Part Time “Days Out” Checker

After fielding a number of queries regarding the days out and how they are recorded for part-time teachers I created this sheet to allow teachers to check their figures:

The way that part time work is recorded is not very intuitive and I sympathise with them. After all if you work 4 days a week then in a month you are likely to miss working on 4, or at the most 5, days in that month…so how come the statement shows 6 “days out”…there aren’t that many “Mondays” in ANY month!

To understand how part time service is recorded requires a different approach than just looking at the actual days you work in a week, we need to go much wider than that.

A full time teacher may work 5 days a week and they do that for 39 weeks in a year, that is 195 days, but their service record for a full academic year is recorded as all 365 days in the year (even in a leap year!)

In order for a part time worker to be credited with the correct proportion of the pension, i.e. 80% for one who works 4 days a week, that proportion is applied to each pay period. In a full academic year then a 0.8 part time teacher should get 0.8 x 365 days credited to their service record.

0.8 x 365 = 292 days. This is recorded by having the rest of the year, 73 days, labelled as “days out”.

Transfer Out Calculator

If you have been in the TPS for LESS than 2 years you can transfer it to a private pension scheme. This calculator works out the transfer value (and it’s a lot more than getting a refund of your contributions!)

Link to Sheet

Transfers IN

You have 12 months from starting, or re-entering, pensionable service to transfer other pensions in to the TPS. But is it worth it?

The value depends on two age;

  • Your age now
  • Your state pension age

This sheet will let you work out how much career average pension would be added if your transferred a lump sum from another private (defined contribution) scheme.

Link to sheet

Short Service Annuity

With the call going out to retired teachers to return to the classroom many have concerns about whether contributing to the pension scheme will give them value for money or not – particularly if they are going to be teaching for less than 1 year.

If they teach for more than a year then the career average scheme, that anyone who has already started taking their pension would be in on their return to teaching, normally pays back their contributions in under 10 years.

The pay back period for the short service annuity for anyone under 75 exceeds 13. So definitely not as good value as the actual pension.

Final Salary (3-in-10) Future

One method (method B) used to calculate your final salary looks at your last 10 years salaries.

These are revalued using inflation, which often makes them worth more than you are currently earning!

When teachers have periods of pay freezes and below inflation pay rises this method often produces a better final salary pension calculation.

This spreadsheet will let you enter your last 10 year’s salary figures and to check what is going to happen over the next few months and years to your Final Salary Pension. If it is going to drop then you should seek advice on whether opting out would be appropriate.

Link to sheet

Career Average Planner

This spreadsheet looks at the kind of pension you can expect from the Career Average Scheme that everyone will be in from April 2022.

You enter how many years you are on each of the pay scales and it will, in today’s money, give you an estimate of the kind of pension you can expect at various ages – at 67 in full and also 62 and 57 if you were to take early retirement.

It also provides figures of what that service profile would have provided in the Final Salary schemes.

Link to sheet

SIPP/AVC before Pension

A budget planner that looks at ‘front-running’ a SIPP, or AVC, before taking your pension.

By using the tax-relief and your personal allowance this sheet can help you see what the effects are on your finances of taking the Teacher’s pension later than 55 and instead using a private pension to plug the gap between 55 and when you are ready to take it.

Link to sheet

Proudly powered by WordPress | Theme: Baskerville 2 by Anders Noren.

Up ↑