Deferring State pension after one year.

LXdaddy

Oblivion wrote: »

my wife ... is already in receipt of a teachers pension which is a contracted out scheme and we haven't been able find out the answer to one very important question.

If she were to take her state pension at SPA we would expect the Teacher's Pension to stop paying the GMP element and for the state pension to pay it instead. But what happens if she defers claiming state pension ... will the Teacher's Pension still stop payment of the GMP element at SPA even though there will be no state pension to cover it?

We've written to TP but they are simply ignoring us.

I am sure someone more expert than me will be along soon but... My understanding is that the GMP in a contracted out scheme is to cover the part of the state paension that was previously SERPS or Second pension, NOT the basic state pension.

On that basis when your wife takes (or defers) her state pension it should not have any impact whatsoever on the Teachers' Pension which she is receiving. Her State Pension will not include the SERPS element for the years that she was contracted out.

xylophone

I agree and this is what my wife is thinking of doing ... her SPA is in November this year. However, she is already in receipt of a teachers pension which is a contracted out scheme and we haven't been able find out the answer to one very important question.

If she were to take her state pension at SPA we would expect the Teacher's Pension to stop paying the GMP element and for the state pension to pay it instead. But what happens if she defers claiming state pension ... will the Teacher's Pension still stop payment of the GMP element at SPA even though there will be no state pension to cover it?

We've written to TP but they are simply ignoring us.

https://forums.moneysavingexpert.com/discussion/4949119

See post 6 onwards and especially post 30.

Also https://www.atl.org.uk/Images/PF10%20-%202011.pdf

"In the event that you do not receive
your state pension, even though
you are over the state pension age,
Teachers’ Pensions will continue
to pay increases on your entire
TPS pension."