Transfer out of police pension scheme?
Discussion
I have just resigned as a police officer and am within notice period so am still technically employed by them; although I shall do no more work.
I am considering the value of transferring my pension from their final salary scheme into something private. A lot will say that to do so would be financial suicide. That does not apply to me. I am 24; so have another forty years of working ahead. I was only employed by them for three years so the pot is tiny. It will be insignificant in later life.
It would be of great benefit to be able to have a refund of the contributions. I cannot; this is against the rules. I estimate I have contributed £7-8000. That money would be a god send. I am going to work in the private sector so it may be possible to transfer some of the police money to this new scheme. I don't know.
With private schemes is it possible to remove money once it has been contributed? If so I would deposit the police pot and then withdraw a couple of thousand to smooth things over. Can anyone advise?
I am considering the value of transferring my pension from their final salary scheme into something private. A lot will say that to do so would be financial suicide. That does not apply to me. I am 24; so have another forty years of working ahead. I was only employed by them for three years so the pot is tiny. It will be insignificant in later life.
It would be of great benefit to be able to have a refund of the contributions. I cannot; this is against the rules. I estimate I have contributed £7-8000. That money would be a god send. I am going to work in the private sector so it may be possible to transfer some of the police money to this new scheme. I don't know.
With private schemes is it possible to remove money once it has been contributed? If so I would deposit the police pot and then withdraw a couple of thousand to smooth things over. Can anyone advise?
Unfortunately you can't get your contributions back even if you transfer your pot to your new employer's scheme.
If your new scheme is defined contribution also known as money purchase then they normally allow you to transfer in previous pensions. Some final salary schemes also allow this but they are becoming rarer.
Whether it is financial suicide depends on your circumstances, you'll need some independent advice. In most cases it is not the right move. Remember your police pension will increase from now to your retirement broadly in line with inflation. Appreciate that 3 years worth of contributing doesn't seem much but it is a start.
If your new scheme is defined contribution also known as money purchase then they normally allow you to transfer in previous pensions. Some final salary schemes also allow this but they are becoming rarer.
Whether it is financial suicide depends on your circumstances, you'll need some independent advice. In most cases it is not the right move. Remember your police pension will increase from now to your retirement broadly in line with inflation. Appreciate that 3 years worth of contributing doesn't seem much but it is a start.
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