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Lucy and Jonathan, co-founders of Headteacher Chat, are supporting those in education with their interest in teaching pensions. They are joined by Wesleyan Financial Services for a webinar on the teacher's pension scheme, covering topics such as the MacLeod judgement, annual and lifetime allowances, and retirement planning. Steven, a financial advisor with extensive knowledge of pension schemes, provides valuable insights, including the importance of checking the accuracy of TPS statements and keeping records up-to-date.

The session aims to provide an overview of how the pension scheme works and how to mitigate against tax to improve retirement chances. The TPS is split into three sections, with benefits based on when you first joined the scheme and split between your final salary and your career average. The pension you receive under your final salary is equal to one-eighth or one-sixteenth of the average salary figure, and there is an automatic tax-free sum.

The career average pension works differently, with the pension slice for each year being one-57th of your earnings for that scheme year. The normal pension age will match your individual state pension age, and the pension goes up every year in line with inflation. The TPS allows teachers to access their pension benefits from the age of 55, with an actuarial reduction if you retire early. The annual allowance is the maximum that can be paid into pensions each tax year, and the carryforward facility allows excess allowances to be used from the last three tax years. Headteachers and members of the SLT are potentially breaching the annual allowance due to unique economic conditions, and receiving a letter from the TPS indicating a breach should not be ignored.