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Supply teaching and pension

Discussion in 'Supply teaching' started by helensimpkin, Mar 5, 2011.

  1. Can I still contribute to the teachers' pension scheme if I am a supply teacher? I realise I won't receive the Government's share.
     
  2. Can I still contribute to the teachers' pension scheme if I am a supply teacher? I realise I won't receive the Government's share.
     
  3. Lara mfl 05

    Lara mfl 05 Star commenter

    I do, but I'm paid thro' the LA.
     
  4. magic surf bus

    magic surf bus Star commenter

    Only if you're paid via the LEA. Supply Agencies' own payroll systems are not part of the TP scheme. You can voluntarily pay extra to boost your pension but the amount required is eye-watering.
     
  5. jubilee

    jubilee Lead commenter

    If LA paid you automatically have pension deductions made (and the LA /school budget contribute the employer share) unless you elect to Opt Out.
    A private agency may offer you a stakeholder pension but you cannot contribute to the TPS from agency earnings.
    In the old TPS, you used to be able to buy Added Years (more expensive the older you were and the higher you were on the payscale). The new TPS, running for the last 4 years, only allows you to buy extra annual pension in retirement. You decide that you want another £1k per year in retirement, say, and they calculate how much you need to contribute as a lump sum or as a regular deduction from pay over 10 years (an unlikely option for those doing irregular supply teaching). You pay the employee and employer's contribution.
    Most supply teachers, unsure if they are actually going to have any work in the short or long term, would not entertain handing over a lump sum now for a future increased payout in retirement. I'll actually have a great monthly income with the state retirement pension and my modest TPS pension than I have nowfrom drastically reduced supply bookings. There's no way I'm putting savings into expensive extra TPS provision.


     
  6. Thank you for that!
    If I don't continue with the teachers' pension scheme, what happens to all the money I have already paid in?
     
  7. jubilee

    jubilee Lead commenter

    You will add to the scheme whenever you get LA paid teaching work (temporary or permanent, full-time or part-time.

    If you joined the TPS before 1st Jan 2007 and have contribution gaps of under 5 years, your future contributions should go into your old TPS terms and conditions (for retirement age of 60 instead of 65, for instance). If there is a longer gap, future contributions will go into the new TPS.
    As long as you have a minimum of 2 years in the scheme, you will be able to draw a pension on retirement.
    Under 2 years and you can withdraw the contributions, minus the tax and NI that you avoided when making the contributions. If you are intending to carry on in teaching or want the maximum pension possible on retirement (from another career or teaching) withdrawing the contributions should not be considered because:
    1) you can add to the TPS in the future.
    2) you can transfer the pension accrued into a comparable pension scheme in another career.
    When joining the pension in another career, you have 12 months to find out if your existing pension/s can be transferred into the new pension and whether you are more likely to generate a better retirement pension from transferring the funds and buying years in the new pension instead, or whether drawing a TPS pension and another pension might be better for you.
    Always seek financial advice before making big decisions on pension pots!

     

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