Pension Advice

Firstly, someone would have to look to compare what you'd get from the teacher's added years with what you might achieve by doing it another way. Also, to take into account that all the rules for pensions are going to be swept away in April 2006, so it's another ball game. But you can work out what 31/2 years might equate to when you're 60 given the scheme rules. 31/2 x your final salary divided by 80, plus three times this amount as a lump sum. You'd have to work out what your final salary might be.

Secondly, if you're a member of the teacher's scheme then you are automatically contracted out of SERPS. The scheme itself is contracted out so you don't have a choice. Most of the big schemes are. If you wanted to build up a further SERPS entitlement then you'd have to leave the scheme - but I doubt you'd want to do that.

Rob Graham

A bit more information about your employment/ pension history is needed.

You should not have contracted out through a private pension and been a member of a teachers scheme at the same time. It may be that your previous pension became paid up when you joined the teachers scheme. Did you contribute any cash to it or was it purely funded by the Serps rebate?

Find the literature about your teachers scheme and read it. They may have quite a good website explaining the scheme. They generally wont allow you to buy additional years if you are able to get your full years in (40) before normal retirement age (likely to be 65) If you achieve a full pension then you will retire on 50% of your salary with three times that as a lump sum. So if you finish as a teacher on 30k you will get 15k per year pension and 45k as a lump sum.

Often the consensus in this group seems to be that pensions are too restrictive. If you have your superannuation already then any other savings could be elsewhere- such as ISA's. That depends on being able to keep your hands off them though.

Neb