About the Scheme
The TPS is a contributory scheme administered by Teachers’ Pensions (TP) on behalf of the Department for Education (DfE). It is a defined benefit ‘final salary’ scheme and is one of the most important and valuable benefits available to teachers. The TPS not only provides you with a lump sum and regular income after you retire but also provides your family or other dependants with financial protection after you die.
The TPS is contracted-out of the State Second Pension (S2P) on a Reference Scheme Test basis that means the TPS guarantees to pay benefits which are at least as high as those the state would pay. Although you will be contracted out of S2P you will receive the Basic State Pension in addition to your teacher’s pension.
The TPS is a statutory scheme subject to the Teachers’ Pensions Regulations 1997 (as amended).
- Your employer makes a substantial contribution towards the cost of your pension.
- The TPS not only provides you with a regular income after you retire, but also provides your family or other dependants with financial protection after you die.
- All teachers and lecturers, both full-time and part-time, are automatically members of the scheme unless they elect to opt out.
- If you become too ill to work, you may receive your pension early.
- You can increase your pension credit by buying extra pension. You may be able to transfer in pension credit from another scheme.
- We will pay a lump sum if you die before you retire and we may pay children’s and dependants’ pensions.
- You can choose to have part of your pension paid as a lump sum if you joined the scheme on or after 1 January 2007.
- If you were a member before 1 January 2007, you will automatically receive a lump sum.
- Your pension is index-linked to protect its value against the effects of inflation