Teachers' Pensions

Return to work

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Returning to work

You must inform us immediately if you take up any employment that is pensionable in the Teachers’ Pension Scheme (irrespective of whether you choose to opt-out of the Scheme for that employment) by completing a Certificate of Re-employment. If you don’t it may result in your pension being overpaid, if abatement applies, which you will be required to repay.

If you’re working as part of a phased retirement you don’t need to complete a Certificate of Re-employment, but if you’ve taken your final benefits after phased retirement you must tell us. Please note that if your employer submits details of service and salary to Teachers' Pensions via Monthly Data Collection (MDC) a Certificate of Re-employment is not required for that employment.

You’ll need to send us a Certificate of Re-employment for every tax year you’re working following your retirement. You must tell us if the hours you work or the salary you’re receiving changes in any way.

If you’re receiving Age or Premature final salary benefits, your pension may be temporarily

suspended, depending upon your earnings and irrespective of whether your new service is pensionable or not.

If you’re receiving career average benefits they will not be affected by any re-employment.

If you took final salary benefits and if you’re receiving Actuarially Adjusted Benefits, your pension will not be affected. If you return to work and subsequently take Age, Premature or Ill health retirement your benefits may be affected.

How do you decide if my pension should be suspended?

Your final salary pension will be affected if your pension and re-employment earnings exceed your salary of reference. Your salary of reference is the highest salary in the average salary period, as calculated at retirement.

Any career average benefits that you are receiving will not be affected.

The way we calculate your pension will depend on which arrangement(s) you have built up pension in. We calculate the value of your pension by using:

  • Any final salary pension (should you have pension in this arrangement)
  • Any career average pension (should you have built up pension in this arrangement)
  • Any mandatory and discretionary payments that your employer at retirement is paying.

What is the limit that I can earn in a tax year?

Your index-linked salary of reference minus your annual pension is the limit that you can earn in a tax year before your pension is affected. If your earnings in the tax year exceed that limit, your pension is suspended.

What do I need to do if I start work again?

If you go back to work, there are five things you must tell us:

  1. The name and address of your employer
  2. The date your employment started
  3. The duration of your employment (if you know it)
  4. The rate of salary
  5. The nature of the employment (indicating whether it’s full or part-time).

To make it easy you can complete the Certificate of re-employment to ensure we have all of this information. You can complete the certificate online .

Will I earn further pension if I return to work?

If your service is pensionable, you’ll get further retirement benefits on application. These will be based on your extra pensionable employment and the salary that you earn. This is known as Additional Service After Retirement (ASAR).

If you’re re-employed after taking retirement benefits other than phased retirement, you must have one year of ASAR to qualify for further benefits. Remember if you’re working part-time, the whole period counts towards your qualifying service including the days you don’t work. However, your benefits are based on the pensionable earnings you receive.

You don’t have to claim your benefits immediately you stop ASAR if you plan to do further work, as all your ASAR benefits will be added together when you finally decide to claim them. If you have less than one year’s service (365 days) and don’t intend to continue in the Teachers’ Pension Scheme, your contributions and interest will generate an annuity to add to your existing pension.

Unless you were in ASAR immediately before 1 April 2012 any service undertaken after 1 April 2015 will be in the career average arrangement. The standard retirement types, Age, Premature, Actuarially Adjusted, Phased and Ill health will apply to ASAR benefits.

Returning to work after ill health

If you’re receiving ill health benefits, it’s because you had been judged permanently medically unfit to teach. So if you return to teaching, your ill health pension must stop immediately.

If you wish to return to teaching, your employer must be satisfied that you’re fit to teach in the capacity required. You must notify us in writing immediately of any employment undertaken if you’re in receipt of ill health benefits. It’s your responsibility to notify us in writing straightaway of any employment undertaken when in receipt of ill health benefits.

If your pension is stopped because you return to work, you’ll only be awarded another ill health pension if you become ill again and satisfy us that you’re unfit to teach. You can retire on any other grounds at the appropriate age.

If you’re receiving an enhanced pension and you intend to return to employment outside teaching, you must provide a certificate from a registered medical practitioner. The medical practitioner must be satisfied that you still have the medical condition that caused your enhanced pension to be paid.

The nature of your proposed employment will also help us decide whether or not the enhanced pension can continue to be paid.

Last Updated: 22/05/2017 12:51

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