A new campaign has described the changes override a ‘promised right’ and make it ‘impossible’ to plan for retirement
Teachers have slammed changes to their pension age as ‘ridiculous'(Image: Getty)
After changes to the state pension age, teachers will be forced to wait an extra two years to retire. A new petition on the Parliament website is calling for the government to issue new guidance on teachers’ early retirement rights.
The Department for Education has confirmed thousands of teachers will be forced to wait longer to retire. If a teacher wants to take early retirement currently they can do so at 55.
However, by 2028, they will have to wait an extra two years, with campaigners complaining it’s unfair and leaving people unable to plan for their retirement. The petition says: “The state pension age will change to 67 in 2028 and therefore the minimum early retirement age will change to 57. Teachers with final salary pensions who started teaching before the pension changed to career average have a given early retirement age of 55, rather than this being tied to state pension age
“As both pension schemes must be taken together according to current rules, we feel there is a need for further guidance – one scheme has a right to access at 55, the other 57 and yet new rules say they must be taken together.”
The petition has been created by Carolyn Bramall who said: “The pension age change in just 3 years is going to cause an issue for teachers who wish to retire early. Teachers were promised the right to retire early at a set age, 55, in our original pension scheme but current rules say we must take all our pensions together if we retire early and our new career average pensions are linked to the state pension age which, in April 2028 becomes 57.
“Our promised right to retire at 55 then becomes impossible without intervention from the government. This guidance has been pending for many years and I find it ridiculous that we are told to plan for our retirement and yet this is currently impossible for teachers who wish to take early retirement after 2028.”
National Education Union said: “The ‘minimum normal pension age’ (the minimum age at which private pension rights can be taken) is set to increase from 55 to 57 from 6 April 2028. This is an over-riding legislative change from the Government intended to link the age at which people can take private pension rights to the state pension age (which will be 67 from 6 April 2028 under current legislation).
“There are exceptions which allow some groups to keep a ‘protected pension age’ at 55. This includes final salary rights in the Teachers’ Pension Scheme, as the right to take a pension at 55 was set out in scheme regulations. The position is less clear with career average rights, but the NEU’s current understanding is that these do not carry a protected pension age. To take pension rights at 55 from 6 April 2028, you must have been in the TPS before 4 November 2021.”
A Department for Education spokesperson said: “Teachers are at the heart of this government’s mission to break down barriers to opportunity, and a guaranteed income in retirement is one of the rewards teachers deserve for their hard work.
“The change in pension age applies to all UK-registered pension schemes, including the Teacher Pension Scheme. We are aware of how the changes will impact members and we will be issuing communications setting out our position shortly.
“Our Teacher Pension Scheme is a key part of recruiting and retaining the best and brightest teachers. We’re already seeing thousands more teachers in secondary and special schools in England compared to last year, more people accepting teacher training places in STEM subjects this autumn and more teachers forecasted to stay in the profession – the best retention rates in nearly a decade.”
The DfE pointed out The Finance Act 2022 increases the normal minimum pension age (NMPA) from 55 to 57, on 6 April 2028. This change applies to all UK registered pension schemes and is not a change that is being made specifically to TPS rules.
It disputes that teachers who have final salary service have a given normal minimum pension age (NMPA) of 55. According to officials the final salary scheme (pre-2015) does have a named minimum pension age of 55, but this does not extend to any service in the career average scheme. The career average scheme has a minimum pension age that increases in line with state pension age.
The department are aware that this increase to the minimum age will cause an issue for those members who have both final salary and career average service, and wish to retire between 55 and 57, as current rules do dictate that members who retire early must take all benefits owed at that point.
The department said it is considering the implications of the changes to NMPA and how those changes will impact members of the TPS. Identifying the appropriate changes to pension scheme rules is complex and the department must be satisfied that any changes made are compliant with legislation and would not run a high risk of legal challenge. The department expect to issue communications on this issue shortly.
To view and back the petition click here.