Leaving the Police and recall aiming contributions

DC1980_2

Title should be*reclaiming contributions* iPad autocorrect!

I have 13 years police service but am looking to leave for a new career very shortly.

My original retirement age was 50 which obviously changed with the recent pension review.

I have been told that if I leave the police I will forfeit any claim on my contributions until I am 69 and I understand that in terms of drawing the pension that is likely the case.

This is clearly not appealing and however good the pension scheme may be it is only good if you can get your hands on the pension. I would have a lot of money tied up in a pension scheme I might never see or only get limited return on.

I want to get my hands on the contributions at least to move them to another investment however I am finding it difficult to establish if this is possible and what penalties I would pay. Can anybody help with any information on this?

dunstonh

I suggest you get more accurate information. What you say doesnt sound right

I want to get my hands on the contributions at least to move them to another investment

Unlikely you would get an IFA willing to sign off on that.

Wilkins

69? Are you sure? If the case, you might feel very differently when you are 68 and could have been about to draw that pension.

jem16

DC1980 wrote: »

I have been told that if I leave the police I will forfeit any claim on my contributions until I am 69 and I understand that in terms of drawing the pension that is likely the case.

Is your state pension age going to be 69?

You would become a deferred member. Deferred members are able to access their unreduced pension at on the scheme’s deferred pension age (ie the individual’s State Pension Age). Access to pension before that will involve actuarial reduction based on the scheme’s deferred pension age.

So you will be able to get it earlier but on reduced terms.

I want to get my hands on the contributions at least to move them to another investment however I am finding it difficult to establish if this is possible and what penalties I would pay. Can anybody help with any information on this?

You would need to request a transfer value and then find an IFA willing to sign off the transfer. The IFA would have to establish whether this would be in your best interests or not.

Traditionally transferring a defined benefit pension to a defined contribution pension would be very, very wrong and likely to leave you much worse off.

JuicyJesus

jem16 wrote: »

Traditionally transferring a defined benefit pension to a defined contribution pension would be very, very wrong and likely to leave you much better off.

Really hope you mean WORSE off...

hyubh

DC1980 wrote: »

Title should be*reclaiming contributions* iPad autocorrect!

You cannot 'reclaim' your contributions in any case - rather, if you leave before retirement, you will have a deferred pension in the scheme.

My original retirement age was 50 which obviously changed with the recent pension review.

It has not 'obviously' changed: what will be going up is the normal pension age for post-April 2015 membership.

I have been told that if I leave the police I will forfeit any claim on my contributions until I am 69 and I understand that in terms of drawing the pension that is likely the case.

You have been told wrong. The current normal deferred pension age is 60 in the 1987 scheme (which you must be in, having quoted 50 as your normal pension age as an active member); current proposals are that benefits pertaining to service from April 2015 will have a deferred pension age of your state pension age. As such, if you have pre- and post-April 2015 service and leave before retirement, drawing the pension at 60 will only cause the second part to be actuarially reduced. See here:

https://www.gov.uk/police-pension-reform

Also, keep in mind the normal pension age for active and deferred members is already different - comparing your normal pension age as an active member now and your normal deferred pension age in the new scheme isn't comparing like with like.

This is clearly not appealing and however good the pension scheme may be it is only good if you can get your hands on the pension. I would have a lot of money tied up in a pension scheme I might never see or only get limited return on.

Such talk implies you think police pensions operate on a 'defined contribution' rather than 'defined benefit' basis, which is not the case.

I want to get my hands on the contributions at least to move them to another investment

That would be very foolish, unless you are not expecting to live much longer (and even then, the life cover and survivor pension should be taken into account).

jem16

JuicyJesus wrote: »

Really hope you mean WORSE off...

Oops! Of course I do - posting in too much of a hurry obviously!

Will edit my post.

atush

I suggest you go back to the drawing board and actually learn about our current pension, and the changes.

Whoever gave you your information was either deluded, or acting in a prejudiced manor trying to turn you against your pension for personal gain. The only person who would do this on purpose thinks there is money in it for them. Union? Unregulated transfer?