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The staffroom

Whether you're a permanent teacher, supply teacher or student teacher, you'll find others in the same situation on our Staffroom forum.

would you turn down a job if it didn't pay into Teacher's Pension

4 replies

tinypop4 · 17/03/2017 08:16

Been offered a very nice part time job in asmall, non-selective independent school. Excited to try something different and was looking forward to it, but I've learnt that they don't pay into teacher's pensions, instead using their own pension scheme.
I have 5 years of state payments into teacher's pension scheme so far. How important is this? I don't want to stitch myself up and I do have a state option for work too.

OP posts:
CaptainHarville · 18/03/2017 08:28

Is the pension scheme they are offering defined benefit? Or defined contribution? The teachers pension scheme is defined benefit which are much better schemes. The way to compare them is to look at how much you would need to pay in monthly to a defined contribution scheme to get the equivalent benefit. To be honest its usually a lot. If you imagine it as part of your pay then you start to see why the teachers pension scheme is still considered generous.

The defined benefit scheme tells you what your pension will be whereas under defined contributions you get a pot of money and invest it or buy an annuity to produce an income. Because investments aren't guaranteed you can't be sure what you will get.

To give a personal example I am guaranteed a pension of £5000
DH in his defined contribution pension has a pot of £60k. To get a similar income of £5000 he would need his pot to be nearly double what it is.

tinypop4 · 18/03/2017 13:07

Thank Captain appreciate your help. I've just asked for details on the pension scheme, but on the JD it says it is a 'Group Save Contributory Pension Scheme' - does that mean anything to you?

OP posts:
KP86 · 18/03/2017 13:12

Are you able to opt out of your new scheme and pay using your after tax salary into the current one?

KP86 · 18/03/2017 13:13

Ie. You have a private arrangement where you transfer money via direct debit or BACS to the original pension company

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