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Early retirement help needed….

Discussion in 'Retirement' started by epjundi, Jan 27, 2018.

  1. epjundi

    epjundi New commenter

    Hi all

    I am looking at my options at the end of this academic year summer 2018.

    I have been teaching since 1985 and had one break in my pension contributions 2011-12 whilst working abroad. My salary as a HOD prior to 2011 was considerably higher than my present teacher salary.

    I really want my pension to be based on the 3 consecutive years 2008-11 which I guess means taking early retirement summer 2018, I will be nearly 58 then.

    The problem is I actually enjoy my job (within reason as I have less responsibility and stress) and would like to stay on till aged 60. This would I assume mean my pension would start to reduce, and be based on my current lower salary….I am right to think this?

    Not sure if I should retire this summer and take my pension and perhaps look for supply/part time work ( I would need to earn a similar salary to my present one)

    A colleague mentioned I could freeze my pension this summer and carry on working in my present job till I was 60….would that mean it would still be based on my salary from 2008-11 with no percentage reduction if I worked till 60.

    Or can I take my pension this summer and continue working in my present position….hmmmm that would mean getting my pension and earning my present salary.

    I know it’s very complicated so any help and advice would be greatly appreciated:)
  2. ikon66

    ikon66 Occasional commenter

    You have lots of options most of which have been asked and answered in this forum. I’d go on TP website and look at the calculators and then make a decision based on how much you’d get
  3. heldon

    heldon Occasional commenter

    just withdraw from the pension scheme
  4. Sundaytrekker

    Sundaytrekker Star commenter

    Or take phased retirement accessing up to 75% of your pension whilst reducing down to four days a week. It is not allowed to just stop and restart the same job no matter what others will tell you. It must be a different role.
  5. lindenlea

    lindenlea Star commenter

    You don't have to stop working if you don't want to. Freezing your pension sounds a good plan and save the equivalent money somewhere different. Speak to TP first.
  6. mrkeys

    mrkeys Occasional commenter

    If you love your job and have an excellent relationship with your HT then take ARB and have a break in service of at least one day then continue to work at your school under a new contract.
    If you tale ARB you can earn as much as you like without any effect on your pension. You can even pay into the new scheme should you wish.
    It all depends if your current HT will allow to make use of this opportunity.
    Whatever you decide double check with TPS and your union. Facts that I once understood to be correct may have now changed.
    Good luck.
    emerald52 and applecrumblebumble like this.
  7. applecrumblebumble

    applecrumblebumble Lead commenter

    I think you need to have an depth discussion with TPS and check out all options. I tend to agree with mr keys in terms of ARB, you will take a small reduction of about 8% but at least you will be calculated on your TLR salary and you can carry on working and gaining extra pensionable service. I do not think you can simply freeze (defer) your pension on the old scheme with such a short break in service.
    emerald52 likes this.
  8. seasoned

    seasoned New commenter

  9. seasoned

    seasoned New commenter

    Even with ARB - are you not limited by your 'salary of reference..'?
  10. Sundaytrekker

    Sundaytrekker Star commenter

    No, with ARB you can earn any salary afterwards. It is an advantage of ARB.

    With respect to whether there is an excellent relationship with the headteacher or not , this is irrelevant. You have to follow the pension rules and so do they. They may not know much about them but the comeback would be on the retiree if they got it wrong. Possible repayment of pension benefits. It is not about whether the head will allow it or not.

    In order to take your pension there must be a genuine resignation from your post. After retirement it is possible to work again in other posts and this is where at least a one day break is important. But the new position must be a different role and must be the result of open recruitment, at least an internally advertised post.

    If you want to stay in the same post and take your pension then look into phased retirement as that is what it was designed for. This could be related to a flexible working request to see if the school are able to accommodate it.

    There was a dispute about this issue in our school a while back. The teacher felt entitled to take a day’s break and carry on. The regional union rep backed the head’s stance that this was no longer allowed and didn’t fit the pension rules.
  11. Sundaytrekker

    Sundaytrekker Star commenter

    Withdrawing from the pension scheme completely is a slightly different issue. You are best to phone TPS to be sure of where you stand on all of this.
  12. mrkeys

    mrkeys Occasional commenter

    My point about having 'an excellent with the HT' was that there is much more chance of an agreement with the teacher and TPS than with a HT who is less 'supportive/kind/generous etc'.

    In any event I did add that advice needs to be taken from both union and TPS.
    I would like to see some clarification on break in service.
    Sundaytrekker likes this.
  13. swimblue

    swimblue New commenter

  14. mrkeys

    mrkeys Occasional commenter

    Thanks swimblue.
    As I have stated before, the chances of a new and different contract will be very much higher with a HT where you have an excellent realtionship.
    Good luck to epjundi, I am sure that there will be many teachers interested to follow further developments.
  15. epjundi

    epjundi New commenter

    Thanks so much everybody for your generous time and invaluable advise. I certainly feel I now understand the ARB option and possible ‘one day rule’.
    Any further advise and guidance on the ‘freezing my pension’ option would be greatly appreciated.
    For example could I freeze my pension from summer 2018, continue working for a couple more years, then receive my pension in 2020 based on my 2008-11 higher salary.
    I assume the extra two working years from 2018-20 wouldn’t count towards the frozen pension.
  16. phatsals

    phatsals Senior commenter

    You can 'opt out' any time you like, it's all done online via TPS. Your last 10 years service would be up to that point and you can take your pension whenever you like.

    As you would no longer be contributing, any continued service would not count. You could also choose to 'opt back in' at any time up until drawing your pension. The advantage to leaving it would be less of a reduction for ARB, about 4%pa.

    You could save your contributions in a SIPP during those 2 years and they would attract additional tax payments, 20% for regular tax payers or 40% for higher earners.
  17. tasha77

    tasha77 New commenter

    I have done just this - opted out of the TPS to preserve the best 10 years. You can use the calculator on the TPS website to work out if you would be better off doing so (compared to accruing the additional service days if you stayed in). Be aware that you will lose the in-service life insurance benefit if you opt out.
  18. m_mcdermott1

    m_mcdermott1 New commenter

    I have also opted out of the TP scheme (as of 31.12.17), but continue to work in same role/position/hours. There are many doing this, especially now, as the most lucrative years in terms of the adjustment made to actual salary to get the revised salary figure that your pension will be based on are now 'dropping out' of the calculations. Anyone thinking of leaving in the next few years needs to serious look at this or else could lose out in a big way. It's a shame not everyone knows this. Spread the word. I have a colleague at work to thank for informing me. He told me of a very sad tale of a colleague at a former place of work, who because of relinquishing a much more senior position held a while ago, on a much higher salary lost out by a lot of money. Take care.

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