There are sizeable benefits of being in the Teachers’ Pension Scheme, and you might be wondering what you have to do to get started. Here we give you a simple guide to the beginning of your journey with the pension scheme.
When you start work in a state and most independent schools, your employer will automatically enrol you in the Teachers’ Pension Scheme. It is the role of your new school to set you up on the scheme and manage the administration of this.
If you work in an independent school that has opted out of the scheme, you will not be automatically enrolled in the Teachers’ Pension Scheme. The school will still be expected to provide you with a work-based pension. You may wish to speak with an independent financial advisor to understand how it impacts your individual situation.
Qualifying for benefits
To qualify for the benefits explored previously, you must complete two years of qualifying service. There is a difference between actual service and qualifying service for those who work part-time. Your whole period of teaching counts towards these two years, including the days you don’t work. Be aware that your benefits are calculated on the pensionable earnings you receive.
Normal Pension Age
You will see the term Normal Pension Age or NPA whenever you read about your pension. This is the age you receive your state pension or 65, depending on which is a later date. It is the age when you can claim your full benefits from the scheme. You can ask for early retirement from the age of 55, which will change to 57 in 2028, though your benefits will be reduced to correlate with the reduced time in teaching.
You can learn more about your pension by visiting the Teachers’ Pension Scheme website.
The content in this article was correct on June 30th 2022. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.