Surrey county council owes me money and won't give any timeframe for repayment

boccabox

I worked at a school as a TA from September 2023 to end of January 2024 and during that time was having pension contributions taken from my pay each month (all the pay and pensions goes through Surrey county council). It's not loads of money, but is money I urgently need.

When I left, I had to fill out a form to exit the pension scheme and reclaim the money I'd paid in. This was in February. I've called and emailed multiple times since then and am getting absolutely nowhere. It took them 2 months to even pass the forms to the right department. They told me a month ago via email someone would call me about it, no one ever has. 

When I called last week they told me the system didn't work, today the phone lines are down for training. When they emailed me back today they only tell me they don't have any idea of timeframes... 

I need this money. Both my partner and I are in extremely precarious work situations, are on Universal Credit, have two kids and can't pay our mortgage. I don't understand how a council can take money and hold on to it with absolutely no timeframes, no indication of process and no recourse whatsoever! What can I do? Any ideas?

The most annoying thing about this is had I known the contributions wouldn't even end up in a pension until I'd worked there for 2 years I wouldn't have bothered signing up to the scheme in the first place, but I wasn't given this information.

JoeCrystal

Have you spoken to the LGPS directly? Here are their contact details.

https://www.surreypensionfund.org/contact-us

Remember that the refund would also be taxed, so it may be much less than you expect. Typically, they will contact you to ask what you want to do.

You are responsible for reading everything about your pension scheme, mainly since a simple-to-understand website contains all the information you need is available. You won't get all the bells and whistles if you never bothered to contribute. No, considering your family, I think it would be very foolish of the highest order not to contribute in the first place. Especially if the worst happens, the death benefit, three times your annual salary, may help your partner. 

Albermarle

I am afraid your experience of dealing with Surrey County Council on any matters financial, is unsurprising to me.
You will just have to keep calling them. 

Silvertabby

It's all a matter of priorities, I'm afraid, with death benefits/retirees always being dealt with before small refunds.

All I can suggest is that you ring them and explain your circumstances.

Note that your refund will indeed be taxed at 20%.  This is a specific tax on pension refunds, is nothing to do with income tax, and can't be reclaimed.  

Brie

Normally if you have contributed for under 2 years you get an option with pensions to transfer to another pension provider.  Whether LGPS allows this I'm not sure but it's one of the things to check up on in future jobs.

Hope they get things sorted for you soon.

squirrelpie

As JoeCrystal suggests, talk to the pension provider rather than the council. There's a useful page at https://blog.moneyfarm.com/en/pensions/pension-refund/ that explains some thing about your situation.
If you still have problems getting a refund after talking to the pension provider, I'd suggest talking to your MP and the local press.

Silvertabby

Brie said:

Normally if you have contributed for under 2 years you get an option with pensions to transfer to another pension provider.  Whether LGPS allows this I'm not sure but it's one of the things to check up on in future jobs.

Hope they get things sorted for you soon.

Yes, subject to a minimum of 3 months membership.  This would be the best option by far, as the transfer value is likely to be more than 3 X the post tax refund.  But I don't think OP would be interested in doing this.

Dazed_and_C0nfused

A transfer really is the best option, especially as the tax is non refundable.

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm045000#Taxation

Marcon

boccabox said:

The most annoying thing about this is had I known the contributions wouldn't even end up in a pension until I'd worked there for 2 years I wouldn't have bothered signing up to the scheme in the first place, but I wasn't given this information.

They can still end up in a pension scheme if instead of taking a refund you transfer your benefits to another pension scheme. That way you'll get the benefit of an employer contribution. Otherwise you'll only get a refund of your personal contributions, minus a flat 20% tax charge - tax which (as already mentioned) can't be reclaimed. 

Silvertabby said:

Brie said:

Normally if you have contributed for under 2 years you get an option with pensions to transfer to another pension provider.  Whether LGPS allows this I'm not sure but it's one of the things to check up on in future jobs.

Hope they get things sorted for you soon.

Yes, subject to a minimum of 3 months membership.  This would be the best option by far, as the transfer value is likely to be more than 3 X the post tax refund.  But I don't think OP would be interested in doing this.

...but at least they'll now know that's an option.

boccabox

Thanks everyone! Really helpful, I'd definitely prefer to transfer into my own pension fund if that's an option and it sounds like it'll likely be the best one, so I'll get in touch with them directly. Appreciate all the replies.

Dazed_and_C0nfused

boccabox said:

Thanks everyone! Really helpful, I'd definitely prefer to transfer into my own pension fund if that's an option and it sounds like it'll likely be the best one, so I'll get in touch with them directly. Appreciate all the replies.

I suspect you will be pleasantly surprised at the difference between the (net of tax) amount you would have received compared to the amount which can be transferred into a different pension 😉