Are you a retired teacher who has taken up a role within the National Tutoring Programme? This is the programme that hopes to help students catch up after the lockdown. If you have chosen to return to employment, you may have concerns about your pension.
The impact on your pension
According to the Teachers’ Pension Scheme’s website, if you do take a role in this scheme, it is unlikely you will have your teacher’s pension abated. Employment as a tutor or academic mentor would not be seen as eligible employment. In other words, abatement is not applied where another job is undertaken that isn’t pensionable in the Teachers’ Pension Scheme.
The question, therefore, becomes: what is pensionable service?
- If your tutoring role involves teaching, even on a 1-2-1 basis, then this will be considered as re-employment. However, only if you are employed by a participating organisation within the Teachers’ Pension Scheme.
- If you are working through an agency, then this is not pensionable work.
- The type of work will dictate whether it is pensionable within the scheme or not. If your work in the programme is not considered teaching and more akin to a teaching assistant. It is not pensionable under the Teacher’s Pension Scheme
There are other more granular considerations. Particular employment will impact on your Final Salary arrangement, such as full or part-time work. However, any overtime will impact on your Career Average arrangement and not the Final Salary portion of your pension.
Suppose you are re-employed and you are retired with the Final Salary arrangement. In that case, there may be ramifications, and you will need to be considered for abatement.
As you can tell, re-employment as part of this programme is a complicated affair. It may or may not be worth you undertaking such work considering the impacts on your pension. You are going to need guidance from an independent financial advisor.
The content in this article was correct on 16th October 2020. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on your Teachers’ Pension Scheme. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.