Teachers

The state operates a defined benefit scheme (see Occupational defined benefit schemes) for teachers, with an annual pension based on the value of your average salary and a tax-free lump sum on retirement. There are different rules to calculate the benefits to which you are entitled if you retire early on the grounds of ill health, and if you die, your surviving partner or family will also be entitled to benefits. Specialised pension schemes are generally more generous than other occupational pension schemes (see Occupational Pensions) when it comes to providing for their members and their members' families if they are in difficult circumstances.

For members who joined the scheme prior to 1st January 2007, your annual pension will be:

annual pension = number of years x accrual rate x average salary

from scheme in scheme 1/80

For example, you retire after thirty-five years as a teacher. Your average salary over these thirty-five years was £32,000. Your annual pension will be:

35 x 1/80 x £32,000 = £14,000 annual pension

For members who joined the scheme on or after 1st January 2007, your annual pension will be:

annual pension =   number of years   x   accrual rate x average salary
from scheme           in scheme 1/60

For example, you retire after thirty-five years as a teacher. Your average salary over these thirty-five years was £32,000. Your annual pension will be:

          35 x 1/60 x £32,000 = £18,667 annual pension

For members retiring after 31st December 2008, your average salary will be the greater of:

your final year's salary
your average salary over three of your last ten years' service, revalued in today's money

Your annual pension will be increased in line with inflation to ensure that your retirement income retains its value. The Teachers' Pension Service operates a helpline on 0845 606 6166 if you have any enquiries.

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Teachers