If you have any new staff starting their teaching career this September, then there’s lots of information and deadlines you need to make them aware of. One of these is the Buy-Out election.

Members of the Scheme have the option to Buy-Out the actuarial reduction that’ll be made to their benefits if they decide to retire before reaching their Normal Pension Age. This can be up to a maximum of three years.

They only have one opportunity to ‘buy-out’ the reduction and this must be done within six months of them first entering career average. Contributions towards the Buy-Out option last throughout their career, unless they decide to revoke their election.

This is a long-term commitment and the rates they’ll be required to pay will change throughout their career.

Our Buy-Out factsheet (PDF, 73 KB) (This link opens in a new window) explains more about the process, which can be shared with your new staff.