Simply put, one teacher’s pension is a way for users, ones employer, as well as the government to help you save for the future. You contribute to the cost of your pension every time you get paid. Your employer contributes to the cost, and the government also contributes through tax breaks because pension contributions are tax-free.
You are contractually enrolled in the Teachers’ Pension Scheme as a member from day one.
One of the most important benefits available to new teachers is your pension . So, spend a few minutes online and learn everything you need to know about your pension right now. We have other areas where you can learn more about the Scheme, such as retirement planning. This one, on the other hand, has the fundamentals, or as we prefer to call them, the essentials.
Go ahead and read it. Your pension is well worth it.
The fundamentals of your pension
1. The Teachers’ Pension Scheme provides you with a guaranteed pension.
2. Both you and your employer contribute to your pension.
3. It is a Company Pension Scheme, registered to HM Revenue and Customs, and is based on ones salary as well as service rather than investments, so there will be no unpleasant surprises when it comes time to claim your pension.
4. When you retire, your pension will be a regular source of income, but you can also take some of it as a tax-free lump sum.
5. You will join the career average arrangement and receive benefits based on 1/57th of your pensionable salary, including overtime, each year.
Eligibility for benefits
To be eligible for benefits, you must have completed a minimum of two years of qualifying service. People are sometimes confused about the difference between qualifying service and actual service that counts toward their benefits. What’s the distinction? If you work part-time, the entire period, including the days you don’t work, counts toward your qualifying service. Your benefits, however, are determined by your pensionable earnings.
Which Teachers’ Pension Schemes are applicable to me?
The sort of Teachers’ Pension Scheme you have and how much you will receive in retirement are determined by since you joined the scheme and how close to retirement you were when changes to the scheme were implemented in 2015.
These dates will determine whether your eventual pension will be based on your final salary or your career earnings average (the latter of which is less generous).
Some people who were previously in the final salary scheme have been transferred to the career average arrangement.
Because different arrangements were put in place for those closest to retirement – known as your ‘normal pension age’ – not all members were moved to the career average scheme.
When will you be able to collect your teachers’ pension?
The age at which you can access your pension, known as your ‘normal pension age,’ is determined by the arrangement or arrangements that cover you.
Members who persist throughout the final salary scheme will also have a normal pension age of 60 as well as 65, depending on that when they began pensionable service:
• If users served prior to January 1, 2007, thier final salary normal pension age would be 60.
• This only applies if you haven’t repaid your contributions, transferred out, or taken a five-year break.
• The normal pension age for those trying to enter pensionable provider after January 1, 2007, will be 65.
Members in the final salary and career average schemes who are tapered or transitioning will have more than one pension age.
• The pension age for your final salary benefits is as previously stated.
• For ones career average advantages, your pension age has been either your pension scheme age or 65, whichever is later.
New members who only participate throughout the career average scheme get a pension age from either your state pension age as well as 65, whichever comes first.
What happens to my Teachers’ Pension if I take a leave of absence from my job?
It depends on when the break occurred and which scheme you were covered by.
If you were a final salary member with a normal pension age of 60 and took a five-year break in service with such a return date on or after January 1, 2007, your pension age continues to remain at 60 for the service prior to the break.
After the break, the service is 65. If you are a protected or tapered member with a five-year break in service, you will be placed in the career average arrangement when you return to pensionable service. For more details Contact us.