Teacher Pension - maximise best 3 years average?

Mamfach · 19 February 2018 at 8:43PM

Hi,
I’m a teacher coming up to retirement age. I was on an a very good salary between 8 and 10 years ago but in the last 7 years I have taken a demotion and am on a smaller salary.
My pension scheme calculates the average of my best 3 years salary in the last 10 as part of the lump sum award. I want to continue working past my official retirement age but want to maximise my lump sum.
Should I withdraw from the pension scheme?

Dazed_and_confused · 19 February 2018 at 11:31PM

On the figures provided it's difficult to give much of an opinion.

Fermion · 20 February 2018 at 3:21AM

For most that we know (my wife was a teacher in this situation) the best option is to take your pension and lump sum at retirement age and then sign up to the new teachers pension scheme. You will then be able to use this to get a supplemental pension at your state pension age.
However you need to be careful as TPS rules state that you can!!!8217;t earn more with you TPS pension and teachers salary than your pensionable reference salary - so if that was the situation then you are correct to think about not signing up to the new TPS post lump sum etc.

Mamfach · 20 February 2018 at 5:06PM

Thank you Fermion for your comments.

I shall look further into this.

stoozie1 · 21 February 2018 at 12:46AM

Pob lwc!

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Teacher Pension - maximise best 3 years average?

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