MyCSP Alpha Pension

GrantJ

Hi!

Advice needed please 😁. I have been working in the Civil Service for around 15/16 months. I have an Alpha Pension which I have just Opted Out from but have paid in since June 2017.
I have requested a refund as I am skint and I will re join when I have a promotion next year. I really need the cash I’ve paid in.
I have 2 kids and Christmas is coming and my monthly outgoing are getting on top of me.

They have said that I cannot get a refund as I transferred in a pension from a previous job. I really need the money. Even if I just get back what I’ve paid in since I’ve been with the Covil Service, that would do!

I feel so emotional and distressed, like I’m losing at life.

Silvertabby

I'm sorry, but the transfer in means that you will be unable to take a refund of your contributions. Instead, your pension accrued to the date you opt out will be preserved in the scheme, ready to be re-activated once you opt back in.

Perhaps you would like to post details of your finances on the debt boards? - the good people on there are only to happy to offer help and guidance.

GunJack

I know it's tough, but not being in the pension scheme will knacker you long-term, especially one as good as the CS. If you really need more income, you and/or partner could get a pt job as well. I certainly did my fair share of pizza deliveries when I was younger coz we were pretty skint (not much better now, mind )

Dazed_and_confused

I feel so emotional and distressed, like I’m losing at life.

In a few years when you start to receive the pension you tried to back out of you will feel on top of the world realising how fortunate you have been.

Appreciate it won't seem like that now but trust me it will when you're approaching retirement!

hugheskevi

I have an Alpha Pension which I have just Opted Out from

Hopefully you didn't just opt-out, but rather switched to Partnership? You do not have to contribute anything to Partnership, so there is no reason not to be in Partnership rather than fully opted-out of all pensions.

I have requested a refund as I am skint and I will re join when I have a promotion next year. I really need the cash I’ve paid in.

By opting out you are effectively taking out an extremely expensive loan. You are getting a bit more money now (gaining your contribution, less tax relief but that is only about a 4.36% salary increase) in return for far less in the future (loss of your contribution, your employer's contribution and tax relief).

TheShape

GrantJ wrote: »

I have 2 kids and Christmas is coming and my monthly outgoing are getting on top of me.

Opting out of the pension is not a good way of getting on-top of your finances as the cost to you in terms of lost pension provision will be significant. Post on the debt-free boards and find a way to manage your finances that allows you to opt back in to the pension ASAP.

As for Christmas, now is the time to talk to the children, family and friends to explain that your financial situation allows only for modest expenditure. Do not allow an expectation of increased spending at Christmas to cause you financial hardship either in the short-term or the long-term (by not being able to fund pension contributions).

Dazed_and_confused

Good points made by hugheskevi.

If you are paying a pension contribution of say £100 each month you will only see your take home pay increase by £80.

Not paying into the pension means more of your salary will be taxable thus increasing the tax you pay each month :eek:

marlot

GrantJ wrote: »

I have been working in the Civil Service for around 15/16 months. I have an Alpha Pension which I have just Opted Out from...

I hope you moved over to partnership. That way you'll still be accumulating pension (and you don't have to pay in, unless you want to!).


Sorry to hear that things are difficult. There are boards on here who will help with finances.

xylophone

Not a wise move - you do realise that your pension protects your dependants in the event of your death?

I was acquainted with a family whose breadwinner died in an accident - this left a widow and two very young children without support.

Mercifully he was a member of LGPS.... (another defined benefit pension scheme).

Kynthia

I'm sorry you are struggling. Please try the debt free board as they have really good advice about reducing your outgoings, finding good deals with utilities, getting cash from switching current accounts, using cashback sites, etc.

As others have said opting out isn't a good idea and at least opt back into Partnership as you don't have to pay anything in but your employer will.

Everyone has times in their life when money is tight and it doesn't mean you are failing. Ask for help from friends/family/debt charities, see if you're entitled to any benefits. Have a frugal Christmas with more crafts, baking, movie-nights in, walks to see the reindeer (country parks often bring them in for Christmas), etc. Children often don't remember most of what gifts they got a couple of months later but they remember decorating the Christmas cake with marzipan snowmen for years.

Silvertabby

xylophone wrote: »

Not a wise move - you do realise that your pension protects your dependants in the event of your death?

I was acquainted with a family whose breadwinner died in an accident - this left a widow and two very young children without support.

Mercifully he was a member of LGPS.... (another defined benefit pension scheme).

I remember the awfully sad case of a LGPS member who opted out and took a refund in order to pay for his wedding. He never did opt back in again - then he was killed in a car accident, also leaving a widow and two young children.

His HR manager assumed that he was in the pension fund and reassured the widow that she would receive a tax free lump sum of 3 x times his salary plus pensions for herself and the children. Of course, they received nothing.