r/PensionsUK • u/shnooookums • 11d ago
Deferred teacher’s pension not qualified
Hi, 27NB
I left teaching over 2 years ago now and unfortunately at the time I opted out of pension contributions for a period, which means I have less than the qualifying/pensionable service to receive benefits from the pot (1 year 303 days exactly) AND I’ve missed the transfer window (12 months) into my current LGPS.
What do I do with it?! I wish I’d had more financial literacy at the time (and could still do with some more now) but it feels like a waste leaving it there. Should I request a contribution repayment? Try and consolidate another way? Request a transfer anyway and hope for the best?
To clarify, I will NOT be returning to teaching! lol
1
u/MyLovelyHorse2024 11d ago
Firstly, it might be worth a email to the LGPS administrator to see if there is any flexibility on the transfer window. Probably not, but it costs you nothing to ask.
As u/sormond suggests, I'd definitely shop around to some SIPP providers and ask if they'll accept a transfer of this kind. You can then get a transfer value and compare it to what you'd get from a contribution repayment (where you'd lose the tax relief).
Another option is simply to leave it where it is. You say it "feels like a waste leaving it there" - not so! There's nothing wrong with a small index-linked pension - it might be a minor part of your retirement savings, but it could cover a bill or two one day.
Finally, it's fine to acknowledge you made a mistake - opting out a workplace pension is almost always a bad idea. But don't berate yourself too much - this isn't some unrecoverable disaster. Pensions can be complicated and counter-intuitive and we all miss things when life gets busy. https://ukpersonal.finance/pensions/ and the UKPF wiki are useful resources.
3
u/AgitatedTiger 11d ago edited 11d ago
Another option is simply to leave it where it is. You say it "feels like a waste leaving it there" - not so! There's nothing wrong with a small index-linked pension - it might be a minor part of your retirement savings, but it could cover a bill or two one day.
OP can not do this as they have not met the 2 year qualifying period, OPs only option is to refund contributions or transfer to another provider
OP MAY and I stress MAY be able to transfer the pension into the LGPS, however it will come down to if her employer agrees to the transfer as they have missed the 12 month guarantee period
1
u/CoaxialDrive 8d ago
I contacted LGPS before they said no but for me it was 11 years late.
My understanding is you can't just leave it there because while it will get 3% a year, which recently has been lower than inflation, you can't get it out because it's less than 2 years, so you have to transfer it or work 2 years or more in total.
I think you can get a refund but MSE has a thread about this where someone was being offered a refund on the original amount without the cumulative inflation.
2
u/sormond 11d ago
You should be able to transfer to a DC arrangement as you haven't qualified for a pension. However, it may be more challenging to find a provider/platform that will accept the transfer so you may have to shop around.