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working while in receipt of teacher's pension

Discussion in 'Retirement' started by tonymars, Jan 22, 2020.

  1. tonymars

    tonymars Established commenter

    A friend, who is about to finally start claiming her small teachers pension, seems to think that she can no longer work as a teacher in any capacity when she claims this pension.

    I'm a couple of years off this myself, but surely this cannot be right.

    Does this mean, when in receipt of a teacher's pension you cannot:

    do any work at all:
    do any work as a full time (permanent?) teacher
    do any work as a supply teacher
    or a TA
    or a tutor

    Also is there a similar restriction after you start claiming your state pension? If there is, this seems to run contrary to the government's aim of encouraging us all to work until we die so we will never have to claim our state pensions.

    I know the obvious answer is to go the FAQ section of the TPS website, but I am having problems accessing this at the moment. Also, I would be very interested to know how this works, or could work, in practise.
  2. Sundaytrekker

    Sundaytrekker Star commenter

    That only applies if you are awarded an enhancement for ill health pension.
    If you claim an actuarily reduced pension i.e. usually before 60, then you can earn whatever you want including in teaching provided there is a gap of at least a day before you start a new teaching contract.

    if you claim at the normal teaching pension age, then you can earn what you like in a different type of employment or you can teach and earn up to the amount that is your final salary of reference less your pension. If you exceed that, then your pension can be abated (stopped).

    All income is added together for tax purposes.
    border_walker and eljefeb90 like this.
  3. tonymars

    tonymars Established commenter

    Thanks for replying Sundaytrekker, but I'm not clear exactly what you mean.

    What "only applies if you are awarded an enhancement..."?

    My friend is now 65. She could have, but didn't claim her teacher's pension 5 years ago.

    She last worked in teaching in the 90s, last salary 23K.

    My understanding, from what you've said, is that when she claims her teacher pension, say 3K p.a. she can get paid for ANY sort of teaching, including TA and supply, up to 22 -3 = 19K p.a.

    Have I understood, please, or have I got it wrong? Maths was never my strong point.
  4. catmother

    catmother Star commenter

    What is she waiting for?
    In that case,she's hardly likely to go back to teaching now.
    border_walker and harsh-but-fair like this.
  5. diddydave

    diddydave Established commenter

    I may be wrong on this but she could lose a lot through tax as, I think, they will pay her the 5-years worth of pension that she has not claimed yet as one lump sum...which is likely to take her into the higher tax bracket!

    As for her potential earning. The £23k salary from the 90s would be brought up to today's figures by adjusting for inflation...taking it as from 1999 that is 20 years worth of inflation and would take it to about £38k.

    But otherwise your maths is correct, she could earn £38k - £3k = £35k.
  6. Sundaytrekker

    Sundaytrekker Star commenter

    Diddydave has explained it well. My comment about the enhanced I’ll health pension only applies if someone has left teaching early through I’ll health and is not well enough to return. They can get a slightly higher pension but cannot be employed again (or they might lose it). It doesn’t sound as though this is the case with your friend and they are past normal pension age so the above calculations stand. If she is currently teaching and wants to carry on there might be a complication around not being able to claim unless her contract finishes or she opts out of the TPS.

    TA work is not part of the TPS so that can carry on, I think.
  7. tonymars

    tonymars Established commenter

    Why did she wait to claim her teacher's pension? Well, I don't rightly know. But she's now seriously looked at her predicted income in "retirement" and reckoned she needs something to supplement this. As she has worked as a teacher, income from this is an option.
  8. Sundaytrekker

    Sundaytrekker Star commenter

    Predictive text....... ill...... not I’ll.
  9. catmother

    catmother Star commenter

    If she's 65,she should be getting her state pension at 66?

    If she wants to go back to teaching after not teaching since the 90s,good luck to her!
    border_walker likes this.
  10. Piranha

    Piranha Star commenter

    Sorry, I don't quite understand this. You can claim your state pension and carry on working if you want.
    Jesmond12 and catmother like this.
  11. tonymars

    tonymars Established commenter

    "If she's 65,she should be getting her state pension at 66?"
    Yes, apparently, she is only eligible at 66.
    She certainly doesn't want to go back to teaching full time, but she is casting around for other, more flexible, sources of income, such as supply teaching, private tutoring or even TA work.

    diddydave. Yes, she has now apparently received the five years unpaid pension as a lump sum, tax paid, I think at source.
    You also seem to indicate that, after she starts receiving her teacher's pension she can still do any sort of paid work, including teaching. She is adamant this is not so, although it doesn't make sense to me.

