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

There will be a small increase in both employer and employee contributions.  (6.4 percent employee contribution and 14.1 percent employer contribution).

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 £5,000 additional pension benefits.

Death in service benefits will increase from 2 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 Chantel at the insight4schools team on 01603 628080.  Allow us to advise and help you and your teaching staff to secure a better financial future.