1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

Understanding teachers’ pensions

Discussion in 'Retirement' started by TES_Rosaline, Jan 8, 2018.

  1. jubilee

    jubilee Star commenter

    You don't have to take the annuity offered by the AVC provider that you have been paying into. You can request a transfer value and get annuity quotes from other companies.

    Two people who save the same amount with an AVC provider (for the same length of time) will get different payouts even if they trigger the AVC at the same time. Annuities are based on calculations about your life expectancy. Women tend to live longer than men and thus get a poorer payout as they are expected to be drawing the annuity for longer. Those in poor health get a bigger payout than those who are healthy. Smokers get a bigger annual payout than non-smokers.
  2. loublou554

    loublou554 New commenter

    Are you all sorted now then Mr Media?
    I ask because I am also a transition member, don't have any AVCs, have spoken to TP several times but still not 100% about the exact date I need to retire.
  3. MrMedia

    MrMedia Star commenter

    No not yet. I continue to dither...
  4. mikebez1

    mikebez1 New commenter

    Hi. Is there anywhere that explains the transition part clearly....
  5. MrMedia

    MrMedia Star commenter

    Not to my knowledge. It has taken me five years to finally understand it. You can’t take one pension and not the other. It is madness. You are forced into actuarial reduction even if you take your first pension when it matures. I can’t believe there won’t be a class action eventually,
  6. diddydave

    diddydave Established commenter

    ...sorry but I'm not sure you've fully understood it yet... ;)
    You only HAVE to take both at the same time IF you take it early, i.e. before 60.
    If you take the final pension salary at 60 you can leave the career average until your NPA (67 for me).

    "...If you wish you can leave these benefits until you reach your career average Normal Pension Age and they’ll then be paid in full."
    border_walker likes this.
  7. diddydave

    diddydave Established commenter

    The 'clearly' part is up in the air at the moment as any explanation of the current situation may change due to the legal action brought by the firefighters and judges union that they won. The government is still working out whether they will appeal or what they will do if they don't.

    Teachers pensions has several pages, such as this one: https://www.teacherspensions.co.uk/.../active-members/dianne-transition-member.aspx
  8. XTrapnel

    XTrapnel New commenter


    I have about 18 years in total paid into the Teaching Pension Scheme and started before 2007 (There are some missing years).

    Do the pension people -teacherspensions.co.uk- sort out the monthly payments automaticallyetc when i retire, or do i have to go wiith some other provider like Wesleyan or someone? -I have had a 'Planning for retirement' letter sent through by NASUWT/Wesleyan the other day.

    Many thanks for any thoughts on that.
  9. FrankWolley

    FrankWolley Star commenter

    There is no need to go through a provider (like Weslyan), though if offered a free seminar etc I'd certainly attend (but don't sign anything straight away). You DO need to contact the TPS, register on line, and look at the information there. This is what I did 6 years ago, and the TPS paid (& still do) into the bank account I gave them...
    border_walker and XTrapnel like this.
  10. XTrapnel

    XTrapnel New commenter

    Hi Frank, thank you for the reply. I have registered online and have a username etc . So can you tell me if the pension automatically starts at the appropriate age-depending on when you started of course?
  11. FrankWolley

    FrankWolley Star commenter

    Please remember I retired 6 years ago! So things may have changed...But what happened for me was that the lump sum and the pension started the month after I retired (in my case this was an early retirement, with a reduced pension) and was paid the day before my birthday...which is actually pretty early in the month anyway (if it was the 31st I might have questioned this!)

    The whole process was, as far as I remember, pretty smooth - I filled in forms, and got my school to send them to the TPs (I was leaving just before the end of the summer term as I was on a fixed term contract); I kept an eye on the TPS website to see how the application was progressing, and it went exactly as promised...

    One point - do check the actual details of your service record carefully: I found one employer (another fixed term contact about 5 years previously) hadn't told the TPS I had worked for them (!) and I had to contact the school, and make sure they did it.
    XTrapnel likes this.
  12. XTrapnel

    XTrapnel New commenter

    Thanks, that's really helpful. I had pretty much forgotten all about it until I received the NASUWT letter and haven't looked at the site for ages. I am 60 in a year or so had better get organised.

    Thanks again for your replies.
  13. border_walker

    border_walker Lead commenter

    You need to apply to get the pension, its not automatic.
  14. XTrapnel

    XTrapnel New commenter

    How do you do that ?

  15. Sundaytrekker

    Sundaytrekker Star commenter

    You do it through the teachers pension website. Register for your online account if you haven’t already done so and look around. When I did it the form was online but I think you could print a paper version, too. Most people apply about three months or so before they actually retire.
  16. XTrapnel

    XTrapnel New commenter

    Thanks for your reply. Yes found it! Also a video explaining everything as well.

    Many thanks


    FrankWolley and Sundaytrekker like this.
  17. border_walker

    border_walker Lead commenter

    Concerned that you didn't already realise this.
  18. tabath

    tabath New commenter

    I'm returning to teaching after 10 years out. I'm on a transition pension thingy, is there any advantage to me not taking my Final Salary Pension at 60? Do the unions have anyone who undertands this and give advice on the best financial way to ay in extra?

  19. diddydave

    diddydave Established commenter

    With the industrial tribunal yet to make its decision with regard to the judges and firefighters and then not knowing how it will be applied to all public service pensions it's a bit of a minefield at the moment so finding anyone who really understands it could be difficult, even impossible! Most unions do have affiliations with financial organisations - mine did have with the Wesleyan, certainly worth checking with them.

    There are so many ifs and buts for your situation you will need to be careful what you believe and I'd hesitate to advise you either way but it may well depend on how long you intend to work for.

    At 60, under the old scheme, I believe you could still pay in BUT would get no enhancement for doing so - pretty pointless unless your salary in those latter years is significantly higher (v.unlikely given the pay freezes).

    If you take your pension AT 60 and are still working then there is a limit on how much you can earn without them stopping your pension. (Your pension + salary must be less than your 'salary of reference'). Though I suppose this might be an advantage as it means you have 'locked in' your pension calculation and then any new payments may be into the new scheme - should it continue or exist...

    If you don't take your pension at 60 but say 63 they will pay you those 3 years in a lump sum when you do claim it - probably leading to a larger tax bill for that year.

    Be careful about how your pension is calculated though I'm pretty sure you'll be protected through what is called the hypothetical calculation - but if that is used then any extra you have paid in would have been wasted. Your best '3-in-10' will be 10 years back from your next payment into the TPS - so only your new salary would be used!!! This is extremely unlikely to match your 'revalued' salaries from 1999-2009
    Last edited: Aug 19, 2019
    tabath likes this.
  20. tabath

    tabath New commenter

    Thanks for the reply, it really is a minefield isn't it?With regard to my Final Salary Scheme, is the final salary the salary I finish with at retirement or the highest salary I reached under the old pension? For instance I was top of the main scale when I stopped teaching so there is scope for my salary to progress quite a bit.

Share This Page