out to be unwise :eek: but once settled get it back invested for retirement. The letter states:

Any refund would be less 20% tax (no problem there) and

"subject to a deduction equal to the cost of buying you back into the state S2P"

now I can understand that to an extent but how much does it cost to do that? I've seen tons of links with the same statement but no answer as to the implications :mad: would like to have an idea of how much this refund might be so I know what I have to play with...

anyway hopefully someone can give me an idea or most likely point out Im been a plonker

xylophone

"subject to a deduction equal to the cost of buying you back into the state S2P"

Ask the pension provider?

And in your position I'd forget the refund and transfer into new employer's scheme (since it would appear that you do not have the option of leaving it as a deferred FS pension with the old employer) or if this is not possible into a personal pension.

dunstonh

usually a refund of premiums is the worst option to take. You lose the employer benefit and have to pay tax and NI on the refund. A transfer is nearly always the better option.