Is it worth me joining?

wmonkey

I'm 23 and starting a new job.

I have a 10 month contract and don't plan on staying much after that if at all possible.

I have the option of joining a local government (final salary) pension scheme, which from what people have said is very good.

However, given that I don't plan on being there that long is it worth me joining?

I have to pay in 6% of my salary (about £1300) - I don't need the money, I max out my ISA allowance at the start of each tax year and have other savings.

But what happens to the money I pay in over that time? I'm presuming I can't keep paying in to this pension plan when I leave (to the commercial sector or self employment).

I'm also presuming I'm not going to benefit much from it at all over such a short period of time?

Is it worth it or not?

Thanks :beer:

CAE

It's worth joining the Local Government Pension Scheme, as it is a final salary scheme with the benefit of employers contributions. You will also pay less tax and slightly lower NI contributions. When you leave you will be entitled to a preserved benefit, but you will not be able to make further contributions. Your contract may be extended, and you will not get an opportunity to backdate your membership. The benefits may also be transferred to another pension scheme.

You will be put into the scheme automatically, and it is important to note that if you wish to opt out this must be done within three months of joining. After three months you will not be able to get a refund of pension contributions.

The LGPS also has life cover in the event of your death, with a Death Grant currentle equal to twice your actual pensionable pay.

You should ask your employer or administering authority for a scheme guide or check out www.lgps.org.uk for more information. The scheme is changng from 1st April 2008, and details as available on the website

david78

wmonkey wrote: »

However, given that I don't plan on being there that long is it worth me joining?

Everyone says this!

You should join.

LittleVoice

I think it depends on how close you are to retirement.

When I was 59, I took up a part-time (around 12 hours per month) and remained for 3 months. I could now collect a pension of around £5 a year! The bother of providing certified copies of birth and marriage certificates is hardly worth it and I could probably earn as much from interest on my contributions.

The first I knew of the scheme was when my first payslip arrived. When I complained, in the second month of my appointment, that I had not been given the choice and had had no prior knowledge of the scheme, I was told it was too late as I was now entered as a member! It seems I was misinformed on that.

EdInvestor

Almost always sensible to join Government pensions because they have the best terms, are guaranteed adn there's a bigger likelihood that even if you leave you will return later and/or join another member of the Transfer club ( eg NHS, Civil service, teachers, universities scheme) and be able to transfer in and reactivate the pension.

wmonkey

david78 wrote: »

Everyone says this!

If i'm not out by the start of next summer someone had better shoot me!

Thanks all, I've opted to join.