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Pension problems of a agency supply teacher.

Discussion in 'Supply teaching' started by Lara mfl 05, Jun 16, 2011.

  1. Lara mfl 05

    Lara mfl 05 Star commenter

    No advice. Just I have only 6 years + an odd no of days f/t TPS- all the rest is p/t supply.
    I'm assuming I'll be living of benefits if they're stillthere or the so-called 'mimimum pension the new govt is proposing supposedly not based on NI contributions.
     
  2. jubilee

    jubilee Star commenter

    You can contribute to a Stakeholder pension. At retirement you can take 25% of the fund accumulated as a lump sum if you wish and the remainder goes to buy an annuit. The contributions get tax relief but there is no employer contribution.
    Alternatively, you could tie any spare money up in a savings account. Take care with ISAs. The theory is good and they attract you in with half-decent rates of interest but that will be slashed a year down the line so you need to keep moving the money (staying within the ISA 'wrapper', not withdrawing it) to other providers to maintain the advantage of the tax-free interest. My MIL is a pensioner currently getting 0.5% interest on her accumulated ISA savings with her bank. She's a non-taxpayer and I keep telling her that she could get more then 0.5% interest on her bank's ordinary savings account!
    This year I've taken out National Savings certificates first (ISA later possibly) as the former pays more and is also tax-free (invested for for 5 years but accessible after 1yr and still generating more than the best ISA provider).
     
  3. magic surf bus

    magic surf bus Star commenter

    Further query (jubilee? You seem pretty clued up on all this). I had 27 and a bit years of unbroken f/t TPA contributions accumulated and I left in Dec 2009 whilst still on a TLR I'd held for a few years.

    What impact (if any) could b*ggering around on p/t supply, and only occasionally being paid to scale (and making TPA contributions) have on all of this? I'd originally calculated that my pension would peak in Dec 2016 due to the TLR still being included in the average salary calculation - does that still hold?
     
  4. jubilee

    jubilee Star commenter

    You're obviously best contacting the TPS or an organisation like Teachers Assurance for free advice but I think you can choose a pension retirement date that includes your 3 best years in the last 10 years, to get your 27 plus TPS years and any days accrued since based on your best salary. If that is before you are 60 you will have to take an actuarial reduction (equating to a 5% pension reduction for each year before 60 that you get the pension). If you wait until you're 60 to get the pension and your best payscale years are outside the previous 10 years, your pension will be based on the lower payscale (annual amount for the paypoint even if you've been p/t as the adjustment is made by the lower number of pension years accrued by being p/t).
    When you get an actuarially reduced pension, you could then get another f/t job in teaching and still keep getting the pension (obviously paying tax on the entire pension then and possibly highjer rate for some of it).
    If you take the pension at the designated age (60) and then return to work f/t, your pension payments stop so it's a good argument to take the pension even just a month or two early (retiring at the nearest term-end before age 60 and then getting taken back on or getting work elsewhere (friendly head, perhaps, agreeing to let you retire quietly and then get the post back?!)
    Any changes to the pension are supposed to only affect service on the new terms and your current pension rules should stand.
     
  5. magic surf bus

    magic surf bus Star commenter

    Thanks jubilee. I'll be 57+ in Dec 2016 so it'll be a balancing act between watching the pension drop after that point until 60 or taking the actuarial reduction. At least early retirement allows me to top it up with a part time job if necessary, although I'd prefer to stop having to work for money as soon as possible.

    One can only hope that the bits and bobs that get added to TPA in the next few years will help to offset some of the actuarial reduction, plus any savings we can accumulate. Interesting times.
     
  6. Thanks for the advice! It just annoys me that I can not take advantage of the teacher pension though it may not last until I reach that magic age!

    Steve.
     
  7. magic surf bus

    magic surf bus Star commenter

    Mrs MSB has told me that the nominal pension age for state sector workers rises to 66 in 2018. B*stards - that's the year before I'm 60. Looks like it'll be a case of claiming the pension no later than 59 and accepting at least a year's reduction whatever.
     
  8. jubilee

    jubilee Star commenter

    If your current TPS membership started before 1st Jan 2007, you are in the old TPS which has a retirement age of 60. All accrued benefits in that scheme, before any changes are made in the near future, will retain that age 60 retirement age.
    Any membership after the changes come in will be calcuted on the new pension age.
    You could thus get the full benefit of most of your pension at age 6o and take an actuarial reduction on the part that has different terms.
    If your post was about the State retirement pension, not the occupational one, you would trigger the TPS when you reached 60 (or whenever you chose after age 55) and would have to wait for the NI funded State pension until the new State retirement age.

     

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