teachers’

PENSIONS SCHEME

News from the TP Team - School Finance Forum February 2010

The items below are for action by schools not using Croydon’s HR and Payroll services and for information only for SLA schools as the TP Team will take action for you.

REMINDER – TR6 & TR8 starter and leaver notifications

January is the start of a new term and a changeover of staff. Please remember to complete and send into the TP Team your TR8 forms for teachers who left at the end of the calendar year and your TR6 forms for new appointments from January 2010.

These notifications must be submitted for every changeover of staff throughout the school year and particularly at the end/start of term.

Teacher Reference numbers

Teachers Pensions Darlington requires us to record teacher reference numbers as this is the primary key used to research teacher records and is quoted on invoices, correspondence and missing service requests. It is also the first piece of information asked for on all TP forms and the Annual Return of Teacher Service. The reference number is evidence of QTS status and helps schools to identify unqualified and overseas teachers who may be working towards QTS to ensure this is achieved as part of their contractual terms. The exceptions report from the 2008/9 Annual Return has highlighted a lot of annual returns from 3rd party providers with this column blank, although the information should be available through the appointment process.

Schools are asked to check if they have all their teachers’ reference numbers and to send them into the TP Team to record and send onto TP. The number can appear in one of the following ways: “RP Ref”, “DfES Ref” or “DCSF Ref”. We will also contact those schools affected as part of our work to correct the 2008/9 exceptions report.

Change of personal details

Again, the exceptions report has highlighted records where a national insurance number is shown against two separate individuals. The record in the original name has ceased and TP has quoted the new name as an unconfirmed record. Please ensure that if any of your teachers change name, or there are amendments to the national insurance number or date of birth, you complete a PERDETCHANGE form. We will contact those schools affected as part of our work to correct the 2008/9 exceptions report.

Calculation of part time salaries

We would ask schools to check how their providers calculate part time salaries for the annual return. The exceptions report has highlighted many part time teachers in non-SLA schools where the actual part time salary quoted is higher than expected or inconsistent with the period reported. For example the annual return reports on:

  • 1 April – 31 August = 5 month period for part time salary
  • 1 September – 31 March = 7 month period for part time salary

For each period the figure required is the actual gross part time salary earned and NOT the percentage contracted hours pro-rata’d to the period.

So for a teacher working 60%, their salary from April to August is what they received as gross payment, before deductions, for those 5 months; and from September to March their salary is what they received in gross payment, before deductions, for the remaining 7 months. Note that in both cases these figures could be less than a straight 60% of annual salary.

This is particularly important for your supply teachers where their paid hours could be considerably less than their %age contracted hours. It is important to record part time salaries correctly as TP will reconcile contributions against this figure and may expect higher contributions from the employee and employer. We will contact those schools affected as part of our work to correct the 2008/9 exceptions report.

Re-employment of retired teachers

Increasingly, retired teachers are taking up employment at schools on a part time basis. This is a formal arrangement and schools must be aware that:

  • There MUST be at least one day’s break in service between the retirement date and the start of the new appointment.
  • The break in service cannot be annual leave – it must be out of service and out of salary. It does not have to be a work day as long as there is a one day’s break in the dates.
  • Ideally the new appointment should be on less %age hours than the previous contract to avoid pension being reduced or stopped: check with TP in each case.
  • On appointment the teacher must complete a “Certificate of Re-Employment” form to notify TP they are working. TP will then send out another form at the end of the tax year to assess earnings against pension.
  • On appointment the teacher automatically re-enters the pension scheme and contributions must be taken from salary towards a second pension, payable when the teacher ends or retires from this employment.
  • If the teacher does not wish to re-enter the scheme they must complete an “Opt Out” form and send it, with the “Certificate of Re-Employment” form into the TP Team for processing.
  • When the teacher retires and has paid into the scheme they must complete an “Application for Retirement Benefits – Additional Service after Retirement” form to claim their secondary pension benefits.

Where a teacher has returned to teaching and TP has not been informed they will write to the teacher direct using the information provided on the annual return.

OSLA payments and One-to-One Tuition

TP Darlington has recently re-confirmed to all LAs that payment for Out of School Learning Activity (OSHLA) and One-to-One Tuition is pensionable. Please check with your providers that they are still applying the following provisions in arranging salary and pension contributions:

  • Employment is OSHLA or One-to-One Tuition only – all payments are pensionable
  • Full time teacher - where this workis contractual the payments must be included with salary for pension deductions. BUT where the work is covered by an additional separate part time contract the payments are non pensionable. (This is because part time work undertaken concurrently with full time work is excluded under the teacher’s pension regulations.)**
  • Part time teacher - where this work is contractual the payments must be included with salary for pension deductions. BUT where the work is covered by an additional separate part time contract then the person is in concurrent employment. Their employment must be recorded on any TP form and the annual return as a single line of service combining the two employments and the two full time annual salaries on a proportionate basis. TP have provided full instructions and a spreadsheet for calculating concurrent employment in Appendix 8 of the Employer’s Guide on the teachers pension website

Apart from ** above, in all cases these payments must be shown in the salary figures for the annual returnas indicated above, to ensure the additional earnings are credited to the member for increased pension benefits on retirement.

REMINDER - GTC Payments

The £33 annual GTC payment to teachers is pensionable. It must be included in the annual salary and part time actual salary column (if appropriate) on the annual return, and be included in the “Other Allowances” column. This will confirm to TP that the payment has been made and included for pension benefits.

REMINDER - Opt Out Forms

Any teacher choosing to opt out of the scheme either on appointment or subsequently must complete an “Opt Out” form with repayment of contributions arranged through salary if within the current tax year. There will be an adjustment of national insurance and tax payments on these contributions.

In all cases, completed TP Forms must be sent into the TP Team for authorisation, with salary information provided as required. Where forms are completed on-line they are automatically sent to the LA for authorisation before being submitted electronically to TP Darlington.

Questions?

There is a lot of information in this session’s bulletin and we are happy to advise further if necessary, but it is important to ensure that your 3rd party provider is fully aware of the statutory requirements for pension deductions and recording service under the TP Regulations 1997

To send us information or if you or your staff have any questions or queries relating to this bulletin or teachers pensions generally you can either use the TP Query Sheet (available through the Schools Bulletin, Fronter website or the HR Schools Bulletin at or email us direct at:.

Croydon Teachers Pensions Team

January 2010

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