Teach Primary Issue 19.6

in my tax-free lump sum and an extra £2,500 a year on my pension. Assuming I take my pension at 60, and live to an average age, that would have seen me gain £70,000 over what I can expect now. The rule is known as the ‘hypothetical calculation’. For more on that see tinyurl.com/tp-Hcalc I am not alone, and I have most certainly not lost as much as many others. I have seen ex-heads who have stepped back into the classroom after years in the top job getting their pensions slashed because they didn’t have a break to protect their final salary pension; including one head whose final salary has dropped from the equivalent of £74,000 to £50,000. If they had taken a break from the pension scheme at the right time, then their pension would be around 50 per cent higher than it is going to be as a result. Their lump sum has dropped from £79k to £53k and they will be getting a pension that is £8,500 less a year as well. Angry losers As a head of year, I was often involved with angry young people; I have no problem with anger – only with what it leads to. If it leads to something destructive, I have no tolerance for that – anger when you see something that is wrong is fine, but you have to do something constructive with that energy. So, yes, I got angry at losing out; but I also realised that I could do something positive. That’s why I have put years into learning about the rules of the scheme and how they can trip the unwary, but also how they can help maximise the benefits. Getting to know the rules can help you determine the best course of action, but remember to check with your financial adviser before making any changes – the ideas in this article would work for me, but it’s always best to be sure! David Fountain is not a financial adviser, but a teacher with almost 30 years of experience. dfountain.co.uk tinyurl.com/tp-TPSsupport 23.68% – the employer contribution to a Teacher’s Pension Scheme (TPS) pot. 7.4% – the starting employee contribution to a TPS pot. This rises to a maximum of 11.7% , depending on your earnings. You can also make voluntary additional contributions to the pot. 1/57th – the amount teachers will add to a TPS pension pot, depending on the amount of earnings each year. See the index figures at tinyurl. com/tp-EdHubPension 2015 – the year the government introduced reforms to public service pension schemes, including the Teachers’ Pension Scheme, which meant some members receiving Transitional Protection remained in the final salary scheme, while others entered the career average scheme. These changes have since been deemed discriminatory on age grounds. Speak to your financial adviser or pension rep to see how this affects you. All numbers are correct at the time of writing in July 2025. Source: https://educationhub.blog.gov. uk/2022/11/teachers-pensions-what- you-need-to-know/ Please note this column is meant as a summary only, and is not intended as professional financial advice or information. Pensions in numbers L E ADERSH I P www.teachwire.net | 51 “Yes, I got angry at losing out, but I also realised that I could do something positive to try and help others out”