Left Employment - pension contributions

Drebin911

Good Afternoon Money Savers!

I have recently left my job (Civil Service, DWP) after a good few years service, I am now 27 years old.

I have been contributing to "NUVOS CIVIL SERVICE" pension for 3 years at approx £67.00 per month (sometimes more due to O/T).

I am no longer a civil servant, and was under the impression I could regain my pension contributions, minus Tax + the cost of putting me back onto the state pension (?).

I phoned up My Civil Service Pensions to enquire, but was told after 2 years it is not possible to have a refund of contributions.

I am aware (mainly in part due to this great forum) that the pension contributions from the Employer add up greatly, and are very valuable, however I am not able to touch this money for close to 40 odd years, (if the age does not increase in that time).

I think I already know the answer, but is there anything I can do about this?

To potentially get my contributions back, as they will come in far more useful over the next couple of years, off my own back than not seeing that money for half a century!

I will be starting a new job, but on a reduced income - so will be opting out of the pension on my new job

In short: Is there a way for me to get my contributions back?

Many Thanks

Joe C

x

Your_Hero

Joe_Cocaine wrote: »

In short: Is there a way for me to get my contributions back?

No. What they told you was right. For occupational schemes, it's between 3 months and 2 years you can get the refund. You will thank them in your later years for keeping it where it is.

Drebin911

Okay cool, thanks for the heads up YOUR HERO.

Best wishes

x

atush

Oh to be young and foolish again!!!!!

No, you cannot get your contributions back. Do you realise that you have a % of your final salary (indexed and growing for each of those 40 years) coming to you with this pension? I dont know if it is 3/60ths or 3/80ths but your scheme book will tell you.

Do you know what that would cost to buy as income??? I am sure you dont.

and even if you could get the money back, lets look at an illustration.

Say you had contributions of 1K in a pension, and 500 came from your employer (yours wil have been much higher). that is 500 of the 1000 gone. Take back 100 for tax, plus another 60 in NI and you are left with only 340 of the original 1000. Sound like a good idea to pi** away 340 instead of having 1K in pension?

Keep that pension where it is, unless you have access to another DB pension in the future. Otherwise be happy you are way ahead of most others your age.

xylophone

so will be opting out of the pension on my new job

Not a very sensible choice - you will be foregoing your employer's contribution and tax relief?

Will your new pension be defined contribution?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf

And re the single tier state pension (from 6 4 16) - the legislation has been passed https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

hyubh

atush wrote: »

Do you realise that you have a % of your final salary (indexed and growing for each of those 40 years) coming to you with this pension? I dont know if it is 3/60ths or 3/80ths but your scheme book will tell you.

He said Nuvos, so CARE with a 2.3% accrual rate and straight CPI revaluation rate. For short periods of membership like the OP's, it's actually better than the preceding FS scheme...

atush

so what is that? 2.3% for every year? So that times 3?

Quote:
so will be opting out of the pension on my new job

Can we say very bad idea and very shortsigthed to throw away Free Money???

Yikes.

Thrugelmir

atush wrote: »

so what is that? 2.3% for every year? So that times 3?

Employers contribution is 26% of gross salary.

PeacefulWaters

Joe_Cocaine wrote: »

I think I already know the answer, but is there anything I can do about this?

No. And if it was possible it would be financial madness to pursue it.

To potentially get my contributions back, as they will come in far more useful over the next couple of years, off my own back than not seeing that money for half a century!

It is a pathetic short term trade off that will do you much more harm in the long run than it does you good in the short term.

I will be starting a new job, but on a reduced income - so will be opting out of the pension on my new job

Oh come on. You're just chucking free money away now for the sake of a very small commitment on your part.

How much does your employer pay into the scheme if you contribute?

Drebin911

Thanks all for the replies, yes - a little short-sighted I would agree.

Particually, once you read it like that.

Peacefulwaters: I will need to check, as I have not actually started just yet, nor recieved any paperwork regarding.

It is a Local Government Pension Scheme:

Pension = Membership x Accrual Rate x Pensionable Pay

PeacefulWaters

It is a Local Government Pension Scheme

In which case you sign up, pay up and reap the benefits when you're older.

If cash is tight, economise elsewhere. That pension has huge long term value.