- You receive a guaranteed pension through the Teachers’ Pension Scheme.
- You pay into your pension – and so does your employer.
- The size of your pension is calculated by adding together all your periods of service.
- It’s a Defined Benefit Scheme, registered with HM Revenue and Customs, based on your salary and service rather than investments – so there will be no nasty surprises when you come to claim your pension.
- Your pension will be a regular source of income when you retire – but you can also take some of it as a tax-free lump sum.
- If you've a family or other dependants, your pension can give them an income after you die.
- Your pension is index-linked, and is reviewed annually.
- If you’re sick you may be entitled to ill health benefits.
- To boost your pension benefits you may be able to make extra contributions.
- You may transfer other pension benefits within one year of joining the scheme.
What else should you know about your pension?
You’ll pay reduced rate national insurance contributions because of it. Also, your pension is designed so its value is protected against rising prices. You can even buy extra pension credits to boost your benefits, or in some cases transfer pension credit over from another scheme provided you do it within a year of joining the scheme.
The Teachers' Pension Scheme is also contracted-out of the State Second Pension (S2P) as the benefits paid are better than the state would pay. And though you’re contracted out, you’ll still get the Basic State Pension on top of anything you get from the Teachers' Pension Scheme.
So your pension is designed to take care of you when you retire. That doesn’t just mean when you reach normal retirement age. If you have to stop working through ill-health you may get your pension early. And should the unthinkable happen and you die before you retire, your family may be paid your pension benefits.
You can find some useful calculators here.