help teachers out there...opt out of pension?

[zoe1234]

Hi,
Has anyone opted out of the teachers pension scheme on here? What happens and how long does it take and is it possible to rejoin later, say after a few years of not being in it. I've been teaching for 8 years and I'm 38. What happens to the benefits you would have accrued if you stop and start it?

The thing is, I am a single mum of two with no other income [no maintenance etc] except my wages and I am worried about when the new pension deal starts as I can't afford to pay the extra on top of my student loan. Sounds a bit dramatic, but I'm so worried.

Thanks for any help in advance!

I am in the scheme and although will be difficult will try and stay in. No other pension will be anywhere near as good. I think you can opt out and go back (possibly 2 pots though) but am sure someone else can advise.

Hello

I am 40 and I taught for six years paying into the teachers' pension fund.
When I left I was advised by the school bursar to not have a one-off payout but to leave it 'frozen' - it would still accrue some interest but obviously not much as I would no longer be paying into it.

After two years' sabbatical when I returned to teaching I started paying pension again - somewhere I have a crucial piece of paper confirming how many years in total I have paid into it.

I then left teaching again and started doing a less paid job in school and was allowed to start a new pension fund for council employees. Unlike the teachers' fund this one sends me annual notices what my pension in now worth - bugger all - and its one-off payment terms - also bugger all.

At some point I need to contact Teachers' pensions and make sure they still have me somewhere on the system - would hate to see my payments disappear/not be accounted somewhere.

Still think not worth having a quick-cash one-off payment though as it tends to screw you in the long run? But the econmic climate benefits and pensions are ever changing in the current climate.

I think as a graduate now or a teacher returning to the profession you no longer have favourable terms but as I am no longer in the uk I am shoddy on the details - your union should be able to confirm.

thanks you two.

i know the pension is an ok one, but when they start to take the extra and then that coupled with my student loan, me and my two kids will be left with £33 per week for food and clothing. so i cant afford to think about my future as the now counts for more! and you can't chose a monthly amount to repay your student loan-it's a set amount no matter what.

thanks for your advice so far guys.

www.teacherspensions.co.uk/members/members_addv.htm

Leaving the TPS

Q. What happens to my pension when I leave pensionable employment?

A. If you leave pensionable employment there are four options open to you:

Leave your pension credit in the TPS.
If you are over 55 you can take actuarially reduced benefits.
Transfer your pension credit to another form of pension provision.
If you have not qualified for benefits you can take a repayment of your pension contributions.

When you leave, your employer should issue you with fact sheet, Leaving Pensionable Employment, which explains these options in more detail.

www.teacherspensions.co.uk/members/members_faqs.htm#anchor7

I would not opt out and try to opt back in in the future.

You are on a gravy train scheme at the moment, and if you leave and join in in the future, you will be on a more realistic scheme.

could you increase you income otherways -maybe tutoring? taking in a lodger?
moneysaving expert is very good for budgeting as well

I would take on some extra work to pay my pension tbh. How much do you have to make up a month.

I think you should try to stay in. I'm a teacher and I was in the private sector before. There is still nothing as good as a public sector pension. The student loan will end - how long have you got? How about marking? I do loads of that. Tutoring? Can pay well.

NEVER leave a final salary scheme unless you are forced to

No no no! Don't opt out!

Remember your deductions are done after pension atthe moment so, if you opt out, your tax, Nat insurance and student loan contributions will all go up. You won't take home as much extra as you think.

The break in service will impact on what you get in the end.

Even with the changes, it's still oneofthe best pensions you'll get. In the long term you can't afford not to pay in