Ticked wrong box on pension application (Teachers Pension)

Martin3737

I have just found out that I ticked the wrong box for my pension. I wanted to take a lump sum.

TP have processed it as monthly pension instead

Can this be rectified as they suggest that the application is non  rescind-able?

I need the lump sum, hence early retirement

Any advice/knowledge please?

Martin

Flugelhorn

is there a standard lump sum with this scheme or do you have to choose one ?

Marcon

Martin3737 said:

I have just found out that I ticked the wrong box for my pension. I wanted to take a lump sum.

TP have processed it as monthly pension instead

Can this be rectified as they suggest that the application is non  rescind-able?

I need the lump sum, hence early retirement

Any advice/knowledge please?

Martin

The website is pretty clear, I'm afraid:

If you want to convert some of your pension into a lump sum, you'll need to let us know before you retire. Once we’ve received your retirement application form, the decision you have made as to whether to take a lump sum or not, will stand and you can’t change your mind. Before completing your retirement application you must use our calculators to work out the effect that giving up part of your pension will have on your benefits.


There's nothing lost by contacting them immediately and asking if...but given the above, you are highly likely to get the answer 'no'.

Martin3737

You have to choose whether to commute and I said no by mistake

Silvertabby

Have your pension payments started yet?  The LGPS apply similar rules, but we would accept a 'ticked wrong box' claim as long as we hadn't actually processed the first payment.

TPS, however, are more likely to stick to the rules.  All you can do is ask (unless it's already too late).

QrizB

I thought I'd replied to this thread, but it seems it got lost in the aether.

Martin3737 said:

Can this be rectified as they suggest that the application is non  rescind-able?
I need the lump sum, hence early retirement
Any advice/knowledge please?

The TPS commutation factor is a pretty poor 12:1. You might find that you can get much the same result by taking a loan or mortgage for your "lump sum" and making the payments from your excess TPS pension income.

HedgehogRulez

You might find this error to be serendipitous and ultimately in your favour..,

Flugelhorn

HedgehogRulez said:

You might find this error to be serendipitous and ultimately in your favour..,

in the long term yes but they said "I need the lump sum, hence early retirement" - presume not keen to now borrow money for whatever the lump sum was needed for 

Cobbler_tone

As the OP says they’ve processed it, I assume they’ve had a payment. 

If you’d ticked the wrong box and they refused to change it three days later when you realised I’d call them a name you can’t use on here. We have read time and time again that no organisation is that slick! 

Hopefully you get a result or raise the money elsewhere and pay it off. Hassle but could be a blessing.
Good luck.