Late into teaching, what to do about PRSA

evolving_doors

I'm relatively late into teaching so I had about 5 years of a PRSA before i started...

Getting info from the dept about pensions is a nightmare (have a look at our website they say, but pensions are a minefield of terminology). Needless to say i've kept on the PRSA and am still claiming it in my tax credits every year.
Currently I am part paid by the DEpt (about 8 hrs per week) so the amt taken out is very low... I can't imagine when I retire that my dept. pension will amount to much, even asking the department to give me a calculation or formula for this has been a chore.

Given that a lot more teachers are entering the profession later in their lives I was wondering how anyone in a similar situation to mine has approached this issue...

Cheers

rainbowtrout

You can do the calculation youself (or give a rough estimate).

Pension = No. Years worked x 1/80 x final salary (point on scale).

So 40 years worked = 40/80 = 1/2 final salary (assuming full hours)

If you went in at 32 and you can't retire until you are 65, you will work 33 years.

33/80 x final salary (you'll be on top of the scale by then, so assume Point 25, plus long service increment, Degree allowance, dip allowance).

If you stay on 8 hours a week for the rest of your life that figure I guess is going to be 8/22 of the pension.

Or you could work it another way. Max years is 33. Multiply this by 8/22. 33/1 x 8/22 is exactly 12 years

So your final pension would be 12/80 x final salary as calculated above.


Also lump sum of 1.5 times final salary (assuming 40 years service) So again, calculate final salary x 1.5 and then get 12/40 of it.

evolving_doors

Cheers rainbow trout. On the ball.. Think ill keep the prsa on in the meantime... Or buy gold!!!