Pension, Final Salary - My Brain Hurts!

Marcon

bombproof said:

Thanks DRS1 ( I got TP woman to guide me today!)
 a quick post update. I am now Bombproof btw 
I met a really good Financial advisor this a.m. (V. helpful gent) and he  was all over the TP website looking at all the Docs and He too couldn`t figure out what the hell was going on either! (He said my finances are OK overall, which was good to hear)
Show me the paragraph  on TP site where it says clearly `do this at 60 or lose money`... Or at least `you can choose to do this`?? no one can find it.

Somebody oozing sympathy and telling you what you want to hear doesn't automatically make them a 'really good financial adviser', especially if they are going to rely on a website for their information about a scheme with which they are apparently totally unfamiliar. 

Why not use someone who knows the scheme inside out and can advise on the basis of hard knowledge rather then a bit of googling and a phone call to the scheme? I wouldn't be taking advice from someone who says he can't work out how the scheme operates.

bombproof said:

My guy understood `why` TPS and the Govt (who pay)  wish to maintain a cloud of `mystery` about this  potential pay-out ...........as do not want us all cashing in...... so  hence do not broadcast/advertise this widely (at all?)  And that it is obviously spread  only by word of mouth. 

He's talking utter nonsense. 

bombproof said:

He also suggested that TP should have this with flashing lights on their site for all who are turning 60 and it is remiss of them not to.
He was also in agreement  with me that my Union NEU should have had it in flashing lights or sent us a `heads up` at 60 !!!!!!! they are meant to look after members as a duty of care surely? (I am fuming with them and their `oooh its not our role to advise` their attitude has been snotty and defensive too...  NEU have lost a life-time member now I am changing Union)
AND furthermore  he also agreed that my School itself should have given me a heads up at 60 (in spite of having a revolving door of HR and finance managers)   

It is NOT the union's role, or your employer's, to advise. They are not regulated individuals.

Why not go back to Wesleyan Finance, who are thoroughly familiar with the scheme and are likely to be very well placed to advise because they are familiar with the relevant regulations governing the scheme.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/81653433/#Comment_81653433

This leaves the question of whether you receive arrears if you are in pensionable employment when you reach the NPA

From

https://www.teacherspensions.co.uk/members/planning-retirement/types-of-retirement/normal-age-retirement.aspx#:~:text=If you delay making your,will be subject to tax.

If you reach your NPA but don't take a break in pensionable service at that time but at a later point, you should note that your pension will be payable from the date of your break, rather than your NPA. This means no arrears of pension will be payable.

Abatement occurs where you enter, or continue in, pensionable employment (both are classed as re-employment) following your entitlement to your final salary pension. Your final salary pension is reduced if your new or continuing employment earnings exceed your salary of reference. 

This means that if you remain in the same employment after the entitlement to a final salary pension was triggered, you’re less likely to receive any arrears of pension – which ordinarily would be payable from the entitlement as the abatement provision is likely to apply. We'll make this assessment when we process your pension award as and when you apply for it. 

Please note that abatement only applies to the annual pension, not to any lump-sum entitlement or conversion of pension to lump sum option you take, and the lump sum will still be paid to you even if abatement does apply to your annual pension.

In addition to the above, once you become entitled to receive your pension at your NPA, providing you are opted out of the Teachers' Pension Scheme, any period of opted in service following this will be treated as Additional Service After Retirement (ASAR).

DRS1

In addition to the above, once you become entitled to receive your pension at your NPA, providing you are opted out of the Teachers' Pension Scheme, any period of opted in service following this will be treated as Additional Service After Retirement (ASAR).

That sounds like a health warning.  Better explore what it means.

Marcon

DRS1 said:

In addition to the above, once you become entitled to receive your pension at your NPA, providing you are opted out of the Teachers' Pension Scheme, any period of opted in service following this will be treated as Additional Service After Retirement (ASAR).

That sounds like a health warning.  Better explore what it means.

There's considerable irony in the fact that the country's best gold-plated defined benefit schemes for public sector workers are so ridiculously complicated that far from seeing them as the massive benefit they are, people like OP are furious and frustrated and blaming everyone and anyone they can think of for their (entirely understandable) confusion.

A good first step for OP would be to use an adviser who fully understands the scheme. What makes someone who has apparently admitted that they can't work out what's going on 'really good' and a suitable choice to advise on TPS? Hopefully OP will see the light and seek advice from someone who can provide accurate and well informed advice based on extensive knowledge of the TPS, which will be far better for their financial health (and peace of mind).

xylophone

A good first step for OP would be to use an adviser who fully understands the scheme.

Wesleyan........?

https://www.wesleyan.co.uk/pensions-and-retirement/teachers-pension

The Teachers’ Pension Scheme (TPS) offers great benefits to hard-working educators across the UK, but it isn’t the easiest to understand. Through our specialist guides, you can get help with your pension and retirement planning.

DRS1

xylophone said:

A good first step for OP would be to use an adviser who fully understands the scheme.

Wesleyan........?

https://www.wesleyan.co.uk/pensions-and-retirement/teachers-pension

The Teachers’ Pension Scheme (TPS) offers great benefits to hard-working educators across the UK, but it isn’t the easiest to understand. Through our specialist guides, you can get help with your pension and retirement planning.

That is where he started and who warned him about the pension he has been missing out on.

Marcon

xylophone said:

A good first step for OP would be to use an adviser who fully understands the scheme.

Wesleyan........?

https://www.wesleyan.co.uk/pensions-and-retirement/teachers-pension

The Teachers’ Pension Scheme (TPS) offers great benefits to hard-working educators across the UK, but it isn’t the easiest to understand. Through our specialist guides, you can get help with your pension and retirement planning.

Indreed - already suggested because Wesleyan are well known and respected for their knowledge of TPS:

 Marcon said:

Why not go back to Wesleyan Finance, who are thoroughly familiar with the scheme and are likely to be very well placed to advise because they are familiar with the relevant regulations governing the scheme.

Any advice really does need to come from people familiar with the source documents. Listen to today's episode of MoneyBox on Radio 4, and it is all too easy to spot that it's (shall we say) optimistic to assume that every phone call made to TPS is going to get a clear, accurate and comprehensive reply. 

xylophone

That is where he started

already suggested 

I had read your previous very pertinent contributions.....the smiley was mildly ironic...... 

Marcon

xylophone said:

That is where he started

already suggested 

I had read your previous very pertinent contributions.....the smiley was mildly ironic...... 

Sorry - I was just pleased to see someone else encouraging OP to opt for an adviser who really knows the scheme. I don't understand why they would do otherwise, especially when the TPS is notorious for its complexity.

xylophone

To be fair to the OP,  I have to say that when I was young (ah, the dear dead days...) and started employment offering a DB pension, I didn't give it any thought - it was just there....and when I changed employer, it was the Administrator of my new DB Scheme who made contact with me to ask if I wanted to transfer in the benefits from my former scheme - I'm sure I wouldn't have even thought of it!