Pension refund

Gary1984

I've never understood the 'small amount of money' argument. It just means it's a small bad decision and not a big bad decision.

[Deleted User]

Simon11 said 'I am not sure you will see many people here recommended to obtain a refund on what is a brilliant pension scheme, although as a tax payer I don't mind saving some of our money later down the line.'

This kind of comment always irritates me a little as it sort of infers public sector workers do not pay income tax! That we are getting something for nothing.

Having worked as a teacher for 42 years and during that time having paid a percentage of my salary into the TPS, plus 47 years of NI payments, plus income tax I feel I have also done 'my bit'

Indeed when my state pension begins next year I will be paying over £4000 a year in income tax. I have no issue with this myself as that's how things work. 

I expect Simon11 did not intend his comment to be interpreted in this way but I do find it annoying.

SLD84

Lemon_dr1zzle said:

Why not transfer them to your teachers pension? 

This is probably what I will do. 

QrizB

SLD84 said:

As I have changed roles at work, I can no longer be part of the LGPS, this is not my choice. I have been moved into a different scheme.

You are already part of the LGPS, and (if you do nothing else) you will remain part until you die.

Pat38493

I can see why someone might think that because the amounts in these pensions are so small, it's not worth having the complications of them sitting out there.

However although some of the comments above are not exactly the height of empathy, I guess the reality is the the OP has found themselves in the situation where they cannot get the refund, so the only option is to keep it in a pension fund.

The other point is that even if the refund had been available, it probably would not have made long term financial sense to take the refund as the guaranteed amounts would have been lost forever.  With very small months of contributions it's probably not going to change the world, but it still rationally makes more sense just to keep them in the pensions.

Brie

One benefit of having different pension pots is that, when the time comes, you can deal with them in different ways.

Simon11

[Deleted User] said:

Simon11 said 'I am not sure you will see many people here recommended to obtain a refund on what is a brilliant pension scheme, although as a tax payer I don't mind saving some of our money later down the line.'

This kind of comment always irritates me a little as it sort of infers public sector workers do not pay income tax! That we are getting something for nothing.

Having worked as a teacher for 42 years and during that time having paid a percentage of my salary into the TPS, plus 47 years of NI payments, plus income tax I feel I have also done 'my bit'

Indeed when my state pension begins next year I will be paying over £4000 a year in income tax. I have no issue with this myself as that's how things work. 

I expect Simon11 did not intend his comment to be interpreted in this way but I do find it annoying.

It is an in-tongue joke that highlights how brilliant the Government pension schemes are. Nothing to do with income tax- it about highlighting that the ring-fenced inflation proof pension for which employees receive, in reality only pay a small amount in (even though you may consider the employee % quite high) and far too many people underestimate the value of these schemes. Doing some digging, for every pound paid into the local government pension, they will receive £9.24 back over their lifetime with the gap funded by tax payers.

As a tax payer, I have absolutely no problem as these are part of your t&c's which do off-set other cons for working for the Government. Heck, my partner is also a teacher and I honestly don't know how she does it for very long working hours, no workplace flexibility, rubbish benefits and low pay.

Thus even for a small Government pension, I would personally still consider keeping it providing the personal administration is worth it.