    Piranha. It's simple. Being able to carry on working after you start claiming your state pension certainly makes sense, and it was what I used to think. now, However, due to the avalanche of lies, disinformation, the final abandonment of any pretence that the government has the best wishes of the people at heart, I know longer know what to believe.
  12. 50sman

    50sman Lead commenter

    If she retired at 60 she will have a salary of reference. If she earns above this in total with her pension her pension will be stopped but ONLYif she is teaching.

    if she has any other kind of job from being a shelf stacker to Secretary General of the United Nations she can earn as much as she likes.

    get your friend to ring TP who will confirm this!
    border_walker and wayside34 like this.
  13. catmother

    catmother Star commenter

    I've no idea what you mean! You seem angry about something but no idea what.

    As for your friend's case,you said she was about to claim her teaching pension at age 65 but then,you said she got the money due from the time she was 60 (so she has now claimed her teaching pension?). If she's 65,she will get her state pension next year,so why would she need to go back to a job she has not done since the 90s?
  14. emerald52

    emerald52 Star commenter

    I claimed my teachers pension and carried on teaching but I took ARB one day before 60. Claiming TP after 60 means you are not allowed to earn more from teaching than the salary of reference that your pension is based on. If more they deduct money from your pension.
  15. diddydave

    diddydave Established commenter

    Yes, the teacher's pension only has restrictions on how MUCH she can earn from TEACHING.
    The restriction is the 'salary of reference' which, based on the figures you gave us, will be around £38k.
    If her pension + salary from teaching exceeds that figure her pension will be abated - I think this just means suspended until her income falls below the figure again.

    She could earn any amount from any other job so long as it isn't one that can join the TPS.
    border_walker and emerald52 like this.
  16. Puppa2014

    Puppa2014 New commenter

  17. Puppa2014

    Puppa2014 New commenter

    I have a contract until the end of August. I applied for pension as I will be 60 in June. I was told at TA that I need a t least one day break in my contact in order to get my pension. Can the school make changes in my contract? Or should I leave the school on my retirement day? Many thanks,
  18. diddydave

    diddydave Established commenter

    In order to get your pension you need to be out of service and so you will need the agreement of your school. You can, if they agree, pick a day to terminate the contract and then two days later start a new contract. You will need to organise that on the day between contracts to get your pension.

    If you are still working then you could well have problems with earning too much if you wait until you ARE 60. If your wage and pension come to more than the 'final salary' wage then the pension will be abated. You can overcome this by taking the pension 1 month early - there are no limits if you 'retire' before 60, so go in May rather than June - but again this all depends on your school being willing to terminate your contract then.

    One bargaining point you have is to consider whether it is worth going back into the Pension Scheme on your return - if not you could point out to the school that they will save the 23.6% employer contribution on your salaries from June to August if they agree to this.

    Another point is to look at your pension history...if you've had no breaks in service in the last 10 years and have been on roughly the same pay scale for that length of time it may actually not be worth staying in the scheme for these last few months.
  19. AlwaysAdaptable

    AlwaysAdaptable New commenter

    I have been reading this thread with interest. Leaving at the end of this year.I will be a year 60. I have 3 pensions. I will have three pensions. One from TP, and two other from office jobs. I was a secretary. My 3 pensions will total £20000. I was planning to do two days supply. On TP site I discovered that I can earn upto £42000.00. Does this only apply to TP?
  20. wayside34

    wayside34 New commenter

    AlwaysAdaptable,You can call the TP and get your 'point of reference' the amount you can earn without abatement being applied to 'only' your Teachers pension. The other 'non' Teachers pension are separate from your teachers pension. I retired at 60 took my TP got my point of reference but causes no concern I do very little supply 1 day a month if that suits me fine hope this helps
    AlwaysAdaptable likes this.

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