The opt-out form procedures have changed. Before if you elected to opt out the time for this would be linked to when the Teachers’ Pension Scheme received the form. From February 2019 this timing was changed. Now the changes come into effect when the employer receives the form.
What does it mean to opt out?
You can opt out of your teachers’ pension after a three-month period of contributions. This opt-out means that in periods of hardship, you can choose to use the money in your salary. The decision also means you will be reducing your benefits in retirement and your employer will not contribute either. It is not advisable to opt out; however, for some people, it is a necessity. It is vital you seek professional financial advice so that you are made aware of all the facts.
Are you using the right form?
The changes in the date of receipt by whom is significant because it impacts the online and paper form you may submit. If you have sent an old form after 4th February 2019, then it will have been rejected. It is a good idea to check the date on the form to make sure it is the version after this date.
The content in this article was correct on 28th March 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on the financial planning for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.