All teachers that work in public schools have the opportunity to be a member of the teachers pension and everyone should join.
Here is the main reason why you should join and some does and don’ts once you are a member even if you leave in the post in the future and pursue a different career.
Teacher pensions are part of what they call a Final Salary scheme and it is almost impossible to beat this whatever anyone tells you and for this reason alone you should join it as soon as possible and never leave it of transfer your benefits away from it now or in the future even if you change jobs.
A Final Salary pension is exactly that in that it is based on your Final Salary when you retire divided by how many years you have been a member. So with this type of pension there is no risk to your pension fluctuating with the stock market.
For people who leave the profession this still applies and the pension will be based on what your grade salary is when you come to retirement and not what it is when you left as many people think.
Other factors that you should take into account are paying AVCs or Additional Voluntary Contributions to give them their full name for a couple of reasons.
Firstly they will enhance the pension you get in retirement and secondly they are cheaper than the alternative which is FSAVCs or Free Standing Additional Voluntary Contributions as these have higher charges attached to them which can and does have an impact on the growth.
So if brief
Join the scheme pay AVCs to enhance your pension if you possibly can and never transfer it or be advised by anyone to do anything different.
For Teachers that have been encouraged to transfer their pension in the past you can almost guarantee that this advice was wrong and you will be entitled to compensation as a result which will put you back into a position you would have been had the advice never taken place.
Likewise if you have been advised to take our FSAVCs instead of AVCs then this will almost be guaranteed to be inappropriate also and compensation will be awarded although it is slightly different to that of the main pension in that it is the difference in charges that is awarded instead of how the fund has performed. This can still lead to substantial compensation and you should get it checked if you have been advised to do this in the past.
There is no limit of the amount of compensation that can be awarded unless your case goes to the Financial Ombudsman who has a limit of £150,000 which is a substantial sum for anyone to be added to their pension fund or paid out as a lump sum.
If you are a teacher of have been one in the past and any of this applies to you then use the services of a claims management company to look into this in more detail on your behalf as most of them work on a no win no fee basis.
Finally if you would like further information on mis sold teachers pension then visit https://mis-soldpension.com where you will get a lot of further information and submit your concerns to them if you decide to get your pension checked.