Pension complications

tabath

I’ve got a very complicated situation as I’ve discovered in the last year that I’m quite ill and the prognosis is not good.

My pension arrangements had been to retire at 65. I’m 60 now but it’s almost certain I will have to retire now due to ill health.

This is means a change to my plans.

Obviously can’t get my state pension yet.

I have a SIPP but its growth to my target won’t happen for another 2 years so I really don’t want to take it yet even if it means a couple of lean years.

I have some teachers pension which I want to take and I think I will get tier 2 ill health enhancement.

Part of it is in a 80th final salary scheme with a lump sum , and part of it is in a 60th career average scheme with no lump sum. This was because I went into the profession and left then returned 6 years ago.


It’s going to take sometime to sort out my Ill health retirement but the 80th scheme has a NPA of 60 so I can take that now, I thought I would get it automatically but I apparently have to apply for it.

Im still officially at work but off atm.

My question: Is there any reason I shouldn’t take my 80th scheme pension now? Will my ill health enhancement be affected if I do? Does taking it and the lump sum I get have any ramifications for taking my SIPP when it’s hit my target.

Thanks for any help and advice .

DRS1

I assume you have read this?
Ill-health retirement guide
At the end it talks about the possibility of getting an estimate of benefits from My Pension Online.  No idea if that lets you play with the circumstances (eg taken NPA60 benefits/not taken NPA60 benefits) but maybe have a look.

I may not understand how it works but if you are already 60 then surely the NPA60 benefits won't get any enhancement for ill health Tier 2 - the enhancement is 50% of the potential service up to NPA and there is no potential service up to NPA.  So it would only be the CARE bit that could be enhanced.

But I did not read closely enough to tell what the rules are where you are in both CARE and NPA60 sections.

There is also a whole load of stuff about whether you are in service or out of service.  As you say it is complicated.  Good luck

tabath

Thanks for even looking at it. Yes , it’s complicated! Retirement age of the 60th scheme is 67 so I would get some enhancement. I can’t use their calculator to get a estimate as there is an added complication that my employer paid contributions into the LGPS scheme instead of the TPS, I’m in dispute with them over this at the moment.

Silvertabby

tabath said:

Thanks for even looking at it. Yes , it’s complicated! Retirement age of the 60th scheme is 67 so I would get some enhancement. I can’t use their calculator to get a estimate as there is an added complication that my employer paid contributions into the LGPS scheme instead of the TPS, I’m in dispute with them over this at the moment.

Is this in respect of your current post?  If so, what is your job title?   

Marcon

tabath said:

Thanks for even looking at it. Yes , it’s complicated! Retirement age of the 60th scheme is 67 so I would get some enhancement. I can’t use their calculator to get a estimate as there is an added complication that my employer paid contributions into the LGPS scheme instead of the TPS, I’m in dispute with them over this at the moment.

Were you employed as something other than a teacher - for example, a teaching assistant?

tabath

I’m TPS qualified, contractually it’s due.

Marcon

But were you actually employed as a teacher during the period you are disputing? I'm sorry to labour the point but it's important.

Silvertabby

As Marcon says.  If you weren't actually employed as a teacher then your LGPS membership may be correct.

tabath

The TPS membership isn’t an issue , I job share and the other person has their contributions paid to TPS. TPS have said I’m allowed, the Union have said I qualify. I’ve taught classes , I’m QTS. I’m just interested in answers to the other questions thanks.

Silvertabby

OK, just needed confirmation.  I'm a retired LGPS administrator, and the TPS/LGPS confusion happened more often than you'd think.

First thing to do will be to sort out your mis-directed contributions and update your TPS records.  Once that's done, do you know if you will have two separate records (with the earlier service being deferred) or if the two will be combined? 

Marcon

Silvertabby said:

OK, just needed confirmation.  I'm a retired LGPS administrator, and the TPS/LGPS confusion happened more often than you'd think.

First thing to do will be to sort out your mis-directed contributions and update your TPS records.  Once that's done, do you know if you will have two separate records (with the earlier service being deferred) or if the two will be combined? 

Do you know if there's any chance OP might be just as well (or possibly even better) off if they don't dispute the contributions going to the LGPS rather than TPS, and look for ill health retirement from the LGPS?