Teachers Pension - lapsed teacher

martindow

I taught for about 25years until I escaped a few years ago. I am now approaching 60. Is there any advantage in doing a days supply just before I reach retirement age? It has been suggested that the pension would then be calculated on the basis of the annual salary in force now rather than on my salary in 1998 when I last taught full time. Is this correct?

Debt_Free_Chick

I think it is ... but you would need to check. I recall that if you rejoin the Teachers' Pension Scheme, then they "unlock" your deferred pension and release the reckonable years you had before. These are then based on your current reckonable salary.

However .... and this really is worth considering ... you may find that the current value of your deferred pension is actually worth more. Firstly, that part that relates to your Guaranteed Minimum Pension (GMP) has increased, probably by a fixed rate of around 6% and the rest has kept pace with inflation.

I would ask for a current statement - ask for the current value of your deferred pension, not the amount you were awarded in 1998. You also need the period of reckonable service to which it relates.

Take the reckonable service, divide by 80 and then multiply it by the full time salary you would get if you went back into teaching. Compare this with the current deferred pension - that pretty much tells you all you need to know

It's often the case that when something seems too good to be true, it probably is

The full time equivalent salary for the teaching job you would be doing now, would have to had kept pace with inflation plus some more, in order for you to benefit.

Andy_L

Probably not:

The salary used to calculate your retirement benefits may be restricted if your salary is increased more than 10% plus the standard increase in any financial year during your last 3 years' pensionable employment before retirement and your employer is not prepared to meet the cost of the difference in benefits.

http://www.teacherspensions.co.uk/Guide/guide10.htm

Prudent

My understanding is that you will need to return for three years to benefit from a pension based on the current rate of pay. I have known other teachers who have done the same. They have come back when retiring from other employment at 60 and done three years supply. I think they also wanted to do supply work to supplement their income. The pension authority are always very helpful when you phone about anything.