Cashing in a pension

Silvertabby

xylophone said:

You had said

 I do have a trivial pension too which I haven't cashed in whych is about £8000, 

so I assumed a DC pot but you have clarified

The £8000 one is an old teachers pension

So this is a  deferred DB pension.

You are being offered this as a "small lump sum" commutation? Again taking it would not trigger the MPAA or affect your contributions to your LGPS pension.

https://www.mandg.com/pru/adviser/en-gb/insights-events/insights-library/small-pots-defined-benefit-trivial-commutations#:~:text=A small pot payment (properly,(personal pension plans etc.)

https://www.teacherspensions.co.uk/-/media/documents/member/documents/tax-section/trivial-commutation-lump-table--v1.ashx?rev=0dc2f854a056481dbfa1b75cccbccc89&hash=A954A24422088BBF070CB046F738D92D

It could have been possible to transfer this   TPS pension into LGPS within a year of joining LGPS but presumably that window has closed.

What exactly is the £3000? Is it a DC pension?

If so, you might wish to consider opening a SIPP and arranging the transfer in of both the Zurich pension and the £3000.

You could then decide on how you wished to access the SIPP.

With regard to combining your LGPS pensions, you would need to think carefully about whether this was to your advantage.

Silvertabby is a former LGPS administrator and might be able to throw some light on this. You could try a PM.

https://forums.moneysavingexpert.com/discussion/6292085/lgps-guidance-not-advice-when-can-i-walk-silvertabby-and-others-please-guide-me-thank-you

It really depends on the status/dates/pensionable pay relating to each record.

OP - can you post the dates you started and left your first post, the date you started your current post, and your whole time equivalent pensionable pay as at the date you left your first post and your current pay.  Note that the definition of pensionable pay for the pre 2014 final salary linked pension isn't the same definition for CARE accruals - but that may only be an issue if you are paid any non-contractual overtime/extras.  

lookstraightahead

Thank you silvertabby I will work on that and post it up as that's my next issue

to you all thank you. Re the 42,000, I have spoken to Zurich and I can either take it all now or transfer it and draw down, so I just need to work out my finances and tax. It's actually 44,000 now which makes me want to keep it in a plan if I'm honest . It's a nice problem to have