Pension

[muchlovex]

I recently started a part time job. When I started I was advised that I can opt-out of the government pension scheme. I have decided that I want to opt-out, but the problem is, is that I have already began to pay monies towards this pension.

Can I claim the money back that I have already paid in?

[dotty.]

why is it a government pension scheme?

[muchlovex]

that is what was offered when I started. I work for a government agency.

[muchlovex]

sorry, it is local government pension scheme

[dotty.]

ahhhh I see, but it;s not run by the government, who runs it? Is it Scottish Life or someone like that? It would always be worth contributing to a pension scheme now if you haven't started one yet in my opinion, the fact that this is a scheme used for this type of employee is a good sign, as they would have been very carefully selected .

[madmaggot]

Government schemes are still excellent; might be better to stay in.

[muchlovex]

Yes. I've worked for the same industry for 7 years now full time and paid 7 years into the local gvmt pension scheme. I have recently started part time and I would like to opt-out, as I am not sure whether this would be worth it.

I don't know who runs the scheme though.

[dotty.]

You can reduce the amount you pay in, but I wouldn't opt out completely, for one thing, with alot of these schemes you get free life cover, I am in a works pension and I automatically get 3 times my annual salary life cover,

[factor-fiction]

The employer will be paying in an amount which is greater than the amount you pay each month, and you save tax on the money you pay in. If you opt out you'll lose the tax break and miss out on the employer's contribution. If you leave and then decide to join later you'll probably not be able to join on the same favourable terms- in fact the scheme may be closed to new entrants.

[twix123]

Stay in the employers scheme.

1. The employer may also be making contributions, which they may not do with a private pension plan.

2. This may be a Final Salary scheme, which will pay a larger pension than a defined benefits scheme.

You need to carefully study any documentation that you have been supplied.

[craft1948]

I agree..........if your employer has a decent scheme stay in it.