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One day break between contracts?

Discussion in 'Retirement' started by Beauherne1990, May 16, 2020.

  1. Beauherne1990

    Beauherne1990 New commenter

    I have just been offered 3 days a week in September by my current school. I am happy about going part-time and was originally going to take phased retirement. Now I am thinking I'll take my whole pension with the age related reduction (I will be 55 in September). I mentioned this to the HT & I think she will be fine with it. I know I have read on this forum about a one day gap between contracts, but now can't find the posts! Can anyone clarify/confirm that it's possible? I presume I have to resign & then be re-appointed part-time? Is there anything I need to be aware of? I don't want to jeopardize my opportunity!
     
  2. djhappy

    djhappy New commenter

    I am in a very similar position. I will be taking my pension from 1st September, but have now been offered at least days a week at my current school, with the possibility of perhaps even more depending how the current coronavirus situation develops. I will be 57 in November.
    I also remember there being a thread but cannot find it.
     
    Beauherne1990 likes this.
  3. Sundaytrekker

    Sundaytrekker Star commenter

    If you are starting a different role, which both of these sound as though you are, then you can take your pension benefits before starting in the new part time role.

    If you’ve already had an offer and a conversation with the head then I would word your resignation letter something like: ‘ I resign from my full time post of ...... on August 31st 2020 and intend to take my teacher’s pension retirement benefits from September 1st. I accept the offer of part time ......... from September 2020. Please can the new contract start from September 2nd 2020 to allow a one day break for retirement benefits purposes.’ Make sure the person administering the HR forms understands what is happening.

    You might still wish to run through your sums so that you are sure that you want to take all of your pension with a reduction at this point.
     
    Beauherne1990 likes this.
  4. Beauherne1990

    Beauherne1990 New commenter

    So it's a situation that is allowed then? My pension is pretty small, so that's why I would like it early. Plus my salary was higher ten years ago because I was a HT. My HT is checking with personnel about the one day contract gap, but I knew I had read about it on here...
     
  5. phatsals

    phatsals Senior commenter

    The one day break is about it being flagged with TPS as a break in service. One contract ends, you become a new employee. You can then rejoin the pension under the new scheme, starting to accrue benefits. On TPS you would see retired, re-employed. You don't need two years service to earn the new pension, it starts immediately. If you have less than 1 year under the new system it would be given as an annuity.
     
    tuscanydays and Beauherne1990 like this.
  6. diddydave

    diddydave Established commenter

    You have to be 55 so you will need to have the new contract start after your 55th birthday as you need to claim your pension, at the earliest, ON your 55th birthday (check this with TPS to be sure).

    This may help: https://www.teacherspensions.co.uk/contents/utilities/pdf.ashx?u=https://www.teacherspensions.co.uk:443/news/employers/2015/11/retirement-eligibility-and-one-day-rule.aspx&h=C34C2788EEFDE375E0A7BA7B245E5C456AB2426081ECB78A2BC3AF79691E2BF5

    Also check that it's not worth opting out NOW...if your benefit statement has Method B as the best option and it is using salaries from the furthest back in your history your pension may be decreasing rather than going up!
     
    tuscanydays and Beauherne1990 like this.
  7. Beauherne1990

    Beauherne1990 New commenter

    Yes, I am keeping a careful eye, at the moment it's still on the up, but my best 3 in 10 will start to decrease in 2021. I need to check about the new contract start then, as my birthday isn't until the 19th...
     
  8. diddydave

    diddydave Established commenter

    Great, but be very wary...the inflation increases can mask an underlying fall. The rule-of-thumb I use to get a rough confirmation is to look on the benefit statement at the Method B and if it is the bottom-most salaries (including those from exactly 10 years ago) then I want to look in more detail. If it's not the bottom-most then there's no worries.

    If a closer look is advised then I'd compare the salary from 10 years ago (marked as being used with Method B) with the one, also marked method B, from the nearest point in time - i.e. 8 years ago. Every month that goes by you are replacing the former with the latter.
     
    Beauherne1990 likes this.
  9. Beauherne1990

    Beauherne1990 New commenter

    I'm checking each month that goes by because I have read your replies to others.. I am not sure how I'm going to work out this new contract with the school though as they obviously want it to start at the beginning of the month..
     
