Teacher's Pension Scheme Experts

mark55man

Hi

My OH was a teacher with 8 years service up to 1996. Current Annual pension estimate around 2-3Kp.a.

She is thinking of returning to teaching (part time) in the next year or two,

• will her previous service impact the future pension (eg additional years, average salary etc)
• and/or will any future service would help previous pension (eg by adding years, average salary)
• or are the two pensions are independent from each other - as if she had been working for different companies

Also she has a £1000 with an independent private provider - could she transfer that in to the TPS scheme (ie to buy whatever fraction of a year £1000 would get her

I hope someone here can help - the amounts here are quite small, so want to get as much information/clarity as possible before gong to an IFA

jem16

mark88man wrote: »

will her previous service impact the future pension (eg additional years, average salary etc)

No. As she has a break of more than 5 years she will join the TPS under the new scheme and have 2 separate pension entitlements. One will have a retirement age of 60 and the other 65.

However service will be added together. It's not entirely clear how they calculate the pensions though so I would phone and ask.

snowcat53

I'd suggest you start with the tps website http://www.teacherspensions.net/
and do some reading .

One clear fact is that as the scheme has changed since 1996 and with more than a 5 yr break they will have to rejoin in the new scheme with retirement age of 65 and 1/60 accrual rate (but no lump sum). No idea how the previous service will count. Best phone them and ask.

PS looks like while i was typing jem has been able to answer!

mark55man

Thanks Jem (again) and snowcat.

I did read the TPS website, but understandably its assumes people are teachers or have always been teachers or are about to become retired teachers. I could find no information around breaks in service, and very little about the changes since 1996

I will write to ask - their opening hours and the jobs OH and I currently have make it a bit difficult

mark55man

http://www.teacherspensions.net/faqs/public-faqs/past-or-deferred-members/if-i-have-break-of-5-years-or-more-between-employments-does-that-mean-i-have-mixed-service-pension.aspx

I found this which seems to confirm your statements - but it is very brief

Just reading through this FAQ

http://www.teacherspensions.net/public/faqs/past-or-deferred-members-faqs.aspx

+ this seems relevant

"What happens to my service if I leave pensionable teaching employment?

Your service will remain to your credit and will be added to service undertaken in the future. If you take up other employment outside teaching it may be possible to transfer that credit to your new pension provider.
Further information can be found in the leaving teaching section of our active member guide."

jem16

mark88man wrote: »

Thanks Jem (again) and snowcat.

I did read the TPS website, but understandably its assumes people are teachers or have always been teachers or are about to become retired teachers. I could find no information around breaks in service, and very little about the changes since 1996

The main difference is that after 1st April 2007, it changed from an 1/80ths scheme with automatic lump sum to a 1/60ths scheme with no automtaic lump sum. If you commuted part of the pension to give a lump sum it worked out the same as the original scheme.

Biggest difference was the retirement age changed from 60 to 65.

Of course future changes from 2015 are likely to see a career average scheme brought in with retiral agae linked to state pension age so you OH will definitely have a "mixed bag" of pension entitlement.

mark88man wrote: »

http://www.teacherspensions.net/faqs/public-faqs/past-or-deferred-members/if-i-have-break-of-5-years-or-more-between-employments-does-that-mean-i-have-mixed-service-pension.aspx

I found this which seems to confirm your statements - but it is very brief

Just reading through this FAQ

http://www.teacherspensions.net/public/faqs/past-or-deferred-members-faqs.aspx

That's the bit I was referring to.

I left teaching in February 1984 and returned in November 1989. Fortunately I had left my pension where it was and it has simply resumed from there. The 6/7 years I had before February 1984 are counted in with my service after 1989 and will all be calculated on my final salary ( or best 3 years in the last 10 as it's likely to be higher for me) in 4 years time. For me though the retiral age is 60 for all of it so my break didn't matter apart from losing some years.

I suspect something similar will happen but with some service calculated with an age 60 retiral and some with an age 65 retiral - and to complicate matters more, with some service being calculated with whatever your OH's state pension age will be. However, as seems likely but has still to be confirmed, you will only be able to choose one retiral date out of that lot.

"What happens to my service if I leave pensionable teaching employment?

Your service will remain to your credit and will be added to service undertaken in the future. If you take up other employment outside teaching it may be possible to transfer that credit to your new pension provider.
Further information can be found in the leaving teaching section of our active member guide."

That bit (in bold) doesn't really apply to your OH as she did leave her pension with the TPS and became a deferred member.

mark55man

Thanks again. It is beginning to make sense to me.

Pleasingly her decision to restart teaching (made for entirely non pension reasons) and the fact we keft her pension with the TPS through avoidance through of a decision, all seem to be close what might be seen as good advice