Removing Contributions to pay debt

atush

brokenglish wrote: »

Thanks for all your responses I feel like I have a better grasp of this situation and pensions in general now. A lot to look up, I had no idea what CARES or SSP were!

However, I still feel unclear as to what to do next. I am fully aware that I will lose the employers contribution and the tax relief. And this money that I stand to lose is greater than the current high interest debt that I have. This might make it seem like a simple decision long term, but I don't think its the only factor worth considering. Furthermore, though it might be a brilliant pension I am leaving and there really isn't that much in it. It would be a career average, but I have not worked for two years so I don't qualify. There are other DB schemes I can move it to, but it is not clear that is what I will be entitled to in my future role.

The teachers pensions website also says this:

"If you’ve not qualified for benefits because you have less than two years pensionable service you can have a repayment of your contributions. If you were already in receipt of benefits from the Scheme you cannot have a repayment, but will receive additional benefits."

Sorry for going on, but I also think it is worth considering that I am under a lot of stress and pressure to deal with the high interest payment now. My career, education and relationship choices are affected. I believe much more drastically now than they would be in 45 years time.

Even if you dont stay for 2 full years you will still be able to transfer the pension to your new work pension or a Personal pension. AS you will get less than 160 of every 570 on your plan That is like flushing over 400 quid of each 570 down the toilet???

Far better to take your debt in hand by lowering outgoings. And taking on extra work somewhere.

Southend1

hyubh wrote: »

Is the new employer likely to be public or private sector? (If it matters, for this question a university would almost always count as the former.)

When USS changes next year it will no longer be a member of the public sector transfer club

hyubh

Southend1 wrote: »

When USS changes next year it will no longer be a member of the public sector transfer club

Interesting, is that confirmed? If the USS pulls out, then presumably imitator schemes like SAUL will do likewise... at which point I can imagine further grumblings about the LGPS remaining in (which it does on unfavourable terms).

Southend1

hyubh wrote: »

Interesting, is that confirmed? If the USS pulls out, then presumably imitator schemes like SAUL will do likewise... at which point I can imagine further grumblings about the LGPS remaining in (which it does on unfavourable terms).

That's what the consultation docs said. I believe it can't remain in because it will no longer be a DB scheme whereas LGPS is.

hyubh

Southend1 wrote: »

That's what the consultation docs said. I believe it can't remain in because it will no longer be a DB scheme whereas LGPS is.

Hmm, it's becoming a hybrid scheme overall isn't it, though most benefits will remain DB? OK, not quite the same, but not a million miles away from DB + money purchase AVC.