Teachers Pension opt in pre 2007

moneysavermanchester

Can anyone clarify the rules re. opting into TPS pre 2007?

I am employed very part-time (2 hours a week) in an independent school, and have only very recently got them to start paying into my TPS.



When I started employment in 2005 they originally said that my higher rate of pay compensated for no benefits such as pension, sick pay etc, and said I was not entitled to join the scheme.



I contacted the TPS recently, who said that they should have been contributing to the scheme since I started employment and would need to make the full contributions.


I know that before 2007 you had to opt in if you were part-time, but what is the legal position on whether or not schools have to let you opt in if you want to, or to inform you that you are entitled to?
Interestingly, on my payslips it says 'hourly supply' although I am not a supply teacher, and work for the school, not through any agency. What is the significance of this please?


Also, if I have to also make my share of the contributions backdated, how does that work with tax as I have already been taxed on that income, whereas if I had paid it at the time it would have reduced my taxable income.

Many thanks if anyone can enlighten me!

phil80

I am on strike today

jem16

moneysavermanchester wrote: »

I contacted the TPS recently, who said that they should have been contributing to the scheme since I started employment and would need to make the full contributions.

From what I can see, if you work in an independent school it needs to have been one that has been accepted into the TPS. I take it you are saying that they are?

I know that before 2007 you had to opt in if you were part-time, but what is the legal position on whether or not schools have to let you opt in if you want to, or to inform you that you are entitled to?

Not sure - perhaps see the guide ?
http://www.teacherspensions.co.uk/resources/pdf/User%20Guide/TPS%20-%20Member%20Guide%20(February%202011)%20(web).pdf

Interestingly, on my payslips it says 'hourly supply' although I am not a supply teacher, and work for the school, not through any agency. What is the significance of this please?

I expect it's just because you are not a permanent teacher.

Also, if I have to also make my share of the contributions backdated, how does that work with tax as I have already been taxed on that income, whereas if I had paid it at the time it would have reduced my taxable income.

Many thanks if anyone can enlighten me!

Any lump sum paid would still attract tax relief but may depend on total contribution and total income as you only get tax relief on 100% of your earnings.

moneysavermanchester

Thanks,
They have definitely been accepted into TPS!

So if they should have told me about TPS or enabled me to opt in in 2005, can I get them to backdate my contributions to 2005?

The question about tax was that I have received a salary between 2005-2011 and paid income tax on the whole lot each month. Now I will need to pay some of it back for my backdated pension contributions, but I have already paid tax on the whole lot, instead of the 93.6% that would be remaining taxable had I contributed. Will I be able to claim the tax back on the backdated contributions that I pay back to my school?

jem16

moneysavermanchester wrote: »

Thanks,
They have definitely been accepted into TPS!

So if they should have told me about TPS or enabled me to opt in in 2005, can I get them to backdate my contributions to 2005?

I would certainly be asking them to.

Their argument for higher pay ect doesn't seem to fit as supply teachers are usually paid a higher rate as they are not paid for holidays. I can't see this as a reason not to allow you to joing the TPS.

The question about tax was that I have received a salary between 2005-2011 and paid income tax on the whole lot each month. Now I will need to pay some of it back for my backdated pension contributions, but I have already paid tax on the whole lot, instead of the 93.6% that would be remaining taxable had I contributed. Will I be able to claim the tax back on the backdated contributions that I pay back to my school?

I realsie you are asking this. However I am not sure how HMRC would view this as normally tax relief is only available at the time of the contribution.

However if your total backdated contribution is less than your annual salary from them you should be OK I think. However this might be a question you need to ask of HMRC.