  10. diddydave

    diddydave Established commenter

    I'd suggest that you aim for the following:
    1) Continue with current contract, but going part-time from 1 September to 26 September (you don't need a new contract to do this I believe)
    2) Do not work on 27th September (Sunday) - you will miss 1 day's pay. (But check with TPS that you can put a Sunday as your 'retirement' day.
    3) Start a new contract on Monday 28th September.
    4) Put Sunday 27th as your retirement date with TPS.

    Of course if your timetable is such that you don't teach on certain days you should be able to sort it so that you are not employed for that particular day some time after the 19th.
     
    Beauherne1990 likes this.
  11. Beauherne1990

    Beauherne1990 New commenter

    Thanks, that makes sense. I'd like to say how very grateful I am that you share your knowledge on here.
     
  12. Sundaytrekker

    Sundaytrekker Star commenter

    I'm going to give a slightly different opinion. The one day break should only happen at the point when you start the part time contract. The rules for taking pension benefits state that there should be a genuine cessation of employment contract. There should be a change of role or a change in FTE. So I don’t think you should do this on a Sunday in September. You won’t be genuinely ceasing that role.

    There are those here who say they have done it and disagree with me so do take further advice before making a final decision.
     
    Beauherne1990 likes this.
  13. Beauherne1990

    Beauherne1990 New commenter

    Yes I have been thinking about it & I am sure I would have to resign from my current full time position on the 31st August as per the contract requirements. Therefore I can't take my pension until my 55th birthday on the 19th & I wouldn't be able to start the new part time contract! Perhaps they might be able to delay the start date...
     
  14. 50sman

    50sman Lead commenter

    Remember doing this method means you lose any redundancy pay for two years
     
    Beauherne1990 likes this.
  15. Beauherne1990

    Beauherne1990 New commenter

    Oooh there's so much to consider!!
     
  16. teejay24660

    teejay24660 New commenter

    Does there have to be a change in role? Can you not cease one contract and stat a new one with w one day gap?
     
  17. diddydave

    diddydave Established commenter

    This is the clarification on the TPS site:

    "Your payment of AAB pension benefits is conditional on the termination of all your contracts of employment which are eligible for the Teachers’ Pension Scheme. If you are planning to return to “teaching” employment after your retirement date, your “post‐retirement re‐employment” must be under a new contract of employment and must not commence until after a break in service of at least one calendar day."

    https://www.teacherspensions.co.uk/...7BA7B245E5C456AB2426081ECB78A2BC3AF79691E2BF5
     
  18. zagubov

    zagubov New commenter

    You would need a new payroll number and probably a new job title.
    You can arrange for a new contract to arrive close to your resignation letter.
    The date has to be at least one day after your first day of retirement. In my case the fact it was a weekend was unimportant although I didn't make a big issue of it.
    I'd worry if the day out was in a holiday it might make a difference; I'm not a legal or financial expert.
     
  19. djhappy

    djhappy New commenter

    So, I am stepping down from my SLT post on 31st August. I am taking my pension early - I will be 57 in November.
    Yesterday I was offered a 3 day a week contract from 2nd September (plus the possibility of other work in the other two days).
    I assume that I will have to fill in a re-employment form with the TPS. I notice that once you do this they begin an "abatement process" which could suspend your pension until the beginning of the next tax year. Has anyone experienced this?
    Also, do I have to opt back into the TPS? Should I opt back into the TPS? I will be working on this contract for at least one year, but it would be for a maximum of three years.
    I have lodged my question with the TPS but it is always useful to hear from people who may have done similar.
     
  20. rooney1

    rooney1 Occasional commenter

    I 'retired' on 31st August 2017 and took my pension one month before my 60th birthday. At the time I had 2 part time jobs and had new contracts that were supposed to start on Sept 2nd. Both were hourly paid and not regular hours each week. For one of them I had to have the contract redone as they had put Sept 1st as the start date and the other one didn't start until 17th Sept. I do contribute to the new TP. The most difficult thing is getting the service record correct. I think this is because my work is sporadic. Some months I may work the equivalent of 3 days a week and some months I do a lot less. One employer is ok at getting it updated the other is terrible. At the moment I am trying to sort out from November 2018! Previously I had to quote how much I had been paid. I won't get much pension under the new scheme but for me part of still contributing is the death in service benefit which would help my OH if the worst happened. Keep your pay slips and check your service record.
     

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