Alpha vs Partnership pension on fixed-term contract

elliot5200

Hi everyone,


I’ve recently started a civil service job on a 9 month contract and have a choice between alpha and partnership (with Standard Life).


Do you know which option is better assuming I’m staying in civil service for less than 2 years?


I’m 28, on 26K and unmarried


I’d be happy to make higher-than-standard contributions if it’ll help the pension pot build up


Cheers in advance! :beer:

p00hsticks

elliot5200 wrote: »

I’ve recently started a civil service job on a 9 month contract and have a choice between alpha and partnership (with Standard Life).

Do you know which option is better assuming I’m staying in civil service for less than 2 years?

If you aren't going to reach 2 years service, you won't get an pension under Alpha - when you leave you'll have the choice of getting your contributions refunded (not a good option as you'll lose the employer contribution and have tax and NI deducted) or transferring an amount over to another personal pension.

So Partnership is likely to be the better option....

Kynthia

p00hsticks wrote: »

If you aren't going to reach 2 years service, you won't get an pension under Alpha - when you leave you'll have the choice of getting your contributions refunded (not a good option as you'll lose the employer contribution and have tax and NI deducted) or transferring an amount over to another personal pension.

So Partnership is likely to be the better option....

This. You need two years service to qualify for a pension in the civil service pension scheme. I believe you get the option to transfer both your employee and employer contributions to another scheme within 12 months of leaving. However it seems safer to go straight into Partnership than rely on a transfer but I don't know much about Partnership to be sure.

marlot

If you make a pension transfer in, you don't get booted out if you leave within two years.

Or at least, that was the case when I started in the civil service three years ago (and was one of the reasons I did a transfer in when my agency went into a reorg).

Kynthia

marlot wrote: »

If you make a pension transfer in, you don't get booted out if you leave within two years.

Or at least, that was the case when I started in the civil service three years ago (and was one of the reasons I did a transfer in when my agency went into a reorg).

That's correct. A transfer - in will override the need to stay for the minimum term. It could make Alpha a more viable choice.

elliot5200

Thanks very much guys!