Need help with Teachers' Pension

Weybridge78

Hi,

I have been teaching since August 2016 and the pension that my employer and I pay into is the Teachers' Pension. I would like to opt out of the pension. I am strongly considering leaving my job as a teacher in the next few months and do not intend to return to teaching.

I have been told by the school that I was enrolled into TP on 30 August 2016, which is when began teaching. However, my dashboard on TP online says it has been less than 2 years of qualifying service.

This is causing some confusion as if it is less than 2 years of qualifying service, I can withdraw the amount I have contributed to the pension. However, if going by the start of the teaching, it has obviously been ever so slightly over 2 years.

What would you advise I go by? I am thinking the information on the TP online is more accurate. Also, am I right in thinking to opt out and then request a refund of my contributions?

liviboy

TPS online is most likely showing you service up to the latest benefit statement (likely March 2018 [published August 2018]).

Your pensionable service is most likely now at 2 years as you began in August 2016.

Note I’m in Scotland and so there may be subtle differences even though the pension schemes are pretty much identical (except mine is administered by the SPPA).

Drp8713

I would advise you do not opt out. Do you teach maths? If so, take a look at the numbers, the deferred pension is worth massively more than the refund, which loses you all of the employer funded part of the pension and all of the tax relief.

I would assume the dashboard doesnt update in real time, and since you only met your 2 year date a few days ago, it is not yet up to date.

legorules

Most employers now are submitting details each month, but not all. What is the latest period showing on your statement? If it is not showing August 18 yet that may be why it's showing less than 2years.
The best advice is to remain in, there are few pensions better than teachers. If you do stop teaching, you can possibly transfer anything in there to a new pension provider, though it is highly likely it would be better left as a deferred.

If there are two years as expected now, then you will not be able to get a refund if you did opt out.

Savvy_Sue

I don't know if this happens with the TP, but my employer notifies NEST as soon as someone joins, but defers contributions for three months. If it's the same with TP, would that explain it?

zagubov

Absolutely do NOT opt out of the pension.

I made exactly the same mistake as the one you're considering about 30 years ago with my brief NHS pension.

There is simply no way you can compensate for the missing pension later on, without paying ridiculous amounts of money.

As I found out to my own cost.
I've been an idiot, so you don't have to be as well.

GDB2222

zagubov wrote: »

Absolutely do NOT opt out of the pension.

I made exactly the same mistake as the one you're considering about 30 years ago with my brief NHS pension.

There is simply no way you can compensate for the missing pension later on, without paying ridiculous amounts of money.

As I found out to my own cost.
I've been an idiot, so you don't have to be as well.

Like Zagubov says.

kidmugsy

You must urgently opt out of the pension. The taxpayer needs burdens lifted off him.