There are points throughout your career as a teacher that may impact your pension. It is worth understanding what these events are so you can seek advice at these times. It may be that there is no impact, but it is important to keep on top of your pension if you are to have a comfortable retirement.
At the start of your career or when you move schools, your employer will automatically enrol you in the Teachers’ Pension Scheme if you are aged between 16 and 75. There are some exceptions to this auto-enrolment if your independent school has opted out of the Scheme. Your employer is expected to have an alternative pension, and you must ask for details.
It may be that you choose to reduce your hours during your career. Moving from full-time to part-time will impact how much you contribute but will not impact the number of pensionable years of service you accrue. You will accrue years of pensionable service if you work enough hours to contribute to your pension.
For those that started before the 1st January 2007 in a part-time post, you will need to make an election for this to be pensionable, or the employer has advised of a contractual change. In this event, it is a good idea to seek advice from an independent adviser.
In your career average arrangement, all employments can be pensionable if they add up to more than full-time. Your part-time service will automatically become pensionable if you have transitioned from the final salary arrangement to the career average scheme.
Break in service
You become a deferred member if you retain benefits in the pension scheme but are no longer paying contributions. our pension will still accrue, though it will be at a lower rate than if you are an active member. If your break in service is more than five years after April 2015 and you return to teaching, you will be auto-enrolled in the career average scheme when you return to pensionable service.
The details given here are high-level and do not reflect the complexity of what might or might not happen to your pension. They show you when you should be concerned about your pension, as you make decisions about your working life. Before making these decisions, you may wish to seek advice from an independent financial adviser.
The content in this article was correct on July 31st, 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. The value of your investment can fall as well as rise and is not guaranteed.