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Teacher Pension vs Private Pension

Discussion in 'Pay and conditions' started by CastelloJC, Apr 7, 2011.

  1. I am a lucky ST who is starting an NQT post in Sept 2011. I have had a small private pension for over 15 years (opted out of serps) and now have been promoted to either accept inclusion or exclusion from the teachers pension. Does any one know an unbias pension advisor I could speak to or have any advise as to the pros and cons of joining the teacher pension scheme.
    Thank you
     
  2. Remember that you pay in 6.4% at present with the employer paying 13%, even if teachers end up paying 9.?% the employer will staying more into your pension pot than you will be. Paying in to the TPS is a bit of a no-brainer. The only time it may not be of interest is if you plan to spend less than 2 years in teaching.
     
  3. AdmiralNelson

    AdmiralNelson New commenter

    Back a while (1980s, I think) some teachers left the scheme for a private pension; most quickly regretted it. Think carefully before turning down the TPS - it is one of the 'quid pro quos' we get for our relatively poor salary...
     
  4. jubilee

    jubilee Star commenter

    The TPS is a defined payment Final Salary scheme.
    All teachers not yet on the top of the mainscale or Upper Pay scale will start paying in based on lower scale pay and get a pension based on higher scale pay in their final years of teaching.
    You can even investigate whether your present pension pot can be invested int he TPS. You can make transfers from compatible pension schemes within 12 months of joining a new pension.
    If interested in finding out how many years you would get in the TPS if your pension were to be transferred, get an enquiry in early (TPS will send you paperwork to pass onto your current pension provider). Eventually, you will hear what the conversion rate is and you can decide to leave the pension where it is or transfer it before the 12 month deadline is up.
    My sister was in industry for 10 years and transferred her pension pots into the TPS. She is rising quickly (acting deputy Head after 5 years in teaching and expecting to be a Head in a few years) and her transferred pension will generate dramatically more pension than if it had stayed invested elsewhere.
    You could ask your Union foradvice on financial advisors who know about the TPS.
     
  5. Not remotely 'relatively poor' !
     

  6. You will not find a single IFA willing to speak to you. The last ones to do so, and advise turning down massive employer contributions into TPS, got ruined by heavy compensition claims.
     
  7. AdmiralNelson

    AdmiralNelson New commenter

    Compared to the salaries on offer over a career for graduates with good degrees from the top universities, yes it is...
     
  8. ilovesooty

    ilovesooty Star commenter

    Another one in agreement here.
     

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