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Pension Advice- Independant School

Discussion in 'Pay and conditions' started by suzysue21, Jun 24, 2011.

  1. Hi Everyone,
    I have just got a job in an Independant School and they told me that they do not pay in to the Teachers Pensions scheme so I will have to arrange for my own pension from September onwards! I know that the teachers pension is the best around (currently- before all the possible government changes) and I have been paying in to it for the past 5 years but I have no idea what to do for the best??
    I rang the pensions company and they were useless! They just said I would be a deferred member! What does this mean??
    I need advice on what best to do- do I keep the amount I have paid in over the past 5 years and rejoin IF I get back in to state teaching in the future or do I get the money I have paid in so far and put it in to another scheme? Can I rejoin at a later date if I do this??
    Also does anyone know of any good pension schemes that I could join? When I rang the pensions scheme they said they were not allowed to advice me on that- great help!!
    Any advice would be much appreciated
    Kind Regards
     
  2. This is something you should have looked at before taking the job. The majority of indy schools are in TPS, other offer some form of alternative. I have not heard of one that offers any form of pension. You are missing out on a tax free contrbution of 14.1%, equivalent to a 20% gross pay cut.
    As a deferred member your pension with TPS would increase in line with inflation (CPI) and get paid at 60. If you move to another school which offers the TPS pension your membership would continue. Nobody on here or at TPS can advice you about putting the money into another scheme. In the past a number of teachers did move there funds out and are now having to claim compensation from IFA's for mis-selling.
    The main problem is the lack of employers contributions. As an individual arranging your own pension you will find the fees are very high. It is against the law for TPS or any individual to give you advise on this.

     

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