Advice please: Teachers Pension

desrover

I have been teaching for 15 years and recently gave up additional responsibility. This has resulted in a substantial pay cut. The current pension scheme is is based on final salary.

The benefits of the current scheme are generous. However I might be better off quitting the scheme so that my pension is based on my higher salary. I only plan to stay in teaching for another two or three years. Does anyone know if this is correct?

hugheskevi

Looking at the scheme guide here, final salary is calculated as being the highest of:

• The pensionable salary you received in the last 365 days before retirement.
  
• The average of the best three consecutive years’ salaries (revalued to take account of inflation) during the 10 years prior to leaving service

If you have had a pay freeze or minimal increases over the last few years, the second of these is likely to be quite a bit higher than the first in which case leaving the scheme wouldn't be of benefit.

Sobraon

How old is the OP?

desrover

Thanks for the replies.

Im early 40s but looking for a career change in the next couple of years.

Yes it looks like I would be better staying in. Never thought about the inflation impact so dont think my average salary will be much different to my highest salary. Its a good scheme also at least until 2015.