ATL

Pensions round-up

Whether you've just started your career or are just finishing, now is a good time for everyone to get themselves up to speed with their pension arrangements. Pensions policy adviser Usman Gbajabiamila explains

Wherever you are in your teaching career there are many things to be aware of in the world of pensions.

Pay slips
Please remember to keep all your pay slips; you never know when you might need to refer back to them. Pay slips are extremely important if you have missing pensionable service and need to rebuild your pensionable record.

Access to pension benefits
The pension benefits of a member of the Teachers' Pension Scheme (TPS) with a normal retirement age of 60 becomes automatically payable as soon as they reach 60. A teacher/ lecturer must apply for their pension as soon as there is a break in their pensionable service after age 60. Difficulties may occur when a teacher/ lecturer, having turned 60, has a break in service but doesn't apply for their pension and returns to teaching. Further employment following a break after age 60 could lead to a teacher/ lecturer's pension being abated. Please see below.

Returning to teaching after retirement
From 1 January 2007, all employment that falls within the TPS is automatically pensionable, including service accrued after retirement. You will need to complete a further year of qualifying service to accrue further benefits.
If you do not want your service after retirement to be pensionable you will need to complete an opt-out form.
If one year of service is not completed you can ask for a refund of your contributions.

If you return to teaching after retirement, you must inform Teachers' Pensions and complete a certificate of re-employment after retirement. This is especially important if you have retired after age 60 or if you received premature retirement. You will need to complete this form at the start of each tax year you continue to work after retiring. A further certificate must also be completed when your salary increases. You must complete a certificate of re-employment because your earnings after retirement may affect your pension from the TPS.

You are subject to an earnings limit if you return to teaching after retirement on age or premature grounds. If you earn more than your limit, your pension from the TPS will be abated. You can find out what your earnings limit is for each tax year by contacting Teachers' Pensions.

NB: It is your responsibility to inform Teachers' Pensions that you have returned to work by remitting an accurate certificate of re-employment. It is also your responsibility to ensure that you do not earn more than your earnings limit. Failure to act may affect your pension and could mean that you are liable to repay any overpayment of pension benefits.

Death benefits
Payment of survivors' benefits in the TPS are not affected if a teacher opts to commute part of their pension for an additional lump sum or if a teacher who is terminally ill decides to commute their entire pension at retirement.

Changes to the TPS
There are currently no plans to change the TPS. Recently there have been calls in the media, private businesses and certain political parties for a review of public-sector pensions, but the current Labour government has declared that there are no plans for a review to take place. ATL, with the TUC, are campaigning to make sure that the TPS and other public-sector pensions retain their current level of benefits.

2010 pensions increase
Teachers' pensions are increased each April by the previous September's retail price index (RPI). This September's RPI figure was -1.4 per cent. A negative September RPI figure is unprecedented.
It has been confirmed that Teachers' Pensions will not reduce benefits in April 2010 as a result. ATL will issue more information in the event of developments.

Further information
For further information on the TPS, please telephone ATL legal and member services pensions team on 020 7782 1600 or visit the pension scheme web page.