This advice relates to the news that the Education Secretary calls for ex-teachers to return to classrooms.
The government has sent out a plea for all teachers no longer in the classroom to help the current profession deal with the fallout due to the Omicron variant.
Their advice as to how to become involved and register is contained within the www.gov.uk link above.
However, there are a couple of caveats that seemingly have been overlooked in the advice and guidance, in the rush to get teachers to return to the classroom that NSEAD wishes to bring to our members attention.
For those members who have retired and are in receipt of their pension, the Teachers Pension Scheme allows scheme members to draw down on their pension, but they are still able to contribute to it by working as part of this initiative.
NSEAD cannot provide you with individual pension advice, however, members are free to contact the TPS directly on 0345 606 6166 to speak with an adviser.
This is important as each individual has a limit as to how much additional money they can top up their pension with from new teaching employment. As this varies for each person, the only way to find this out is by checking your TPS online account or by speaking with an adviser.
Some schools/employers may suggest opting out of TPS altogether. NSEAD strongly recommends that this is declined as employers pay an employer contribution rate of 23.68% and even with the lowest employee contribution rate of 7.4%, this means that on top of salary, you will be adding an additional 31.08% of your pre-tax wage to your pension pot.
Earnings before tax: £1000.00
TPS Employer contribution: £236.80
TPS Employee contribution: £74.00
Secondly, for those members that complete self-assessment tax returns, or are in receipt of means tested benefits, these are both likely to be affected by a return to the classroom. In this instance it is essential to speak with your local tax office about the implications of your return to the classroom.
Thirdly, it is essential for all teachers to be registered with the Disclosure and Barring Service (DBS). This can be a lengthy and frustrating process, so the sooner an application is made by your agency/employer, the sooner you will be able to return to the classroom.
Finally, there is the consideration of which employer to work for. This is the age-old conundrum of agency versus direct employment with a school.
There are positives and negatives for working with both types of employer, however, one key difference is ultimately going to be your remuneration.
Agencies tend to pay their ‘agents’ through umbrella companies (some will use PAYE but most do not offer this). As a consequence, they do not have access to pay into the Teachers’ Pension Scheme as they are not registered with the TPS.
Being employed directly with a school means they are your employer. You can negotiate length of contract, pay scale and you can elect to contribute to TPS.
As always, if you have any questions then please contact NSEAD for up to date advice.