Employers' Guide

Section 1 - Introduction

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1. About this Guide

This guide provides important information for employers of members and potential members of the TPS in England and Wales. It covers all sectors and types of establishments which come within the scope of the TPS.

References to teachers in this guide cover all academic staff, i.e. lecturers, teachers, instructors, heads of department, deputy heads, head teachers and principals who are eligible to be members of the Scheme.

As well as the information contained in this Guide there is also the Employers' Toolkit which was produced in late 2006 to coincide with the introduction of Scheme changes from 1 January 2007. The Toolkit provides employers with broad information about their responsibilities, sets out the changes to the Scheme and provides examples of the literature available to employers and Scheme members. In addition to hard copies available to every employer the Toolkit can be accessed on the TP website.

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2. Employers responsibilities

Teachers’ Pensions (TP) administers the Teachers’ Pension Scheme (TPS) on behalf of the Department for Children, Schools and Families (DCSF). However, it cannot be emphasised too much how important the employer’s role is in the scheme’s administration. Additionally, employers’ functions are subject to statutory requirements. This Guide is designed to inform employers of their responsibilities, to provide guidance about typical events and provide you with contacts within TP should you require further assistance.

If employers do not carry out their responsibilities in a timely and accurate manner, it can have a detrimental effect on their employees. It will not always be possible for TP to repair at a later date a situation that has had a detrimental effect on a member’s pension position through the employer failing to carry out their responsibilities at the correct time. Cases of member dissatisfaction can result in referrals to the Pensions Ombudsman.

Administering the Scheme

Employers’ responsibilities in the administration of the TPS are set out at the beginning of each of the following sections but broadly they are as follows:

  • Provide information to new appointees, both full and part-time. This means giving them the Guide to the Scheme, if they haven’t previously received one and informing them that, without exception, they are automatically members of the scheme unless they opt out. TP must be notified promptly of ALL new appointments through the submission of Form TR6.
  • Check if new starters have opted out of the scheme.
  • Check if new starters are paying additional scheme contributions.
  • Submit information about leavers as they occur and provide the leaver with a copy of the fact sheet Leaving Pensionable Employment.
  • Collect and submit the contributions due in a prompt and accurate manner by 7th of the month following their deduction, where the 7th is a weekend or bank holiday payment must be submitted to arrive before the weekend or holiday, (statutory interest is charged for late payment).
  • Complete and send to TP the paying-in slip that details the components of the contribution payment.
  • Complete the contribution “end of year certificate” by no later than 30 April each year.
  • Submit annual return of service and salary details by no later than 31st August each year.
  • Provide an audited TR17/17a certificate by no later than 30 September each year.
  • Pay short term death benefits to dependants of deceased members.
  • In addition to the Annual Return provide service and salary information promptly when requested by TP.
  • Complete and authorise application forms on behalf of members.
  • Consider with members suitable alternative employment and the provision of appropriate medical evidence in connection with potential requests for ill health retirement.
  • Inform TP when a retired member takes up employment, these employees will automatically be members of the scheme again unless they opt out.

Communicating the TPS to members

In addition to administering the scheme, employers have a crucial role to play in making members aware of the benefits of the TPS throughout their careers. A summary of the benefits in the TPS are:

The TPS is a defined benefit contributory pension scheme. It is one of the most important and valuable benefits available to teachers. The employer makes a substantial contribution towards the cost of the pension.

  • The TPS not only provides the member with a regular income after retirement, but also provides their family or other dependants with financial protection after the member dies.
  • All teachers and lecturers, both full time and part time, are automatically members of the scheme unless they elect to opt out.
  • If the member becomes too ill to work, they may receive their pension early.
  • The member can increase their pension credit by buying extra pension. They may also be able to transfer in pension credit from another scheme.
  • TP will pay a lump sum if the member dies before retirement and we may pay children’s and dependants’ pensions.
  • The member can choose to have part of their pension paid as a lump sum if they joined the scheme on or after 1 January 2007.
  • If a member joined the TPS before 1 January 2007 they will automatically receive a lump sum.
  • The pension is index-linked, to protect its value against the effects of inflation.

