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Advice on opting out of the TP scheme to preserve best 3 out of last 10 years

Discussion in 'Retirement' started by m_mcdermott1, Sep 10, 2017.

  1. m_mcdermott1

    m_mcdermott1 New commenter

    Hi,
    I wonder if any of you nice, knowledgeable people can help?
    I want to come out of the TP scheme in order to preserve my best 3 years of the last ten (which if I don't do now, I will lose out a lot in terms of the adjustments to the final salary that used to be a lot more lucrative - lots of previous threads on this I know - thanks). My question is, that the opt out form says something about my pension being adjusted for 'abatement'. What does this mean? Also, it says I would have to complete a 'certificate of re-employment'?
    I am 57 and went to 0.4 last year and I basically want to continue on my 0.4 for perhaps one more year, maybe a bit longer, but come out of the TP scheme and let my pension mature until claiming it later, perhaps next year, or the year after.
    Sorry to ramble, and hope all this makes sense - I guess I just want to know if it's ok to come out of the TP scheme and continue to work without it detrimentally affecting my pension ( beyond the fact, obviously no more years of service will get paid in to it). Will it just 'sit there' waiting for me to claim it one day in the future? When they finally look at my best years (3 out of 10) to eventually calculate my pension I assume it will be the best from the last 10 I have paid in/been a member of the TP scheme, rather than the years in teaching service (which as explained will carry on for one, perhaps two more years yet). Also, because of this, shouldn't they be able to do the calculation for me now (even though I am still teaching/ not claiming my pension, so I know what I will get when I do?). Anyone else in this position or done this?

    Thanks a bunch
     
  2. phatsals

    phatsals Occasional commenter

    You an opt out of the pension scheme whenever you like and preserve your benefits, they would then accrue with CPI. You would only fill in the certificate if you were to continue working after NPA, however if you take early retirement ARB (a day) you can earn what you like and would not have to fill in a form or notify TP.

    You could take early retirement and rejoin the new Career Average scheme to earn further pension or an annuity. For this you would have to be flagged with TP as having left teaching and then rejoin. I am not sure what calculation you are wanting from TP, you can make your own calculations based on your Average Salary, the calculators are very useful on the website. You only get the full calculation once you apply to take your pension.

    Ask TP for your last 10 years salaries uprated for inflation, ask TP for advice where you need it and take your time. You must do your own research very carefully as it varies for all of us.
     
  3. m_mcdermott1

    m_mcdermott1 New commenter

    Thanks for this. Trying to get through to TP at present is not easy though - guess it's the time of year. They normally respond to messages quite quickly on the system, but I've been waiting over a month for a reply now!

    Any idea what the reference to 'abatement' is?
     
  4. rooney1

    rooney1 Occasional commenter

    I looked into opting out last September - and carrying on working for 0.5. When I worked out the difference it would make - on my salary it was better to stay in the scheme and add more days on. Teachers pensions sent me the figures for the previous 10 years and with those and the online calculators I was able to work out fairly accurately the figures. Make sure your service record is accurate and complete. I took ARB a month before my 60th birthday and was pleased to see the what I had worked out was slightly better than I had worked out. Do your figures really carefully as we are all different.
     
  5. PeterQuint

    PeterQuint Established commenter

    Regarding take by a one day retirement - you need to ask yourself how come you trust your school/academy/trust.

    If you've worked somewhere for less than two years (which would effectively be the case hete) they can sack you on the spot for wearing a loud shirt, and you'd have no legal recourse.

    If you think they'd like to get rid of you (older, more expensive member of staff), then beware.

    If not, no worries.
     
  6. emerald52

    emerald52 Star commenter

    Your pension doesn't mature by leaving it as no interest accrues. There are threads on here that explain the difference in pension from leaving dates. Our pensions have a salary of reference, best 3 in 10 years, which is then adjusted to reflect inflation. That is why the timing matters as inflation has been low recently. TPS website is excellent and try emailing them.
     
  7. m_mcdermott1

    m_mcdermott1 New commenter

    Thanks Emerald
    By 'mature' I meant it would increase if I left it until I was aged 58, or another year older 59 say. However, the downside I know is that in the year(s) it is left unclaimed I would be missing out on receiving the income from the pension. So, it might increase by say ( just for example) £1000 per year, but, I could have been claiming say (just for example) £10,000 per year from the actual pension of claimed. So one has to weigh all that up
     
    emerald52 likes this.
  8. emerald52

    emerald52 Star commenter

    The pension only increases if you work more and add in days. You can take it, have a day off contract, start a new contract and a new pension. Then you don't suffer the best in 3 amount reducing.
     
