less than 2years in Final Salary Pension

eldy123

Hi,

I have a USS Superannuation I started back in early 2002 but left 7 months
later as I left the company.

Looking at the letters I received from USS it seems it would only pay £170 a year at retirement. (I have about 34 years to go till retirement)

My IFA said it is not worth keeping due to the small size and for him to review it would cost me £250. He said I should get a refund on the contributions I made (as it is less than 2 years contributions) and put it into my current pension.

I heard that final salary pensions are good to have but is it true that its not worth keeping in my case?

Retired_I.F.A.

I'd say it's best left where it is because if you get a refund whatever that may be you will find it's a refund of your contributions less an amount to put you back into serps for that period presuming it was a contracted out scheme and although that refund may be with interest if you put it into your personal pension it's unlikely that it and the serps you'd get will top the pension left where it is as to get that possibility you'd need the employers contribution also.

A transfer value would be comparable but it's not worth the cost of analysing the benefits with it being so small. Too small a value probably for any personal pension provider to accept it as a one off payment anyways.

Biggles

Retired_I.F.A. wrote: »

I'd say it's best left where it is because if you get a refund whatever that may be you will find it's a refund of your contributions less an amount to put you back into serps for that period

It will also be less a deduction for income tax, as you will have obtained tax relief on the original contributions.

EdInvestor

The USS is an excellent scheme and also part of the Govt "Transfer Club", so best to hold on to it as you may be able to activate it in future if you end up in another Govt type job.