Holiday pay doesn't count for Teachers' Pension?!

telfordspa

Hi. This is my first time posting. Thank you for any advice you may have.

I've been working at a college for 5+ years as a lecturer. The amount of hours I do has varied up and down over this time, but I've worked around an average of at least 1.5 days a week since I started. However, there's a problem...

Looking at my payslips, I've seen a bit of an anomaly. My employer has taken monthly pension contributions from me (so I've always just assumed everything is fine), but it appears that they haven't been taking anything from me from the HOLIDAY PAY that they pay me. Upon speaking to Teacher's Pensions it seems that nor have they been contributing anything for the HOLIDAY PAY that I get as part of my job. This means that when I retire I'm going to be getting a pension that is around 20% less than if my holiday pay was being treated as 'pensionable' by my employer.

Even though my hours go up and down, I'd have thought that as this is money earned in my job, it would or should be added to the teacher's pension scheme? It's not like it's a 'bonus' or anything.

Having spoken to the Teacher's Pension Scheme, they've said that full time teachers have their pension paid as part of their salary - but in my case it would depend upon what my contract says. Which, for the record, makes no reference to the issue of holiday pay being treated as pensionable. It only says:

"You are entitled to participate in the Teachers' Pension Scheme (TPS) subject to its terms and conditions from time to time in force. The TPS is contracted out of the State Earnings Related Pension Scheme. It follows that if you choose to participate in it a contracting out certificate under the Social Security Pensions Act 1975 will be in force in respect of your employment. Should you choose not to join the TPS you must participate in the State pension scheme or take out a personal pension."

For the record, I'm happy to 'backpay' any amounts to the Pension Scheme - I'm not expecting my employer to chuck money into the pension scheme out of thin air. I just think my holiday pay should count towards my pension - otherwise I'm just being set up to get ****ed when I retire?

Anybody have any advice?

Silvertabby

"You are entitled to participate in the Teachers' Pension Scheme (TPS) subject to its terms and conditions from time to time in force. The TPS is contracted out of the State Earnings Related Pension Scheme. It follows that if you choose to participate in it a contracting out certificate under the Social Security Pensions Act 1975 will be in force in respect of your employment. Should you choose not to join the TPS you must participate in the State pension scheme or take out a personal pension."

Well, that is well out of date! - contracting out of SERPS ended for TPS (and all other public sector pension schemes) in April 2016. Are you looking at the latest scheme leaflet?

That said, TPS are right in saying that the pensionable status of your holiday pay depends on your contract, not TPS rules. As your contract appears to make no mention of this, it's something you will have to take up with your employer rather than TPS.

For the record, I'm happy to 'backpay' any amounts to the Pension Scheme - I'm not expecting my employer to chuck money into the pension scheme out of thin air. I just think my holiday pay should count towards my pension - otherwise I'm just being set up to get ****ed when I retire?

Can't happen that way, I'm afraid. TPS is a DB scheme, based on your salary and not your contributions. If your employer agrees that your holiday pay should be pensionable then they will have to chuck more money into the pension scheme. Bearing in mind that their contributions could be as much as 3 x times the amount you pay.......