  9. m_mcdermott1

    m_mcdermott1 New commenter

    Surely the 'best 3 years in the last 10' is the best three years whilst still in, and paying in to the TP scheme? If someone comes out of the TP scheme, but continues in service, surely these years whilst still in service do not feature in assessing when the best 3 years are? Just the best 3 when in the TP scheme? I would really like this clarified / confirmed if someone could for me. It obviously has big implications. Much appreciated.
     
  10. phatsals

    phatsals Occasional commenter

    You are quite correct, if you 'opt out' of the scheme you remain as a deferred member but no longer increase service and don't get the benefits of an 'active member'. If you take ARB and rejoin the scheme under 'career average' you can then contribute again to that one.
     
    emerald52 likes this.
  11. binaryhex

    binaryhex Established commenter

    It's the best three years in the last *working* ten years. Any years you are out of teaching completely don't count. If you are in the old scheme and are out of the pension for five years and then go back into teaching, you will rejoin under the career average scheme rather than the final salary / best three in ten scheme.
     
  12. m_mcdermott1

    m_mcdermott1 New commenter

    Yes, but if you are out of the scheme, but remain in teaching, surely the years in (current) teaching, whilst no longer paying in to the scheme count in the best 3 of 10 calculation.
     
  13. FrankWolley

    FrankWolley Star commenter


    If you take your pension now, as you are old enough to do, you will benefit from the 'best 3 out of the last 10 years' AND get a few more years pension (but lose a % as it is taken on ARB). You can also then earn as much as you wish without affecting your pension, with no cap. You just have to have a day's break in service (so need to sort this with your HT).
     
    emerald52 likes this.
  14. Sundaytrekker

    Sundaytrekker Star commenter

    Taking a break is not as simple as that, Frank. There is no right to a day's break. You have to resign your contract and the school has to have open competition to recruit to the vacancy. It used to sometimes be done as you suggest but those are the rules. And it's not a case of the head being harsh if they don't agree. That's how it is for correct administration.
     
    sophrysyne likes this.
  15. FrankWolley

    FrankWolley Star commenter


    As I said - you need to sort this out with your Head.
     
    emerald52 likes this.
  16. emerald52

    emerald52 Star commenter

    Still maybe worth taking ARB as Frank suggests to preserve the best 3 in 10. Get another teaching job and start pension again if head refuses.
     
    Sundaytrekker likes this.
  17. m_mcdermott1

    m_mcdermott1 New commenter

    Thanks all for this little flurry of responses, but please do forgive me if it is just me being a bit dumb here - I'm still not entirely clear, in that if I come out of the scheme, but remain teaching, in the same post, same place, without a break in service, will the continued years in service (even though no longer in the TP scheme) count when the best 3 in 10 calculation is done? If so, it would defeat my objective of coming out of the scheme as I would be doing it to protect my best period and by still having the non contribution years included (those whilst still teaching after coming out of the scheme) would push my best 3 year period off the edge. I'm still awaiting a response from TP on this.

    I'm sure a colleague has done this. He did it as a few years back he had a post with a lot more responsibility (and pay) than he has had for a while now, so came out of the scheme to protect his best 3 years. Any advice much appreciated.
     
  18. FrankWolley

    FrankWolley Star commenter


    Given that making the wrong decision could cost you, I'd only do this if you are 100% sure, which means getting it in writing from the TPS, that this applies. I WOULDN'T follow advice from posters here.

    Personally I'd consider taking ARB now, and continue with your current part-time post after a day's break of service (if your HT agrees first), and enjoy the money you will get from your pension.
     
    emerald52 likes this.
  19. phatsals

    phatsals Occasional commenter

    As has been said a number of times, yes you can opt out and yes your benefits will remain as is until you take your pension, be it ARB or NPA. When you opt out your benefits remain as they are, it signals end of your 10 years. You don't have to resign to opt out and you can always opt back in again.

    FWIW I did this last year. I have now finally taken ARB and my service calculation ended on the date I opted out.
     
  20. m_mcdermott1

    m_mcdermott1 New commenter

    Thanks Phatsals
    Very clear and reassuring, much appreciated
     

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