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Break in service question

Discussion in 'Retirement' started by PeterQuint, Apr 18, 2019.

  1. PeterQuint

    PeterQuint Lead commenter

    I’m 54, and might be moving jobs in the summer. I turn 55 in November.

    If I leave my current post at the end of August and stop paying into my pension at that point, can I draw my pension in November?

    Does that count as a break in service?
  2. fariduddin

    fariduddin New commenter

    I think it changes your status to deferred member. In terms of teacher pay and conditions it is continuous service (employment rights) because you go from one contract to another without a gap. You can call teacher pensions to get advice regarding the pension.
    Brokentree likes this.
  3. PeterQuint

    PeterQuint Lead commenter

    So does that mean yes or no? :D
  4. PeterQuint

    PeterQuint Lead commenter

    Sorry, I should add, there may be a break of service before starting the new post.

    HOWEVER, I will still be under 55 when I start the new post.

    Does that make a difference?

  5. fariduddin

    fariduddin New commenter

    Teacher pensions have a leaflet titled 'breaks in service' which you should read. It mentions changes since 2015 and also sets put the criteria for different types of members eg tapered, protected . Re break in service, the significant timescale seems to be 5 years. But important you read it be ause it depends on a number of factors.
    PeterQuint likes this.
  6. Brianthedog

    Brianthedog Occasional commenter

    You need to apply for your pension ARB when you reach 55. So presumably you will be in your new job by then. So you would have to have a break in service from your new job. That could prove tricky, unless the new employer is prepared to have you on a temporary contract initially, then have a minimum of 1 day break in service then reemploy you on a different contract.
    Dorsetdreams and PeterQuint like this.
  7. yodaami2

    yodaami2 Lead commenter

    Yes. What @Brianthedog said. You need to retire to draw your pension! But I think I get what you are asking, which is does stopping paying pension then trying to draw it down counting the none paid gap as a "break in service" that they talk about for early retirement. I don't know the answer but I'm suspecting not. Because otherwise why would they need the "drop salary by 20%" rule for phased retirement. But it is a great question. I'll be following the thread.
    Dorsetdreams and PeterQuint like this.
  8. PeterQuint

    PeterQuint Lead commenter

    Many thanks.

    Quite often these leaflets are online. Do you have a link?
  9. fariduddin

    fariduddin New commenter

    PeterQuint likes this.
  10. fariduddin

    fariduddin New commenter

  11. fariduddin

    fariduddin New commenter

    I am starting phased retirement from 23rd April cutting my HT post to 0.7 job share, staying with the same employer. There are conditions to meet e.g. reduce pay by at least 20% for at least 12 months. I have ensured there is no break in service so will continue paying into the scheme.

    There are factors such as in service ill health and death benefits to consider. Health issues are what has led me to cut down my hours but I dont want to compromise my 32 years of continuous service.

    I think it may depend on the length of the break. Please check carefully and get adice from TP and your union.
  12. yodaami2

    yodaami2 Lead commenter

    PeterQuint likes this.
  13. PeterQuint

    PeterQuint Lead commenter

    You’re right, that’s the one.
  14. Brokentree

    Brokentree New commenter

    Apply in advance for your pension giving your last date of service (the form asks for this).
    Think about the date in respect of percentage of actuarial reduction you are happy with.
    Make sure this date is after your 55th birthday to qualify for ARB.
    Don't go into school for a day!
    Pick up new contract after that one day break. All that matters is that the break of at least one day is after you are 55 (or maybe on your birthday?) or you are not eligible for ARB.

    Just done all this and get my pension and lump sum this Wednesday (my break day) ... back to work on Thursday! Just debating whether to remain in for new pension after retirement or opt out...

    Good luck!
    Dorsetdreams likes this.
  15. Brokentree

    Brokentree New commenter

    You do have to end a contract. Have the break of one day. Then start a new contract.... you don't then need to fill in a returning to work form as your new salary has no effect on your pension due to taking ARB.
  16. PeterQuint

    PeterQuint Lead commenter


    Not sure it applies in the circumstance I’m discussing.
  17. PeterQuint

    PeterQuint Lead commenter

    I’ve just rung TPS, as this scenario is looking more and more likely.

    The young lady I spoke to was clear that I would definitely need a break in service. She went away to check and her supervisor confirmed this is the case.
    Prim likes this.
  18. PeterQuint

    PeterQuint Lead commenter

    For the record, and for absolute clarity.

    I rang TPS (see previous post) as I'd sent a message on my account, but figured that I couldn't be bothered to wait 10 days.

    Today I received a reply.

    It says, you guessed it:

    Am I safe, given that I have this in writing?
  19. diddydave

    diddydave Established commenter

    Probably...but looking for any possible cracks I'd say that they have not told you that you can draw your pension whilst still in employment, so I would ask them another question. "If I am opted out of the pension scheme and working as a teacher can I take my AAB pension?"
    PeterQuint and Dorsetdreams like this.
  20. 50sman

    50sman Lead commenter

    Also you need to make it clear in your new job if it is in teaching that you do NOT want to pY into TPS as the default is to pay into it.
    PeterQuint likes this.

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