Teachers Pension - Less than 2 years qualifying service.

Shylock

I was a college lecturer from January 2015 until October 2016 and was a member of the Teachers Pension during that time.  The minimum qualifying period for Benefits with the Teachers Pension is two years so I'm trying to find out what's happened, and what to do, with the contributions made during that period.  All I can find on the scheme Web-site is:-
 "Less than two years pensionable service - If you have not qualified for benefits because you currently have less than two years pensionable service you can have a repayment of your contributions".
Although I'm still an "Active Member" of the Teachers Pension scheme it's unlikely that I'll return to the Teaching profession so I'd really like to either have this money back (is it Taxable, bearing in mind I'm still employed and paying Income Tax?) or have it transferred into one of my other schemes or pots.  I have a Nest Workplace scheme with my current employer and also have a deferred Defined Benefits scheme with a previous Local Government employer.
What are my options?

xylophone

According to the guidance to employers here
 https://www.teacherspensions.co.uk/-/media/documents/employer/guides/independent-school-checklist/tp1922-factsheet_valuation---employer_v9.ashx?rev=fe91100ac60d45a48a12d7fe0298a168&hash=56A513F8B11D8668A87451421E69145A

If they haven’t qualified for pension benefits, i.e. they have

less than two years’ service in the Scheme, they can transfer

to another pension scheme (DB or DC), or take a repayment

of contributions

Silvertabby

A transfer is a far, far better option than a refund.  In the case of a refund, you only get back your own contributions (your employer contributions being forfeit) less tax and NI rebate.

You can't transfer into your deferred LGPS pension, but a transfer into your NEST pension could be a possibility. 

Shylock

Silvertabby said:

A transfer is a far, far better option than a refund.  In the case of a refund, you only get back your own contributions (your employer contributions being forfeit) less tax and NI rebate.

You can't transfer into your deferred LGPS pension, but a transfer into your NEST pension could be a possibility. 

Thanks for the info.
I've just found this on the NEST Web-site "We can’t accept disqualifying pension credit or transfers from a defined benefit scheme", but I wonder if, because I haven't qualified for any Benefit yet under the Teachers Pension, that won't apply?  The information xylophone provided above would also seem to suggest that.
From what you're saying I presume that, if I can find a way to Transfer from the Teachers Pension to one of my other schemes, I will benefit from not just my contributions but also those made by my employer?

Silvertabby

Shylock said:

Silvertabby said:

A transfer is a far, far better option than a refund.  In the case of a refund, you only get back your own contributions (your employer contributions being forfeit) less tax and NI rebate.

You can't transfer into your deferred LGPS pension, but a transfer into your NEST pension could be a possibility. 

Thanks for the info.
I've just found this on the NEST Web-site "We can’t accept disqualifying pension credit or transfers from a defined benefit scheme", but I wonder if, because I haven't qualified for any Benefit yet under the Teachers Pension, that won't apply?  The information xylophone provided above would also seem to suggest that.
From what you're saying I presume that, if I can find a way to Transfer from the Teachers Pension to one of my other schemes, I will benefit from not just my contributions but also those made by my employer?

Although TPS is a defined benefit scheme, the fact that you don't have actual pension rights means that your NEST pension should accept the transfer without a quibble.  But if you find yourself dealing with a young, inexperienced, administrator, you may have to refer them to xylophone's link (or a more experienced administrator).

A transfer isn't based on actual contributions, but on the pension you could have accrued were it not for the minimum vesting period.  By all means get quotes for both a refund and a transfer - and be prepared to be shocked at the difference.  

Shylock

OK, I've now received my "Guaranteed Statement of Entitlement" from the Teachers Pension Scheme detailing my guaranteed transfer value.  You were right!  I was shocked at the difference to just receiving a refund!
However, the Transfer Discharge Form contains the following wording:-
"I understand that after I transfer my benefits from the TPS, if I gain access to the transferred funds in a way other than receiving a regular pension at retirement this may be considered an "unauthorised payment" for tax purposes"  It goes on to say that "unauthorised payments" will require a tax payment of at least 40%.
Does that mean that, once I've transferred my TPS Entitlement into my NEST Workplace Pension it will be "ringfenced" and I won't be able to take a 25% Tax Free Lump Sum post 55 y/o etc..?

Silvertabby

Shylock said:

OK, I've now received my "Guaranteed Statement of Entitlement" from the Teachers Pension Scheme detailing my guaranteed transfer value.  You were right!  I was shocked at the difference to just receiving a refund!
However, the Transfer Discharge Form contains the following wording:-
"I understand that after I transfer my benefits from the TPS, if I gain access to the transferred funds in a way other than receiving a regular pension at retirement this may be considered an "unauthorised payment" for tax purposes"  It goes on to say that "unauthorised payments" will require a tax payment of at least 40%.
Does that mean that, once I've transferred my TPS Entitlement into my NEST Workplace Pension it will be "ringfenced" and I won't be able to take a 25% Tax Free Lump Sum post 55 y/o etc..?

No.  It's just a warning against transferring your benefits into a scam 'pension liberation' set up.  ie, the ones that offer access before 55 and 'guaranteed' returns of stupid%.

Your NEST pension will give you the option of access at 55 ( or 57 if you are under a certain age) including  25% tax free cash.

capstoneh

Hi all
Sorry to resurrect an old post but my mum is having a similar problem at the moment. 

She doesn’t quite have enough service with her Teachers Pension (1yr 202 days) to make it payout. She’s due to retire at the end of 2025. 

The only other pension she has is a LGPS one and they have told her that she’s unable to transfer the TP in to LGPS. Does this sound right?
With no other pensions is her only option to ask for her contributions back? 

Many thanks 

capstoneh

Forgot to mention that she’s still working and paying in to the LGPS pension. Thanks

hyubh

capstoneh said:

Hi all
Sorry to resurrect an old post but my mum is having a similar problem at the moment. 

She doesn’t quite have enough service with her Teachers Pension (1yr 202 days) to make it payout. She’s due to retire at the end of 2025. 

The only other pension she has is a LGPS one and they have told her that she’s unable to transfer the TP in to LGPS. Does this sound right?

When did she leave active membership of Teachers...?

capstoneh

A long time ago - more than ten years