Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • foofi22
    • By foofi22 15th Oct 19, 10:30 AM
    • 2,045Posts
    • 1,334Thanks
    foofi22
    Teacher pension scheme options
    • #1
    • 15th Oct 19, 10:30 AM
    Teacher pension scheme options 15th Oct 19 at 10:30 AM
    Hi


    My wife (standard rate tax payer) is a member of (and currently pays into) the teacher pension scheme (TPS)

    She'd like to contribute extra towards retirement (to hopefully enable an earlier retirement) but is unsure what option is "best"

    The options within TPS are far as we know are:
    - additional pension.
    - faster accrual
    - reduce NPA to 65

    Or outside of the TPS:
    - contribute to a S&S LISA
    - contribute to a personal pension

    I generally understand the differences between LISA and personal pension options. Although I don't particularly know which of these two is better in our case. I like that LISA is tax free but contributions stop at 50 and has a slightly higher access age.

    We have no idea about the TPS options, which is the crux of this post.

    We know the TPS scheme is a "good deal " but are any of the three options a good deal?

    As an example, the online calculator for additional pension says that it would cost £1449 a year for 20 years to get £2000 extra pension which to me at least doesn't seem overly generous.

    Is one TPS option better than the others? For example is it "better" to (a) pay to reduce NPA to 65 or (b) buy faster accrual and retire at 65 but take the actuarial reduction?

    I realise this might be a bit open ended but just looking for some general guidance and thought on what other people might be doing

    Thanks
Page 4
    • tigerspill
    • By tigerspill 26th Nov 19, 2:39 PM
    • 425 Posts
    • 226 Thanks
    tigerspill
    cobson and tigerspill -

    Here is the NITPS legislation -

    http://www.legislation.gov.uk/nisr/2014/310/pdfs/nisr_20140310_en.pdf

    UPDATED - Transition members -
    Schedule 3, Part 7, Chapter 2, para 29-
    "A transition member (P) who has not reached normal pension age under this scheme may
    apply under regulation 162 for payment of age retirement benefits in respect of Pís pensionable
    service under the existing scheme without applying for payment of Pís retirement benefits in
    respect of pensionable service under this scheme. "

    To me this suggests that Transition members can take both schemes separately.
    Originally posted by GAry
    Thank you for the link - I will take a read.

    A tangental question - there seems to be much more info on the main GB TPS. Is the NITPS identical to the one in GB?
    • GAry
    • By GAry 26th Nov 19, 2:53 PM
    • 24 Posts
    • 4 Thanks
    GAry
    tigerspill

    I don't know if they are identical.

    I would be surprised if they are not, it would be hard to justify making them (significantly) different.

    cobson posted this:
    https://www.teacherspensions.co.uk/-/media/documents/member/factsheets/miscellaneous/understanding-scheme-changes/understanding-which-member-type-you-are-factsheet.ashx

    I have sent this to NITPS in Londonderry. We are awaiting a reply - they might say that this is the GB scheme and different ?? I'll keep you updated.
    • tigerspill
    • By tigerspill 27th Nov 19, 3:40 PM
    • 425 Posts
    • 226 Thanks
    tigerspill
    tigerspill

    I don't know if they are identical.

    I would be surprised if they are not, it would be hard to justify making them (significantly) different.

    cobson posted this:
    https://www.teacherspensions.co.uk/-/media/documents/member/factsheets/miscellaneous/understanding-scheme-changes/understanding-which-member-type-you-are-factsheet.ashx

    I have sent this to NITPS in Londonderry. We are awaiting a reply - they might say that this is the GB scheme and different ?? I'll keep you updated.
    Originally posted by GAry
    Thank you.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,656Posts Today

9,291Users online

Martin's Twitter