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Phased retirement
an actuarially reduced pension, lowered to take account of the fact that you can expect to claim your pension for longer. This is 60 for most teachers, but 65 for entrants to the pension scheme on or after 1 January 2007.
If you’re at or over your scheme’s NPA your pension won’t be reduced, but you have to be mindful of abatement (see box below).
Must my employer agree?
Any change of hours must be agreed with your employer. This also applies where a teacher steps down to a different role. The employer has to provide confirmation of the salary reduction on your application form.
Do I build up more pension afterwards?
If you take phased retirement you’ll continue to build up service in the Teachers’ Pension Scheme unless you opt out. This is added to your untaken service for future retirement benefit calculations.
How do I apply?
There is a form on the Teachers’ Pensions website (see below). Teachers are advised to read the form and accompanying notes. A phased retirement application must be made within three months of starting work in a reduced capacity.
Phased retirement is still relatively new, but approaching retirement gradually is not. We asked a few members how they approached their retirement.
The advantages of retiring slowly were of course financial and that I could carry on doing something I loved. I think if I had stopped suddenly, it would have been quite a shock. I’m sure lots of people want to stop completely but I’m glad I did it as I did.
Since I stopped being paid to teach I have undertaken a voluntary hour, after school, at a school where I am a governor. I think I will go on with this during my current term as governor, but may want to stop then.
Liz Cooke
I am 71 and still doing a little work as an advisory teacher for behaviour support. When I was 63, I went down to three days a week for five years, but without management responsibilities.
Why have I continued to work so long? Many people have asked me this and it is not that I have nothing else in my life. I am active in the University of the Third Age, belong to a book group, keep in touch with the NUT retired teachers, do all the usual exercise classes for someone of my age and have become a grandmother, so my days are full. I keep working because I find it rewarding in many different ways.
Name and address withheld
At 57, I returned to teaching part time at Gayhurst School in Hackney, London, after working as a trade union official, and spent the rest of my week doing freelance translation work. The two days’ work gave me some security. I enjoyed this because I could work but not have such great responsibility.
Irena Fleck
What is abatement?
The abatement rule caps the maximum pension that can be received by teachers who teach while receiving their teachers’ pension. The rule is complex, but effectively your earnings from teaching plus pension cannot exceed the salary you earned before retirement, indexed for inflation. If they do, the pension is capped.
Abatement does not apply to teachers who take phased retirement before their normal pension age (currently 60 in most cases), because actuarially reduced pensions are not subject to abatement.
Abatement can apply where phased retirement is taken after normal pension age. If the Government wants to encourage teachers to take phased retirement it seems nonsensical that they could cut their pension if it is taken after age 60.
Teachers who are unsure whether they will be affected should contact their NUT regional office. You can find contact details at
www.teachers.org.uk/contactus
www.teacherspensions.co.uk
• Dr Nick Kirby is NUT Pensions Officer.
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