Employers' Guide
Section 2 - Membership of the TPS
Contents
1. Scheme Members 2. Full-time and Part-time Employment 3. Employment that is not pensionable 4. Members Opting Out of the TPS 5. Members Rejoining the TPS after previously opting out 6. Retired Teachers and Re-employment 7. Returning to Teaching after Ill Health Retirement1. Scheme Members
It should be borne in mind that, although the scheme is primarily for teachers, there are some posts that are not teaching posts which are within the scheme. Principals and Vice Principals of FE Colleges, for instance, are traditionally members of the scheme. Similarly, academic posts at universities are included - it is for the employer, not TP, to decide whether a particular post is appropriate to the scheme. From 1 January 2007 where a post is defined as eligible for membership of the scheme the appointee will automatically become a scheme member regardless of whether or not they work on a full or part time basis.
From 1 January 2007 there will be two types of membership depending upon when the member joined the scheme. An explanation of this is given below.
Existing members
- 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 return to teaching by 31 December 2007 will do so under the existing scheme provisions (irrespective of the length of break in service).
- There will be a minimum period of 30 days reckonable or 60 days pensionable scheme membership that must be undertaken after a break in pensionable service to allow teachers who have a subsequent break in service to return at a later date and retain their right to a normal pension age of 60 in respect of their future service.
New entrant
- Teachers who enter the scheme with no pensionable service prior to I January 2007 to their credit.
- Teachers who re-enter pensionable service after 31 December 2007, following a break of service of more than five years, will be subject to the provisions that apply to new entrants (benefits already accrued would still be payable at age 60).
Appendix 4 of this guide, which reproduces Schedule 2 to the Teachers' Pensions Regulations 1997 (as amended), lists the types of full and part-time employment which may be treated as pensionable.
LA Organisers
Where employment as an organiser commenced before 1 January 1977 the person may continue to contribute to the TPS provided there is no break in service.
Where employment as an organiser commenced after 31 December 1976 the person is not entitled to membership of the TPS.
Back to the top2. 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.
A teacher may choose not to contribute to the TPS but to make alternative arrangements for pension cover, either by taking out a stakeholder or other personal pension plan or by participating fully in the State Second Pension (S2P). In such cases the teachers must complete an opting-out election and send it to TP.
You must always ask a new teacher whether or not they have already opted out of the TPS and request sight of their acceptance form.
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.
From 1 January 2007 new appointments or new contracts for part-time employment are automatically pensionable unless the teacher elects to opt out of the scheme and contributions should be deducted.
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 this circumstance the part-time employment is not pensionable employment. This arrangement was introduced as part of the scheme changes that became effective on 1 January 2007.
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. This status continues there is no change to their Scheme membership and contributions should continue to be deducted.
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 this circumstance any part-time employment on or after 1 January 2007 is no longer pensionable. This arrangement was introduced as part of the scheme changes that became effective on 1 January 2007.
Where an existing teacher starts a new contract on or after 1 January 2007 they will automatically become a scheme member. You must inform them of this and ask the teacher if they wish to opt out of the Scheme. If they confirm that they wish to become a scheme member it must be explained to them that any other employment currently being undertaken and any future employment will also be pensionable. All employment will be subject to the deduction of Scheme contributions. The definition of a change in contract is for you to determine.
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.
Back to the top3. Employment that is not pensionable
A person is not in pensionable employment:
- if the person has opted out of the TPS;
- unless paid salary in full or on sick leave and entitled to be paid not less than half pay or on maternity leave or paternity or adoption leave and entitled to be paid contractual remuneration or statutory maternity pay;
- if the person is subject to the Local Government Pension Scheme (LGPS);
- if the person has been in continuous employment with an LA (ie 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.
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 and submitted to TP. It may be possible for a teacher to submit an election to opt out of the scheme via My Pension Online (our secure 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. Employers may wish to take a copy of the member’s election before sending it to TP.
In the absence of an opting-out election employers must collect pension contributions in the normal way.
Back to the top5. 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 Form 261 was signed by the teacher |
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 in whatever capacity. You should also tell such employees to notify TP, using the Certificate of Re-employment, so that TP can assess the impact the employment will have on pension benefits. 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 75 or over.
- re-employment which commenced on or after 1 April 1997, up to March 2000, cannot be treated as pensionable. Employment which commenced before 1 April 1997 will continue to be treated as pensionable (in the absence of an opting-out election) until that contract terminates;
- further employment undertaken on or after 1 April 2000 would only be pensionable if the member made an election.
7. Returning to Teaching after Ill Health Retirement
You should be aware that:
- if a pensioner who retired on ill-health grounds enters re-employment which comes within the scope of the Teachers' Pensions Regulations the pension will be stopped;
- 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. From 1 April 2006 these pensions must stop automatically if a teacher is re employed more than 2.5 days a week. However you must be satisfied of a teacher's medical fitness to teach. If there is evidence which suggests that the person's health has been restored the DCSF'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.
Employer Training Seminars for 2008
Got a Question? Find the answer here
Online Opt Out Form Now available