Valuable Insight for Teachers

From 1 January 2007 a number of changes came into force that affected the Teachers Pension Scheme (TPS). Outlined below is a brief synopsis of the main changes affecting the Teachers Pension Scheme:

If you were an existing teacher at that time already contracted into the TPS, all of your current entitlement remains protected. This means that you have the right to retire at 60 with no actuarial reductions of your pension benefits. For all new entrants to teaching from 1 January 2007, the normal retirement age will increase to 65.

There has been a small increase in both employer and employee contributions (now 6.4% employee contribution and 14.1% employer contribution in total).

Unmarried partners will receive the same benefits as married and civil partners (subject to criteria test).

From the age of 55, there will be increased opportunities for individuals to phase in retirement without incurring the pension penalties currently in place.

There will be greater pension protection for individuals who have experienced a reduction in salary.

There will be greater scope to divide pensions between tax-free lump sums and continuing index-linked pensions.

You will be given the opportunity to purchase up to a maximum of £5,200 per annum additional pension benefits.

Death in service benefits will increase to 3 times salary.

If you would like an overview into the full details of any of the points raised above, or would like an insight into your pension – contact Craig at the insight4schools team on 01604 414814.

Allow us to advise and help you and your teaching staff to secure a better financial future.

This page is for information purposes and should not be viewed as advice to make changes to any existing arrangements.