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Retirement and paying in question

Discussion in 'Retirement' started by HS65, Jul 12, 2019.

  1. HS65

    HS65 Occasional commenter

    I'm currently out of the TPS scheme, on supply ..... looking to go in February but continue supply. However, possible maternity cover starting in January direct with a school. I know if i pay in to the TPS again that it will affect it ...... However, what if I just work but dont pay in?

  2. diddydave

    diddydave Established commenter

    Check with TPS to get the proper advice but I suspect you will not be able to take the pension whilst working as a teacher (it's whether the job is 'qualifying' not whether you are paying into the scheme).

    Also, if you do go back into the TPS check what effect it will have on your 'best 3-in-10' average salary - it could be significant.
    Prim likes this.
  3. Sundaytrekker

    Sundaytrekker Star commenter

    If you mean you want to take your pension in February then you maybe could take it a few weeks earlier, say December 30th, before starting a new contract on January 1st. Then you can decide whether to stay in the scheme with Additional Service After Retirement (ASAR) or opt out.
    border_walker likes this.
  4. emerald52

    emerald52 Star commenter

    Try to stay in as it is an excellent scheme. The employer has to pay a big contribution and you get tax relief so you lose a lot if you opt out.
    border_walker likes this.
  5. diddydave

    diddydave Established commenter

    Sorry @emerald52 , but I think that's too sweeping a suggestion, they really do need to check their numbers and the consequences using their exact figures.

    If the OP has been out for years and only intends going back in for a few months they risk greatly reducing their best 3-in-10 and even with the extra service they could end up with less than if they didn't go back in.
    emerald52 and mjfp509 like this.
  6. emerald52

    emerald52 Star commenter

    Agree. Not enough information from OP.
  7. diddydave

    diddydave Established commenter

    Back to the OP's question - if you opt out if will not affect your accrued benefits (up OR down) but @emerald52 's comment about the employer's contribution (about 23%) reminds me that this is something you may be able to use to your advantage SHOULD you decide you'd be better off opting out by asking your maternity cover employer if they would pay you 10-20% more IF you opt-out of the pension scheme thereby saving THEM the 23% costs.

    The employer contribution is a bit of a red herring as it has no direct effect on your pension benefits, I think it's more of a smoke-and-mirrors trick the government has used to make it look like they have dramatically increased school funding without costing them an extra penny!
  8. HS65

    HS65 Occasional commenter

    Thanks for the replies.

    I wondered I found it might be “qualifying” rather than actually paying in. I am assuming thought that working through an agency is not qualifying? If that is the case I might have to do that if I agree the maternity cover that starts in January.

    I’m intending to take early retirement as soon as I’m 55, which is in February so can’t really take it any earlier. I will continue doing supply .... then if a permanent role comes up I’m assuming I can opt back in to the new scheme?

    I’ve only done 20 years and 200 days so pension won’t be a fortune, and of course reduced by 20% for going early. However, topped up with supply fir a few years should see my mortgage paid off. Unless I’ve missed something?
  9. phatsals

    phatsals Established commenter

    Why not complete the mat cover through the school and claim your pension at the end, in the Summer? That way, slightly more pension and no worries about opting in or out. After that, if you get more supply via the school or a contract, you can have the pension, contribute to the new one and earn your keep.
  10. HS65

    HS65 Occasional commenter

    The problem I’ve got is that my best three years are the three furthest back ....I’m assuming if I start paying in again that one of those years will be knocked off will end up a bit worse off.

  11. phatsals

    phatsals Established commenter

    Are you officially out of service at the moment, or have you had breaks in service? If so they, are discounted for the 'best 3 in 10' calculation.

    This happened to me, My 'best 3' fell off a cliff due to P/T service. The dates given via TPS online were, for me, inaccurate. Fortunately they went back further and made a considerable difference to me.

    Having said that, it may not be the same for you. You could always do the mat cover, not pay in, 'opt out', but yet again, claim at in the Summer rather that Feb, it won't really make much difference to your income, you're covered with your job, but it could mean a further 2% or so pension.
  12. diddydave

    diddydave Established commenter

    I'd strongly advise you not to 'assume' but to get definitive answers.

    My understanding (but check this with an expert!) is that your best 3-in-10 could well be hit harder than you think. If you've been out of the TPS for 1 year and then start in again for a year your best three in ten will lose the last 2.

    The ten year period isn't your last ten working years, its a straightforward 10 calendar years - so if you are paying and finish in February 2020 then your best 3-in-10 will be counted from March 2010-February 2020.

    I think there are different calculations if you have a break of 5 years or more but again do get someone to go through your exact circumstances with you to be sure.
  13. HS65

    HS65 Occasional commenter

    Thanks again ..... been a while but still trying to get some written clarification from TPS. Got something but didn’t make much sense. I did speak to someone on the phone about it ..... said I needed a day’s break in service and somehow I wouldn’t lose out with the best three years.

    Now I’m wondering about the effect of an extra year’s contributions (if it ends up being that long) and then retire vs retire earlier taking the pension.

    Calculator time ;)


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