[Mildred]

Very off topic but as there are so many more intelligent people on this site than myself perhaps someone can answer my question.

Today I unexpectedly received a cheque for £410 in the post. I left Saga at the beginning of October and they have decided to refund my pension contributions. Sounds good, but I assumed that my two years pension contributions would count towards my pension when I'm older.

Does anyone know if it is usual to be refunded payments on leaving a Company and whether I should have been asked whether I wanted to leave the pension scheme. Also would my £410 have been worth more in the pension scheme.

HELP

[Terry&Sophie]

Hi Frances,

I'm definitely not an expert but it seems no-one else has any advice so I thought I'd share my experience in case it's of any use.

I left the company I was working for on 3rd January (the company was contributing to my company pension which was held with Standard Life). I phoned the pension company to tell them I'd left and ask what I needed to do and they told me that the pension had automatically changed from a company pension to a personal pension. The money would stay there earning interest unless I choose to remove it, and I can carry on paying into it if I want to. I think they're going to send me a statement and let me know my options.

It seems a little strange for them to refund your contributions - I would've thought they would've gained some interest in the time you've held the pension? Unless this is a different sort of company pension to the one I had...?

Sorry I can't help more, maybe you should contact them and ask? Or have a look and see if you've got any original documents about it that explain what happens if you leave the company.

Good luck and let me know if you get it sorted.

Sophie

[Mildred]

Sophie,

I've been struck down with this stomach bug doing the rounds since Thursday night. As soon as I know I can be away from the bathroom for more than 10 minutes I'm going to give Saga a call. I'm just glad I already receive an ill-health pension from my old job -at least I've got that to full back on which is quite a lot each month.

I've got a feeling, reading previous messages that if we do take the NZ plunge I will no longer get this index linked. Dilemas, Dilemas!

Thank you for your help.

[kiwidebs]

I'm no help on the pension front, but just wanted to send my sympathies on the tummy thing. We've all had variations of this bug since Xmas and I've been off work for two weeks cos of it!! Not fun - especially for my 19 month old. Hope you are feeling better soon - and let us know what you find out when you get a chance to phone Saga.

Debs

[veronica]

Pete used to be a Financial Controller for a big co. in the UK so I have asked him his opinion. He says that when you joined the scheme you should have received a booklet outlining the conditions of the fund and that should have the info you need in there. Failing that make contact with either the trustees or the administrator of the Fund and they should be able to help. He can't offer any other help as each fund is so different.

[Mildred]

Give him a big thank you from me!

[Nicola]

In the past I have been able to reclaim the money from my pension scheme depending upon how long I have been in my current post.

With my current scheme, I am not able to do this. I have already checked with them and they say I can only pay int to the pension for 3 years(or possibly 4 years) after I leave the UK. They also gave me a whole load of details on how to transfer my pension to a company in NZ, which is the option I will probably take.

Hope this info is of some use.
Nic

[Mildred]

Just come across my old conditions of service and if you are in the pension scheme for less than 2 years they refund the money less 20% tax! Although I worked for Saga for 2 years, now thinking back you had to be there 3 months before you could join the pension scheme which is why they have done this.

Now what shall I spend my £410 on???

[debnjohn]

Just come across my old conditions of service and if you are in the pension scheme for less than 2 years they refund the money less 20% tax! Although I worked for Saga for 2 years, now thinking back you had to be there 3 months before you could join the pension scheme which is why they have done this.

Now what shall I spend my £410 on???
If it's any consolation (not really I know), then they take the tax off the refund as your contributions would have been tax-free in the first place. But still pretty poor for a 2-year 'savings' plan!
John.

[Mildred]

Thanks John,

I only worked 26 hours a week so at least this refund isn't based on full time working