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Leaving teaching, but no pension just yet

Discussion in 'Retirement' started by PeterQuint, Jun 1, 2019.

  1. PeterQuint

    PeterQuint Lead commenter

    Whilst it's not 100% certain, it does now loo like I'll be leaving teaching the of term.

    However, I'm not 55 until next year. I'll almost certainly be taking my pension then.

    Is there anything I need to do this summer? Do I need to get in touch with TPS and formally leave?
     
  2. diddydave

    diddydave Occasional commenter

    No. We just stopped work and our TPS accounts automatically became 'deferred'. When it came time to claim the pension we did it all through the TPS site and the lump sum arrived on time and the first monthly payment is due later this month.

    One thing to check before you leave, and I'm sure you have already from reading your other posts, is to make sure your service record is correct. Far easier to badger your employer if there is anything amiss whilst you are still working for them.
     
  3. Prim

    Prim Occasional commenter

    Good luck Peter, keep us up to date with your journey.
     
    PeterQuint and lindenlea like this.
  4. paulstevenjones

    paulstevenjones New commenter

    How come you’re leaving early? Had enough? Are you going to try another job?
     
    PeterQuint likes this.
  5. diddydave

    diddydave Occasional commenter

    oh...and buy a calendar!

    I never needed one before as everything revolved around the working week, now we have to check it before committing to anything as it's packed!
     
    Prim, PeterQuint and FrankWolley like this.
  6. PeterQuint

    PeterQuint Lead commenter

    Thanks everyone.

    I’ll post more details about my ‘journey’ later on.
     
  7. sci

    sci New commenter

    Good luck. If you can survive without your pension for 1 year-is there anyway you can survive without it until you turn 60? Just thinking about the reduced sum vs benefits now calculations. Good luck in your journey
     
    PeterQuint likes this.
  8. PeterQuint

    PeterQuint Lead commenter

    I’ve looked at that. The amount I gain in 5 years of pension from ages 55-60 substantially outweighs the relatively small uptick in pension if I don’t claim until I’m 60.
     
    HS65 and Prim like this.
  9. PeterQuint

    PeterQuint Lead commenter

    Okay, I just wanted to clarify what my position is here.

    At the end of this month I receive my last month's pay from my school, which I left yesterday.

    For the last year or so my Final Salary pension has been decreasing by around £25 a month, due to the salary of reference being taken from my best 3 years from the last ten, which are always the three oldest years.

    If I have this right, as soon as TPS don't get notice of a pension contribution at the end of August, they'll have me as a deferred member, out of the scheme. My best three years are then frozen where they are now (or where they'll be in a month's time); even though the earliest month will be over 10 years ago, it's based on the last ten years to which I was contributing. In short, the £25 a month reductions will cease.

    Do I have that right?
     
  10. phatsals

    phatsals Occasional commenter

    Yes. It isn't a reduction, it's a recalculation, from now on it will only increase in line with CPI.

    You are now 'out of service' as you have been made redundant. You can claim your pension at 55 or whenever it suits you thereafter.
     
    PeterQuint likes this.
  11. lemonmuffin

    lemonmuffin New commenter

    Yes, you are in a similar position to me. I left my teaching post at the end of April (to preserve my best three years and I needed a break) contacted TP to confirm what my ‘status’ would be and just today have received an email to confirm that I am a deferred member, hurrah. There are details about my options and in fact I’m still considering what these might be, could claim benefits, I’m 56 but will probably leave it for now, put in some applications, see how it goes. If I do secure another teaching post I will give careful consideration as to future pension contributions as it’s still a good option but preserving my best three years was essential. Good luck
     
    PeterQuint likes this.
  12. HS65

    HS65 New commenter

    I'm in a similar situation ..... currently trying to establish what is best. Presereving best three which are the three firthest back ..... or paying in for a maternity cover which will add more days into the calculation but will take off some of my best years to be replaced with next year.
     
  13. PeterQuint

    PeterQuint Lead commenter

    Okay, just got off the 'phone to TPS, and they've confirmed a lot of what has been said.

    1 - I don't need to do anything about being a deferred member. As soon as they stop receiving payments into my pension, I automatically become deferred, and I don't have to register as such.

    2 - My 'best 3 years from the last 10' will effectively be frozen, other than inflationary updates. I won't see the monthly drops to my final salary pension that we've all witnessed over the last few years.

    Now this is interesting:

    3 - I have a plan that I will need £12,000 a year in pension, and the pension I'm due to get will be just under £13,000. I was worried about how I'd be able to accurately stipulate this in my pension application form. They said to ring them 4 or 5 months before I want to retire. As long as my service history is correct and fully up to date (it is currently perfect, with just 1 month's service to add at the end of this month), they will be able to give me a VERY accurate estimate as to my final pension, and tell me exactly what I need to put on the form to claim the correct amount of additional lump sum.

    4 - They are aware of the uncertainty regarding the McCloud Judgement. They are hoping to have some news very soon as to what changes will be made.
     
    Sundaytrekker likes this.

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