Employers' Guide

Section 2 - Membership of the TPS

1. Scheme Members

It is for the employer, not TP, to decide whether a particular post is appropriate to the scheme though there are some posts that are not teaching posts which are within the scheme. Where a post is defined as eligible for membership of the scheme the appointee is automatically a scheme member, regardless of whether or not they work on a full or part-time basis, unless they have previously opted out.

Appendix 4 of this guide, which reproduces Schedule 2 to the Teachers' Pensions Regulations 2010, lists the types of full and part-time employment which may be treated as pensionable on election.

There are three types of membership, depending upon when the member joined the scheme. An explanation of this is given below.

Existing members (Normal Pension age 60)

  • Teachers who are current scheme members on 31 December 2006.
  • Teachers who have been out of pensionable service for more than five years, but who returned to teaching by 31 December 2007 are existing members irrespective of the length of break in service.
  • Members who have left service and return at a later date remain as existing members, with a normal pension age of 60 in respect of their future service, if they return not more than 5 years later and they accrue a minimum period of 30 days reckonable service or 60 days of pensionable employment.
  • If a teacher has transferred their benefits out of the TPS and then returns to teaching they will be treated as a new entrant regardless of whether or not they transfer their service back into the TPS.
  • Where a teacher has service in the Scottish or Northern Ireland teacher pension schemes prior to 1 January 2007 which is transferred into the TPS they may be classed as an existing member.

New entrants (Normal Pension age 65)

  • Teachers who enter the scheme for the first time on or after 1 January 2007.

Mixed-service members (Normal Pension Age 60 and 65)

  • Teachers who re-enter pensionable service after 31 December 2007, following a break in service of more than five years, will be subject to the provisions that apply to new entrants in respect of their future service i.e. with a normal pension age 65, but will retain a normal pension age of 60 in respect of benefits attributable to their previous service.

LA Organisers

Where employment as an organiser commenced before 1 January 1977 and the organiser made an election to remain in the TPS the person may continue to contribute to the TPS provided there is no break in service. 

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2. Full-time and Part-time Employment

Full-time

For the purposes of the Teachers' Pensions Regulations, employment is full-time if the contract requires the employee to work for the whole of the working week. This includes employment lasting for the whole of the working week even if it is done on a relief or supply basis.

Employment in categories listed in Part I of Schedule 2, Appendix 4, is pensionable automatically unless the teacher opts-out or has previously opted-out (see below).

Employment in Independent Schools, which are accepted into the TPS (Accepted Schools), is pensionable automatically unless the teacher opts-out or has previously opted-out (see below).

Employment in categories listed in Part II of Schedule 2, Appendix 4, is pensionable on election. An election should be made on the opting in form.

Employment in categories listed in Part III of Schedule 2, Appendix 4, is pensionable on election but only with the consent of the employer. An election should be made on the opting in form.

A teacher may choose not to contribute to the TPS but to make alternative arrangements for pension cover, either by opting-out and contributing to another registered pension scheme or by participating fully in the State Second Pension (S2P). In such cases the teachers must complete an on-line opt out election using the secure member area of the website My Pension Online.

You must always ask a new teacher whether or not they have already opted out of the TPS.  If the teacher confirms that they have opted out of the TPS you should ask to see a copy of the letter confirming that their election to opt out has been accepted.

Part-time

For the purposes of the Teachers' Pensions Regulations, employment is part-time if the contract requires the employee to work for less than the whole of the working week.

Part-time employment is automatically pensionable and contributions must be deducted unless the teacher has elected to opt out of the scheme. The exception to this is where a scheme member is employed part-time at the same time as being employed on a full-time contract which is also subject to the TPS. In these circumstances the part-time employment is not pensionable employment.

Where an existing part-time teacher starts a new contract on or after 1 January 2007, or there is a material change in an existing contract, they will automatically become a scheme member. Any other teaching employment currently being undertaken and any future employment will also be pensionable from the start of the contract. Any other employers must be notified immediately of the need to deduct Scheme contributions. The definition of a material change in contract is for you to determine. A part-time teacher who was in employment prior to 1 January 2007 may have previously completed an election for their service to be treated as pensionable.

