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Part time working after claiming pension

Last post 30/12/11 at 15:11 by FrankoFile, 11 replies
Post started by ljr on 28/11/11 at 10:01

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  • ljr avatar
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    Posted by: ljr 28/11/2011 at 10:01
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    If I claim my pension next summer (one year early) but continue to work 2 days a week what happens to the pension deduction from my part time work? Do I stop paying any further contributions or will the pension increase when I finally stop teaching altogether?
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    Posted by: roseangel 28/11/2011 at 13:42
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    Yes, you stop paying into your pension as far as I know. Once you claim your pension it is fixed for life (Cost of living obviously).

     If you take a reduced pension (ARB) you can work as much as you like after that but if you take your full pension you are restricted as to how much you can work.
  • norcot avatar
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    Posted by: norcot 28/11/2011 at 19:53
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    I think you would have to opt out of the pension scheme by filling in a form in order to stop paying contributions. You have to pay in to the scheme for a year to be able to draw any pension from it so whether it would be worth contibuting would depend on how long you are intending to carry on teaching
  • ljr avatar
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    Posted by: ljr 28/11/2011 at 20:06
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    Many thanks - I went onto the TP website, but it wasn't very clear.
  • ColinWilson avatar
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    Posted by: ColinWilson 01/12/2011 at 21:27
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    The additional teaching will count towards a second TPS pension, independent of your main pension. Membership is  automatic so you would get an extra pension when you finish the additional teaching , unless you were daft enough to opt out.

    If the additional, work was less than 1 year you would get an annuity from TPS rather than a normal pension.

    Details can be found at

     http://www.teacherspensions.co.uk/resources/pdf/Fact%20Sheets/Returning%20To%20Work.pdf
  • Wanderer avatar
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    Posted by: Wanderer 02/12/2011 at 17:40
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    It is always worth paying in.!
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    Posted by: Wanderer 02/12/2011 at 17:46
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    You also need to make sure you have the necessary gap in employment. Can't start to work the following day after retirement date. Eventually TPS would spot the continuous payments and declare you didn't retire. They would try to claim back payments made. Could be 6 years down the line. a lot of money to pay back. This actually happened to a colleague. Retiremnet 31st august. New contract was dated 1st September, even though for only 1 days teaching  a weeek. Deemed not to have retired! Thousands claimed back. So, make sure your part time contract does not begin immediately following the retirement date. I am not sure of the actual gap needed, but believe it to be just as little as a one day gap. Your HR officer can advise.
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    Posted by: norcot 02/12/2011 at 18:07
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    That's interesting about the Short Service Annuity. Does anyone know if it works out to be more than a refund of pension contibutions? I am planning to work one and a half terms after retirement (and a day's break in service). So would it be worth staying in the Pension scheme for that period?
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    Posted by: Imfreetes 03/12/2011 at 20:06
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    norcot:
    ?........I am planning to work one and a half terms after retirement (and a day's break in service). So would it be worth staying in the Pension scheme for that period?
    Remember to check with your LEA about the required gap in service. TP require one day gap but my LEA required a months gap in service before I could be re registered for supply. Don't know if it is the same for retirement.
  • ColinWilson avatar
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    Posted by: ColinWilson 04/12/2011 at 10:28
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    norcot:
    Does anyone know if it works out to be more than a refund of pension contibutions?

    If you are re-employed after retirement and you complete less than a year’s pensionable employment, a repayment is no longer payable. You will now receive a short service annuity, which will be added to your existing pension.

    norcot:
    So would it be worth staying in the Pension scheme for that period?

    It is unclear what the size of the annuity would be, however I would certainly continue in the scheme myself even for a short period of time. I would hope that the employers contribution would make it worth while.

    If you opt out and then go on to work another one and a half terms you would miss the chance of an extra years normal pension.
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