Leaving a final sal pension <2yrs

Jazzyjeff_2

I'm hoping to leave work soon and my qualifying service will probably be around 1 1/2 years. My scheme says I can transfer the benefits into a new pension within 3 months, does this mean the FULL benefits - i.e. an offer which will include a calculation of their contribution as well as what I have paid towards it?

Obviously this makes a big difference as working out my pension based on 1/60 I would have got £550 odd a year after reaching 60 (ignoring the min. qual. service)- so an offer of around £5-6k maybe? If only my contribution then that will be pants as only a few hundred!

Any help appreciated.

Andy_L

If you transfer it the employers contributions go with it. The refund (if allowed) will be your contributions only, IIRC less tax as well

Debt_Free_Chick

Jazzyjeff wrote: »

I'm hoping to leave work soon and my qualifying service will probably be around 1 1/2 years. My scheme says I can transfer the benefits into a new pension within 3 months, does this mean the FULL benefits - i.e. an offer which will include a calculation of their contribution as well as what I have paid towards it?

Obviously this makes a big difference as working out my pension based on 1/60 I would have got £550 odd a year after reaching 60 (ignoring the min. qual. service)- so an offer of around £5-6k maybe? If only my contribution then that will be pants as only a few hundred!

Any help appreciated.

You will be offered the cash equivalent of the deferred pension (the one you would have got, if you could have left it in the scheme until retirement age).

The calculation is not based on what has been paid. Instead, it's the amount that the scheme would put aside, to ensure it had enough money to pay the deferred pension at age 60.

It could be more or less than the total of your contributions plus those paid by your employer. It could be less than your contributions (but they might pay your own contributions as a minimum). The important thing is that you are getting what the scheme would have paid out anyway.

Ask for both figures (your refund and the cash equivalent) and then make a decision.

Jazzyjeff_2

I doubt my contributions would be more as I paid nothing the first 9 months as it was non-contributory then!!

Thanks for the help!!:T