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Dear John- Private supply agencies and pension contributions

Discussion in 'Pay and conditions' started by bobbycatrules, Nov 25, 2011.

  1. bobbycatrules

    bobbycatrules New commenter

    Dear John,
    I have been working for private supply agencies for the past 2 years since finishing my NQT year. I like supply and for the near future I will be continuing supply in this way. At times I have worked for my LEA and as a result, I have contributed a small amount to a teachers' pension- TPS?- though not a lot.
    Is it possible to carry on contributing to the TPS through the private supply agencies or should I set up a whole new pension scheme?
    I'm 32 and I must admit, I don't know much about teachers pensions, except that I should get my skates on and start regularly contributing to something. What do you recommend?
    Thank you.
  2. jubilee

    jubilee Star commenter

    You cannot contribute to the TPS from private agency paid teaching.
    It's possible that your agency employer ofers a Stakeholder pension scheme but unlikely. Stakholder pensions allow you to pay in sums of money, get tax relief on the contributions and, on retirement, use the fund to purchase an annuity. You can also take 25% of the invested fund as a lump sum on retirement.
    Annuities are fairly complex and you have no guarantee of what a given fund will generate in monthly/annual income in retirement (as opposed to a final salary scheme like the TPS).
    Women get less from the same size of annuity fund as they live longer on average.
    Smokers get more than non-smokers as they live shorter lives on average.
    Healthy retirees get less than those in poor health.
    Some people decide to save/ invest themselves rather than use a Stakeholder pension or other private pension. The downsides are not getting tax relief on the savings. The advantages are having acdess to your fund before retirement if you need it and having the entire savings in available cash when you retire.
    You might want to take professional financial advice to plan for your retirement.
    You might also want to prioritise LA paid supply teaching so that you can contribute more to the TPS.
  3. bobbycatrules

    bobbycatrules New commenter

    Thanks for your thoughts, Jubilee. I think I may have to take independent financial advice.

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