About the Teachers' Pension Scheme
There’s one thing almost all teachers have in common: their pension.
So if you’re a teacher, lecturer or someone in any other employment covered by The RegulationsThe Regulations are the Teachers’ Pension Regulations 2010 – Statutory Instrument 2010 No.990., this concerns you. If you’re a member who’s planning for your retirement and have a pension, this concerns you. Even if you’ve retired altogether from teaching and have been paid a pension, yes, you guessed it, this concerns you!
Why? Because pensions are a) incredibly important when it comes to anyone’s job let alone one as demanding as teaching; and b) because lots of teachers, wherever they are in their career, still don’t feel they understand enough about their pension. We want to change all that.
So whether you’re a new teacher, an active teacher, a teacher planning retirement or a retired teacher, you’ll find what you need in your part of this website. But before you jump to ‘your’ section, here are the first 5 things absolutely everyone should know about their pension.
Your Teachers’ Pension Scheme ‘Starter for 5’
- It’s administered by Teachers’ Pensions (TP) – that’s us – on behalf of the Department for Education (DfE).
- It’s a contributory scheme, so both you and your employer pay into your pension each month – with your employer paying the bigger share.
- It’s a pension based on your service and salary – so there will be no nasty surprises when you come to claim your pension.
- The Scheme provides a regular income and a lump sum when you retire – either an automatic lump sum if you joined the scheme anytime before 2007, or an optional one if you joined since 1st January 2007.
- If you’re a teacher or lecturer, part-time or full-time, then scheme membership is automatic (but not compulsory).
What else should you know about your pension?
You’ll pay reduced rate national insurance contributions because of it. Also, your pension is designed so its value is protected against rising prices. You can even buy extra pension credits to boost your benefits, or in some cases transfer pension credit over from another scheme provided you do it within a year of joining the scheme.
The Teachers' Pension Scheme is also contracted-out of the State Second Pension (S2P) as the benefits paid are better than the state would pay. And though you’re contracted out, you’ll still get the Basic State Pension on top of anything you get from the Teachers' Pension Scheme.
So your pension is designed to take care of you when you retire. That doesn’t just mean when you’re 60 or 65 either. If you have to stop working through ill-health you may get your pension early. And should the unthinkable happen and you die before you retire, your family may be paid your pension benefits.