Teachers Pension Fund and ill health retirement

Murmansk

A friend of mine used to be a teacher and has a fair-sized pension fund with the Teachers' fund in respect of both her own time as a teacher and as a result of getting divorced from someone who had a pension fund with them too, some of which she ended up with as a result of their divorce settlement.

She's now aged about 52 and looking at trying to get a pension paid early and not reduced, based on ill health. 

She keeps getting conflicting information when she rings the Company and I think she needs to see an independent expert who has experience of ill health retirement and specifically of course ill health retirement with the Teachers Pension Fund.

So does she just need an IFA who specialises in this field? Maybe it's that simple. I'd appreciate some pointers as to who to approach.

Thanks

JoeCrystal

There are no pension funds within the TPS. Unless she is referring to AVCs? I understand that the AVCs are administered by The Prudential. Having said that, perhaps she meant that she got an index-linked pension and maybe a lump sum due to her when she reach an age that she can access it.

I am not sure by the reference to "the Company"? If she is no longer a teacher, then she is no longer employed by the schools or the unis, thus, I would expect the ill-health request to be dealt with wholly by the TPS itself.

Here is the link regarding ill health with the TPS: https://www.teacherspensions.co.uk/members/working-life/life-events/ill-health.aspx

I understand, and after doing some quick googling, I assume she would want to make an 'out-of-service application." However, no enhancements would be available. This is quite understandable, considering she is no longer employed as a teacher.
 

Murmansk

Thanks for the link. Doesn't really help though

When I refer to "The Company" I'm referring to the Teachers Pension Scheme

JoeCrystal

Have you checked the guide at the bottom? It may be worth a read-through.

https://www.teacherspensions.co.uk/-/media/documents/member/factsheets/applying-for-retirement/ill-health-feb-2018.ashx?rev=4038421f5b634a48a77525759174cd2f&hash=E6709FAB032BE1D1F2E517959B95A78B

They also mention and I quotes:

"If you’re no longer employed as a teacher, lecturer or in an employment covered by the regulations of the Teachers’ Pension Scheme and need assistance in applying for Ill-health Retirement benefits, we recommend that you seek assistance from individuals or organisations that can act on your behalf, such as a teaching union or the citizen’s advice bureau. Should you require general information or assistance about ill-health benefits, please call Teachers’ Pensions on 0345 6066166."

She may ask her teachers' unions if she retains associate membership with them or the CBA.

Murmansk

JoeCrystal said:

She may ask her teachers' unions if she retains associate membership with them or the CBA.

Thanks for that, I'm afraid she's no longer connected with teaching or a teaching union

Marcon

Murmansk said:

A friend of mine used to be a teacher and has a fair-sized pension fund with the Teachers' fund in respect of both her own time as a teacher and as a result of getting divorced from someone who had a pension fund with them too, some of which she ended up with as a result of their divorce settlement.

She's now aged about 52 and looking at trying to get a pension paid early and not reduced, based on ill health. 

She keeps getting conflicting information when she rings the Company and I think she needs to see an independent expert who has experience of ill health retirement and specifically of course ill health retirement with the Teachers Pension Fund.

So does she just need an IFA who specialises in this field? Maybe it's that simple. I'd appreciate some pointers as to who to approach.

Thanks

You say 'used to be a teacher'. How long ago did she leave teaching - under or over two years ago?

Murmansk

Over two years ago, more like 15 years

Marcon

Murmansk said:

Over two years ago, more like 15 years

In that case it's definitely an 'out of service' application, as mentioned earlier in this thread.

Murmansk said:

A friend of mine used to be a teacher and has a fair-sized pension fund with the Teachers' fund in respect of both her own time as a teacher and as a result of getting divorced from someone who had a pension fund with them too, some of which she ended up with as a result of their divorce settlement.

She's now aged about 52 and looking at trying to get a pension paid early and not reduced, based on ill health. 

She keeps getting conflicting information when she rings the Company and I think she needs to see an independent expert who has experience of ill health retirement and specifically of course ill health retirement with the Teachers Pension Fund.

So does she just need an IFA who specialises in this field? Maybe it's that simple. I'd appreciate some pointers as to who to approach.

Thanks

All your friend needs is accurate and complete information - having an IFA or other 'independent expert' isn't necessary and won't get her a better outcome, although it might do quite a lot to reduce her frustration in terms of getting clarity!

I've looked at the info on the TPS website and can only find references to the fact that as an out of service applicant she wouldn't get 'enhanced' benefits. The word 'enhanced' is frequently used to mean that extra 'notional' years of pensionable service are added (which definitely won't be the case), but isn't always crystal clear when it comes to 'no reduction for early payment'. Given that paying a pension early has a significant cost to the employer if it is paid unreduced, and as an ex-teacher she doesn't have a current employer to pick up that cost, my expectation is that it will be reduced for early payment, but she needs certainty.

I suggest she puts her question in writing to avoid misunderstandings - try WhatsApp: 'Please ensure you have the following details to hand: Full name, Date of Birth, National Insurance number and your Teachers' Pensions Reference number. WhatsApp messaging: 07545 932848 - Please note it may take up to two working to receive a response'

I suggest she sends the following message:

I was an active member of the TPS from [date] to [date]. I also have a pension credit arising from my divorce on [date]. I have not worked as a teacher since [date]. If I apply for ill health early retirement now at the age of 52, as an out of service applicant, and this is granted, please could you confirm if the pension I built up while an active member will be paid without reduction for early payment? Would the same answer be true of the pension awarded as part of my divorce settlement? I have looked at the information on your website and could not find any definitive statement covering these points. Thank you.

Murmansk

Thanks for your very comprehensive response, it's much appreciated and I'll pass it on to her.