Where a teacher does not change contract and has not previously elected to join the scheme, they will not automatically become a scheme member, but they can still join by making an election now or at any time in the future.

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3. Employment that is not pensionable

A person is not in pensionable employment:

  • if the person has opted out of the TPS;
  • unless they are paid salary in full or, on sick leave or, on maternity or paternity leave, parental or adoption leave and entitled to be paid not less than half pay or entitled to statutory adoption, maternity or paternity pay.
  • if the person is subject to the Local Government Pension Scheme (LGPS);
  • if the person has been in continuous employment with an LA (i.e. with breaks of less than twelve months) and in service which was formerly treated as pensionable in the LGPS unless the person has elected to join the TPS within 3 months of the start of a new contract. In practice people in this category will have continuously been employed in the same post(s) since a date before 1 January 1977;
  • if under 18 years of age or 75 years or over.
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4. Members Opting out of the TPS

A teacher who wishes to opt out of the TPS may, at any time, elect to do so. An opting out election must be made by the teacher using My Pension Online within the secure member area of the website. An election to opt out of the TPS takes effect as follows:

Election made Effective date

Before starting employment which, but for the election, would be pensionable employment

The day before entering such employment

Within three months after the start of pensionable employment

The first day of pensionable employment

More than three months after the start of pensionable employment

The first day of the month after the election is signed

 

Note: A different effective date must not be applied unless approved by TP.

Pension contributions should cease from the effective date. TP will notify acceptance to the teacher and advise him to ensure the employer is aware of the election.

In the absence of an opting-out election employers must collect pension contributions in the normal way. Effective dates for opt-out elections cannot be retrospective, so any failure to deduct contributions will generate an interest charge against the employer.

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5. Members Rejoining the TPS after previously opting out

A teacher who has previously opted out of the TPS may elect to rejoin. Pension contributions should be deducted from the effective date. A letter will be sent to the teacher to confirm acceptance and asking them to ensure the employer is aware of the election. You may wish to take a copy of the member’s election before sending it to TP. In the following table, 'excluded employment' is employment which would, but for the election to opt out, have been pensionable employment.

An election to rejoin the TPS takes effect as follows:

Election made Effective date

Whilst not in, but in expectation of entering, excluded employment

The day before entering excluded employment

Within three months after the start of any period of excluded employment

The first day of excluded employment

More than three months after the start of any period of excluded employment

The first day of the month following that in which the MEMELECT form was signed by the teacher

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6. Retired Teachers and Re-employment

The Teachers' Pensions Regulations do not prevent a retired teacher from becoming re-employed. You must notify TP of the appointment of a pensioner immediately by completing a TR6 on STU. You should ensure that the employee notifies TP using the Certificate of Re-employment, form so that TP can assess the impact the employment will have on pension benefits. A Certificate of Re-employment must also be completed at the start of each financial year.

You should be aware that where re-employment starts on or after 1 January 2007 service is automatically pensionable and contributions must be deducted. Exceptions are if the member opts out of the scheme or is age over 75.

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7. Returning to Teaching after Ill Health Retirement

You should be aware that:

  • you must be satisfied of a teacher's medical fitness to teach;
  • you must advise TP immediately the pensioner returns to employment by completing a TR6 using STU;
  • if a pensioner who retired on ill-health grounds enters re-employment which comes within the scope of the Teachers' Pensions Regulations, they should be advised that their pension will be stopped with immediate effect;
  • only teachers who retired on ill-health grounds before 1 April 1997 may undertake employment on a limited part-time basis without their entitlement to the ill-health pension being affected. These pensions must also be stopped immediately if a teacher is re-employed more than 2.5 days a week. If there is evidence which suggests that the teacher's health has been restored the DfE's medical advisers may need to consider whether the pension should stop irrespective of whether the teacher is working less than 2.5 days a week.
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