How does part-time work affect my pension benefits?
If you take up part-time teaching after 1 January 2007, you will automatically be a member of the scheme. If you are a part-time teacher and have previously opted out of the scheme you will remain opted out on 1 January 2007, and until you change your contract of employment. For further information about part-time service, see the Working part-time before retirement fact sheet.
How can I maximise my pension benefits?
You can purchase additional pension for both yourself and your dependants. The fact sheet Additional pension outlines these arrangements. You can also take out an AVC with Prudential or make other pension provision with another independent pension provider.
Can I transfer my Free Standing AVC into my Teachers’ AVC fund?
Yes, you can transfer Free Standing AVC funds to the in-house AVC facility with Prudential.
Can I use my AVC fund to purchase additional pension?
It is not possible to purchase additional pension in the TPS with funds accrued under either an AVC, or Free Standing AVC arrangement, or by using a tax-free lump sum from another pension arrangement. You should check with your tax office if you are unsure.
How do I find out what benefits will be due from my AVC?
The in-house AVC facility is administered by Prudential so you should contact them with any queries regarding the amounts that may become payable. The address for enquiries is: Prudential, Craigforth, Stirling FK9 4UE Telephone: 0845 0700 007, or visit their website www.pru-teachers.co.uk
Will I receive my teachers’ AVC benefits when I receive my TPS pension?
Payment of your teachers’ AVC benefits does not have to be linked to payment of your TPS pension. You could access your teachers’ AVC at any time from age 55. If youhave a Free Standing AVC arrangement, you will need to contact the AVC provider as their rules can vary.
Can I transfer in from another pension scheme?
When you join the TPS, you can transfer pension credit from a previous scheme including an overseas scheme, as long as the previous scheme meets Her Majesty’s Revenue and Customs (HMRC) requirements and you apply for a transfer within 12 months of entering pensionable employment. Ask your employer for a transferin pack, which includes forms for you to complete and request for information from your previous pension provider. For further information about transfers, see the ‘Transfer’ leaflet.
What happens to my pension when I leave pensionable employment?
If you leave pensionable employment there are three options open to you:
- Leave your pension credit in the TPS. This is called ‘preservation’. These preserved benefits increase in value each year at a rate equivalent to the Retail Prices Index (RPI).
- Transfer your pension credit to another form of pension provision.
- If you have not qualified for benefits you can take a repayment of your pension contributions.
When you leave, your employer should issue you with fact sheet, Leaving pensionable employment, which explains these options in more detail.
Can I transfer my TPS pension to another pension scheme?
If you want to transfer pension rights out of the TPS, TP needs a formal request from your new pension provider. When TP receives the request, a guaranteed statement of entitlement will be issued, normally within three months. Once the signed acceptance and a request for the transfer value is received from your new provider, TP will issue the payment. For further information about transfers, see the ‘Transfer’ leaflet.
I am leaving teaching, can I continue paying into my teachers' pension?
No, but you can purchase additional pension either before you leave or after you return to teaching.
Why do I only get approximately 55% of my contributions, if I opt for a repayment?
The amount you will be repaid will be the contributions you have paid into the TPS together with compound interest added at 3% per annum. Two deductions are made, one to pay back your entitlement in the State Pension Scheme and the other, a standard charge for tax at a flat rate of 20%. For further information, see the Leaving pensionable employment fact sheet.
What is payable when I die?
When you die a lump sum death grant is payable and a pension may be paid to your dependants. For further information about death grants and pensions, see the ‘Survivors and death benefits’ leaflet.
Does the TPS provide ill-health retirement benefits?
If before you reach Normal Pension Age (NPA) you have become permanently unfit because of illness to serve as a teacher, ill-health benefits may be paid. For further information see the ‘Ill-health retirement benefits’ leaflet.
Can I find out what my benefits will be on various retirement dates?
The TPS calculates retirement benefits using members’ average salary and service. If you are still in pensionable service it is unable to provide estimates of benefits that may become payable at a future date. You may however, use a calculator on the TP website to make your own projections. If you are in service, the statement will normally automatically provide both a current estimate and a projection to NPA. For further information about average salary, see the Average salary fact sheet.
When do I apply for retirement benefits?
You should apply using the relevant form about four months before the date you wish to draw your pension. Which form you should use depends on your circumstances when you retire. For further information, see the ‘Retirement – arrangements and planning’ leaflet. Remember – it is your responsibility to make this application.