Short Service Refund Lump Sum

MoneySaver_1978

In what circumstances can someone claim back their pension contributions? Is there a template letter available? I fully understand the implications of what I am asking, I have a teacher pension. This was a scheme I paid into for 17 months from January 2020 to April 2021. Many thanks in advance.

MX5huggy

Because you’ll be taxed on it and loose employer contributions it’s normally preferred to move it to a new scheme either your new employer if they will take it or a SIPP. 

Dazed_and_C0nfused

MoneySaver_1978 said:

In what circumstances can someone claim back their pension contributions? Is there a template letter available? I fully understand the implications of what I am asking, I have a teacher pension. This was a scheme I paid into for 17 months from January 2020 to April 2021. Many thanks in advance.

Teach yourself a bit about pensions and then you will realise what a terrible financial choice that would be.

Go with MX5huggy's suggestion and you will be smiling all the way to the bank.

dunstonh

I have seen figures where the transfer value was 10x the value to be returned as a refund.   What is the transfer value vs the net refund value in your case?

MoneySaver_1978

Thanks, to avoid confusion it was a pension that I was automatically opted into with a private employer, not part of the teacher pension scheme. I as I understand I can't transfer it to the teacher pension scheme. 

MoneySaver_1978

dunstonh said:

I have seen figures where the transfer value was 10x the value to be returned as a refund.   What is the transfer value vs the net refund value in your case?

Thanks, I will look into this.

MoneySaver_1978

Still a long way off retiring but I am starting to think about getting my affairs in order. Definitely need to educate myself!!Dazed_and_C0nfused said:

MoneySaver_1978 said:

In what circumstances can someone claim back their pension contributions? Is there a template letter available? I fully understand the implications of what I am asking, I have a teacher pension. This was a scheme I paid into for 17 months from January 2020 to April 2021. Many thanks in advance.

Teach yourself a bit about pensions and then you will realise what a terrible financial choice that would be.

Go with MX5huggy's suggestion and you will be smiling all the way to the bank.

Dazed_and_C0nfused

This was the penultimate comment on a thread by someone inquiring into a refund of contributions.  Not sure if the £853 was before the (non refundable) tax or after but it shows what can be at stake.

As others have said, definitely look into transferring if you can. My mum was offered £953 refund with no mention of transferring but when she inquired she received a transfer value of £8509.

https://forums.moneysavingexpert.com/discussion/6286557/pension-contributions-refund-20-years-late/p1

dunstonh

MoneySaver_1978 said:

Thanks, to avoid confusion it was a pension that I was automatically opted into with a private employer, not part of the teacher pension scheme. I as I understand I can't transfer it to the teacher pension scheme. 

If it's not a DB scheme but a DC scheme then most of these do not operate a refund of contributions for short service.

hyubh

MoneySaver_1978 said:

Thanks, to avoid confusion it was a pension that I was automatically opted into with a private employer, not part of the teacher pension scheme. I as I understand I can't transfer it to the teacher pension scheme. 

The TPS accepts non-Club transfers in (so, including auto-enrolment DC), so long as the request is made within 12 months of becoming eligible for the TPS. Presumably you've been a member of the TPS longer than that, given what you say...?