In accordance with the terms and conditions of the Teachers' Pension Scheme, an employee who is aged 55 or over has the right to request Phased Retirement.
This option is aimed at assisting employees in easing themselves into retirement and allows employees to continue working whilst receiving their pension benefits subject to the criteria detailed below.
Members of the scheme can access up to 75% of their pension benefits from age 55 without the requirement for the individual to retire, providing they reduce their salary by at least 20% for a minimum of 12 months.
For all members up to their Normal Pensionable Age (NPA), there will be an actuarial adjustment (reduction) to the pension benefits they take and this will be for life. Teachers must assess their own pension benefits using the calculator available on the teachers' pensions website
For protected members or tapered members still in the final salary scheme, maximum of 75% of benefits can be drawn overall on 2 separate occasions. For example they could reduce their salary by 20% initially and then by a further, percentage at a later date, up to a maximum of 80%.
The employee’s contributable salary must reduce by 20% for a minimum of 12 months. If the salary goes above the 20% reduction in the first 12 months after phased retirement, the application will be void and future pension payments will be suspended, There may also be an unauthorised payment charge from HM Revenue and Customs of 40% of the lump sum received.
Applications for phased retirement are conditional on the employer’s consent (the Chair of the Governing Body, if delegated to him/her) and Head of EPS for HCC maintained school based staff (i.e. Community, Trust, Foundation and Voluntary Aided schools). Academy schools need to liaise directly with Teachers Pensions if they wish to allow the phased retirement.
Employees who are interested in flexible retirement should first discuss their request with the Headteacher to seek initial approval. The Headteacher will then discuss the request with the Chair of Governors to confirm the schools’ approval and if agreed process application.