Pulling out pension contributions.

Kristoph

Kristoph

Kristoph

Soldato
Joined
11 May 2007
Posts
8,303
I'm sure I'll get some mixed responses with this one, but bear with me.

I started my first pension a couple or so years ago, a local government pension scheme. The contributions weren't a huge amount, but I finished my employment earlier this year.

I'm in a situation where the money would be much more beneficial to me now, than the return in 2050 something..

As I was in the scheme for less than 2 years, am I right in thinking I am able to withdraw the funds, minus 20% tax?

(I am about to start contributing to my new employers scheme, where I'll be roughly putting away 15% a month (including employer contribution). Which with future earning hopes/potential, shouldn't be a bad start to some sort of retirement fund).
 
This is pretty much the case.

If you have less than 2 years service you will be offered a refund of conts minus tax. If your scheme is contracted out of the State Second Pension (S2P) your refund will also have a deduction to pay your service back into S2P.
 
Contacted the administrator today for the county, apparently I can't. That was the length of their explanation.

Some more digging around, I found this:

http://www.yourpension.org.uk/Files/Files/In The Scheme/2. LeavingtheLGPSA5April2011.pdf


Seems it could only be done if you were in the scheme for less than 3 months.

Some more digging I found a draft consultation on the 2014 Government Pension scheme, which states:

18.
—(1) If a person’s qualifying service in the Scheme determined under regulation 3(7) (active membership) is for less than two years, that person is entitled, when that active membership ceases, to be repaid by the administering authority—
(a)
any contributions paid under or in accordance with regulations 9 or 10 in relation to that active membership;
(b)
any additional contributions paid by the person under regulation 16 in relation to that active membership;
(c)
the realisable value of any AVC or SCAVCs paid by the person, or SCAVCs paid by the Scheme employer under a salary sacrifice scheme, under regulation 17 in relation to that active membership (other than such contributions paid for life assurance cover); and
(d)
any contributions included in a transfer payment received from a registered pension scheme or from a pension scheme or arrangement of a European Pensions Institution.
Click to expand...

Would this new legislation apply to past members?
 
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