Changes to the Teachers’ Pension Scheme (2007)
Important changes to teachers' pensions were agreed in 2006 following months of detailed negotiations between Government, employers, NASUWT and other teacher unions.
The agreement on the Teachers' Pension Scheme (TPS) contains a number of changes and some significant improvements for both new and existing members of the scheme from 1 January 2007 including options for phased retirement, increased pension saving and how much tax-free lump sum teachers can take upon their retirement.
The most important achievement for existing scheme members was the retention of the ‘normal pension age’ of 60 (i.e. the age at which a teacher's pension can be drawn without any actuarial reduction for 'early' retirement). New entrants to the scheme from 1 January 2007 have a normal pension age of 65, but will benefit from an increase in the accrual rate at which their pension builds up.
The NASUWT welcomed the new pensions deal for teachers which it believes will provide a fair and balanced solution to the challenges of meeting future costs while maintaining quality provision for both existing and future teachers.
Chris Keates, General Secretary of NASUWT, said:
"Taking into account the fact that when negotiations began the position looked extremely bleak, an excellent deal has been reached.
"The most important issue for existing scheme members was the retention of retirement age at 60 and this has been secured.”
For further details of the scheme please contact your Local Secretary, National Executive Member or the Wales National Centre.
Members are advised to seek advice from a financial adviser based on their individual circumstances when deciding what is in their best interests.
Wesleyan For Teachers are an 'NASUWT Approved' company that have Financial Consultants who have the experience and knowledge to understand the detailed rules and regulations of the Teachers' Pension Scheme.
Further Pensions Information
Further advice on specific pension issues is available by clicking the appropriate link in the Further Pensions Information menu on the right hand side of this page.
Members needing further information or assistance should contact the Wales National Centre.