Employers have a crucial role to play in helping members understand their pension provision. This includes:

  • Ensuring members are kept informed of any changes to the scheme that may affect them.
  • Providing information to new appointees such as the Scheme Guide, relevant fact sheets and by encouraging members to access information on the TP website.
  • Ensuring new appointees are aware that previous pension provision may be transferred into the TPS within one year of taking up their appointment.
  • Educating members on options for planning how and when to retire, e.g. how new average salary calculation or phased retirement might support them winding down towards the end of their career.
  • Making members aware of options to increase their pension such as by buying AVCs or purchasing additional pension in the TPS.
  • Encouraging members to periodically review their pension position by for example, making them aware of the pension modellers on the TP website.
  • Promoting the value and benefits of the scheme by for example, showing the value of employer contributions on payslips.
  • Ensuring members choosing to opt out of the TPS are aware of the benefits that they are giving up.
  • Ensuring members are aware of the need to register their unmarried partner with TP, if they want benefits to be paid to that partner after their death.
  • Making members aware of what happens to their pension when they are on leave of absence.
  • Informing leavers of their options by for example, providing a copy of the Leaving pensionable employment fact sheet.

Information on entitlement to benefits, and how these are calculated, is given in the scheme guide. Employers must ensure that new members are provided with this if they have not previously received one. A Members’ Guide Fact Sheet is available to give to current members. The guide is available on the website or copies can be obtained from TP. (Employers are not encouraged to hold large stocks of this because it is regularly updated). This guide is not, however, intended to be exhaustive, and any teachers who are concerned about their position under the TPS should be offered either the appropriate fact sheet or advised to access the website www.teacherspensions.co.uk for further information.

Statutory requirements

The administration of TPS is subject to statutory regulations and employers have a crucial role to play in adhering to these requirements. The Occupational Pension Schemes (Disclosure of Information) Regulations 1996 require TP to:

  • Pay pension benefits within 30 days of entitlement. The DCSF, as scheme managers, apply a much more stringent timescale. It is therefore imperative that employers ensure application forms are completed and forwarded to TP promptly, if possible as much as 4 months before the date of retirement;
  • Provide estimates of retirement benefits to teachers within 2 months of request. The DCSF, as scheme managers, apply a much more stringent timescale ie. within 10 working days of receipt of request. It is therefore essential for annual returns to be submitted in accordance with the timescales
  • TP also provide benefit statements to all active members on an annual basis following the completion of the annual return.

The Occupational Pension Schemes (Transfer Values) Regulations 1996 require TP to calculate a guaranteed transfer value within three months of request. The DCSF, as scheme managers, apply a much more stringent timescale of 20 working days (excluding waiting time). It is therefore essential that you provide up-to-date and accurate information promptly on request. Overriding legislation requires TP to provide leavers with less than two years service with a quotation of a transfer value and the amount of contributions and interest they would receive if they took a repayment. This must be done within three months of leaving. It is vitally important, therefore, for you to give the Leaving pensionable employment fact sheet to staff leaving your employment and submit leaver returns to TP promptly (Form TR8).

The Pensions Regulator supervises the pensions industry and ensures that pension schemes and employers meet the regulatory requirements. The Pensions Regulator has the power to impose fines on schemes and employers (and their individual managers) who do not do so.

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3. Communicating with TP

You can contact TP in the following ways:

Write to:
Sue Blewitt, Andy Myers or Shaun McCormack (Employer Group Managers)
Teachers’ Pensions
Mowden Hall
DARLINGTON
DL3 9EE

E-mail us at tpdata@capita.co.uk.

Call us on the Employer Helpline 0845 3003756 or if you require forms or fact sheets you can download them from the Forms and Leaflets section.

Fax us on 01325 745757
or access our website at www.teacherspensions.co.uk

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4. Record Keeping

Our computerised records are registered under the Data Protection Act. This means that TP will keep all the information TP hold in the strictest confidence.

TP will store securely, maintain and update the information on individual teachers which is necessary to calculate their entitlement under the Teachers’ Pensions Regulations. TP also collects certain information in respect of individual teachers who are not members of the TPS some of which is required for statistical purposes.

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5. Providing information

You will be provided with clear, concise and up-to-date information to help you in the administration of the scheme. TP will notify you of any changes to the administrative arrangements of the scheme through communications such as TP News.

If you contact us regarding a teacher, it will be helpful if you could provide the following information:

  • the teacher’s reference number (such as RP99/99999);
  • full name;
  • date of birth; and
  • National Insurance number.

This information will help us to identify the record and to deal with your enquiry.

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