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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. Sundaytrekker

    Sundaytrekker Star commenter

    Advice from ATL on the subject of AAB:

    If you only have AABs, you are not subject to an earnings limit; however, be wary of taking an AAB very close to NRA and not having a proper break between
    retiring and starting re-employment. The Department for Education (DfE) can deem your retirement void if it is felt your retirement was not genuine and you have simply drawn your pension and continued working. This can result in having to repay pension paid. ATL’s advice is that you should resign your current post, apply for your pension and retire, have a gap of at least a day, and begin a brand new contract in the same or a new school or college. Opting out of the TPS in reemployment that is subject to the TPS does not get around this rule, as the school or college is still part of the TPS. Currently, any reemployment in Northern Ireland is not pensionable.

    Further food for thought....
  2. emerald52

    emerald52 Star commenter

    I did that. End of contract 2 days before 60. New contract after a day break and paid into new pension scheme. So got my best 3 in 10 and now have a small extra teaching pension on top.
    Sundaytrekker and FrankWolley like this.
  3. Sundaytrekker

    Sundaytrekker Star commenter

    Absolutely fine if its genuinely a different contract in a different role. I did it too. My concern is artificially stopping and starting the same role.
  4. artbinki

    artbinki New commenter

    On the same note , I am 49 and recently left my slt post. I have taken a 20k pay cut. In order to get by 20 years final salary 95-2015 at by best average I would need to leave pension scheme at 56 and then carry in working taking fsp at 60 and ca at 67. However , if I work to 60 this means losing 4 years of ca and also the guarantee of death in service if I’m suddenly ill. Was thinking of asking employer then the time comes if I could transfer to local gov scheme so I could pick up 4 years elsewhere , or get stakeholder pension - the school is currently local authority - who knows where we will be in 7 years ! Any advice much appreciated as I’d eat my own leg quicker than bs a Head again after the eat I was treated .
  5. binaryhex

    binaryhex Lead commenter

    I can’t make any sense of the above post.
    emerald52 likes this.
  6. Sundaytrekker

    Sundaytrekker Star commenter

    I think I can make out the main point. If you stop in time to preserve those benefits then I don’t see how you can transfer to a local government pension scheme if you are employed as a teacher. If the job is something else like an adviser that might be possible. Lots has been said about preserving the best years for pension calculations but with inflation changing at present you can’t be sure what the situation will be in another five or so years time.
  7. PeterQuint

    PeterQuint Lead commenter

    Is there a list of jobs in schools which include/exclude you from TPS?
  8. PeterQuint

    PeterQuint Lead commenter

    Sorry for being a bit thick, but am I missing something here?


    At this point I'm all worried. I thought a 'one day retirement' was fine.

    But then:

    Erm...that's what I thought all along.

    Panic over?

    Is this what some people have been doing? Just claiming their pension without even a 1 day retirement? If so, no problem. But I thought it was so well known that no one would try that on.
  9. Sundaytrekker

    Sundaytrekker Star commenter

    The relevant point was that the new contract can’t just be for the same role. It must be a different job.
    PeterQuint likes this.
  10. PeterQuint

    PeterQuint Lead commenter


    Any way round that?

    Different job title, same TLR, vague wording to the job description?

    I'm sure if I sat down and wrote my own job description ten nights in a row I'd get 10 different documents.
  11. Xericist

    Xericist New commenter

    I would also be wary of any advice that was not backed up by professional expertise. TPS is obviously a definitive source. But you might also check out union advice: they always used to have a pension specialist, and if not, accredited financial advisors such as Wesleyan Assurance reps have traditionally had excellent insights into the vagaries of pension scheme.
  12. jubilee

    jubilee Star commenter

    You really need to get UNion advice on this.
    My understanding is that it's your best 3 years in the 10 years to retirement, not the best three of your last 10 years in the TPS.

    You would almost certainly be advised to carry on paying into the old TPS scheme based on you p/t earnings.
    A friend of mine wanted to benefit from the lat 3 in 10 years as her highest pay grade was some years before retirement. She was working 0.8 and , with Union guidance, went down to 3 days per week and triggered a phased retirement and partial pension release that was based on her best pay grade. Her 3 days of pay and her pension gave her more pcm than her 4 days per week of working. She continued paying into the TPS and worked for one more year before getting the rest of her lump sum and the full pcm pension.
  13. phatsals

    phatsals Occasional commenter

    This is not correct, it is best 3 in last 10 years in TPS.
    emerald52 likes this.
  14. m_mcdermott1

    m_mcdermott1 New commenter

    Totally agree with Phatsals 100% on this. Your best 3 in 10 is in the last ten years you were a paying in member of the TP scheme, and NOT the ten most current ten years you've been teaching. Once your out of the scheme, by whatever means or route (e.g. opted out but not claiming pension yet and remained in teaching, or opted out and left teaching but not claiming pension yet etc) the ten year period is fixed/closed. Think about it, it would be nonsensical if it was not based on the years of contributions and nothing else. You don't get any pension if you don't pay in, and if you have once been a member and then come out of the scheme then any further years whilst still in teaching will not influence your pension (otherwise you would be wrongly credited with more years service than you have actually paid in, and I'm sure they would not allow that!).

    I'm about to opt out myself (to protect my own best 3 in 10 period) and did once query this myself and got clarification from TPS. I can report that It is as stated here. Best for folk to get their own personal confirmation on this though, as with any other pension mattter, but hope this posting helps/reassures.
  15. Steph2002

    Steph2002 New commenter

    God this is all SOOO confusing. I intend to go pt soon, but as I am 60 and have only 12 years service I just keep on paying in, my years of service will accumulate?
    The best of 3 means your full time equivalent salary does it not? Not what you are paid part time ???
    emerald52 likes this.
  16. sophrysyne

    sophrysyne New commenter

    I was looking at this yesterday, and TP have a calculator that tells you how much you can earn after you draw your pension (ARB in my case) before they put your pension payments on hold; as I understand it, I think you can earn up to your final year salary less your annual pension plus an inflation % in any one tax year, before they abate (stop) your pension. Payments resume when you fall below that figure.
  17. emerald52

    emerald52 Star commenter

    Yes service accumulates.Best of 3 is FT eaivalent. Your part time reduction comes from only accumulating part of a year. So as a 0.5 teacher it takes 2 years to accumulate one year in the pension scheme.
    Steph2002 likes this.
  18. emerald52

    emerald52 Star commenter

    If you take ARB before 60 you can earn as much as you like and not lose pension.
    Weald56 likes this.
  19. Weald56

    Weald56 Established commenter

    My understanding is that you only have to retire just before the due date (so don't lose much on ARB). But obviously check with TPS!
  20. m_mcdermott1

    m_mcdermott1 New commenter

    Can anyone clarify this please ...
    For the best 3 in ten period, do they go back exactly ten calendar years by the exact month you opt out, or is it done by financial years? So, for example if I opt out at the end of Nov 2007, does the ten year period considered go back to Nov 2007? It's just that when TP send you your list of years, it is grouped in to half financial years.
    Thanks if anyone can clarify this.

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