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📚 Teachers' Pension Transfer

Teachers' Pension Transfer Understand Your Options

The Teachers' Pension Scheme provides a guaranteed income in retirement. Transferring out means giving up this guarantee in exchange for flexibility. For most teachers, keeping their TPS benefits is the right choice — but everyone's situation is different.

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What Is a Teachers’ Pension Transfer?

A teachers’ pension transfer involves moving your benefits from the Teachers’ Pension Scheme (TPS) to a personal pension such as a SIPP. The TPS is a major UK public sector defined benefit scheme covering over 2 million members, including teachers in state-funded schools, academies, and some independent schools.

The TPS changed from a final salary to a career average (CARE) scheme in April 2015. Benefits accrued before 2015 are based on your final salary, while post-2015 benefits use career average revalued earnings with an accrual rate of 1/57th. The scheme has a normal pension age linked to the State Pension age for the 2015 section, while the pre-2015 sections offer pension ages of 60 or 65.

Transferring out means giving up guaranteed, inflation-linked pension benefits. As a DB scheme worth over £30,000, regulated advice is mandatory. Key considerations include:

  • Scheme sections – the TPS has pre-2007 benefits (NPA 60), 2007-2015 benefits (NPA 65), and post-2015 CARE benefits (NPA linked to State Pension age). Long-serving teachers may have benefits across all three.
  • McCloud remedy – teachers who were in the pre-2015 scheme may benefit from the McCloud remedy, receiving the better of their old scheme benefits or CARE benefits for the remedy period (2015-2022).
  • Employer contributions – the TPS employer contribution rate is 28.68%, one of the highest in the UK. This represents enormous value that cannot be replicated in a private pension.
  • Phased retirement – teachers can take phased retirement, drawing some pension while continuing to work part-time. This flexibility within the scheme may reduce the appeal of transferring.
  • Fast accrual – the 1/57th accrual rate in the CARE section is relatively generous for a CARE scheme. A teacher earning £40,000 accrues £702 of annual pension per year of service.
  • Unfunded scheme – the TPS is unfunded and backed by government. The employer covenant is extremely strong, making benefit security very high.
Key fact: The Teachers’ Pension Scheme employer contribution rate of 28.68% is one of the highest in the UK. If a teacher earns £40,000, their employer contributes £11,472 towards their pension each year – a benefit that no private sector employer pension comes close to matching.
Teachers’ Pension Options

TPS Pension vs Personal Pension

Compare the key features of the Teachers’ Pension Scheme against a personal pension after transfer.

FeatureKeep TPS PensionTransfer to Personal Pension
Income guaranteeGuaranteed, CPI-linked for lifeDepends on investment returns
Employer contribution28.68% of salaryNone
FlexibilityFixed structure, phased retirement optionFull flexibility from age 55 (57 from 2028)
Death benefitsSpouse pension + lump sumFull pot to any beneficiary
Pension age60 / 65 / SPA depending on sectionFrom age 55 (57 from 2028)
Investment riskNone – government-backedFull risk on you
Important: The TPS is one of the most generous pension schemes in the UK with an employer contribution of 28.68% and government backing. Transferring away from this level of employer support is a serious decision and is unlikely to be in the best interests of most teachers.
Who Is It For?

Who Benefits from Teachers’ Pension Transfer Advice?

While most teachers should keep their TPS pension, there are limited situations where transfer advice is valuable.

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Left Teaching

You have left the teaching profession and have a deferred TPS pension. Understanding the transfer value versus the guaranteed benefits requires specialist analysis.

Review your deferred TPS benefits with a transfer specialist
❤️

Health Concerns

If you have a serious health condition, the guaranteed income may be less valuable and a transferred pot could provide more flexibility and better death benefits for your family.

Explore how health affects the transfer calculation
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Estate Planning

TPS death benefits are primarily for spouses and dependants. If you want to leave pension savings to other family members, a DC pension provides more flexibility.

Compare TPS death benefits against DC inheritance options
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High-Earning Head Teacher

Senior teachers and head teachers may face annual allowance issues due to the high employer contribution rate and salary progression. Transfer advice may form part of a broader tax planning strategy.

Get specialist advice on pension tax for senior teachers
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Moved to Independent Sector

If you have moved from a state school to an independent school that does not participate in the TPS, you may want to review your deferred TPS pension alongside your new arrangements.

Assess your TPS pension alongside new pension arrangements
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Retiring Overseas

If you plan to retire abroad, managing a UK TPS pension from overseas has implications for tax and currency that may affect your decision.

Get international pension advice before transferring

Considering transferring your teachers’ pension?

Get matched with an FCA-regulated adviser who understands the Teachers’ Pension Scheme. Free matching, no obligation.

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Costs Explained

How Much Does Teachers’ Pension Transfer Advice Cost?

TPS transfer advice requires understanding of the scheme’s multiple sections and unique features.

£1,500–£4,500
Initial Transfer Advice
Comprehensive analysis of your TPS benefits across all scheme sections, McCloud remedy impact, CETV assessment, and a personal recommendation on whether to transfer. Legally required for benefits worth over £30,000.
0.5%–1%/year
Ongoing Management
If you transfer, annual fees cover investment management, drawdown planning, and regular reviews. Recommended for those managing a large transferred pot.
Worth knowing: Through PensionHelper, our matching service is free with no obligation. The TPS is a complex scheme with multiple benefit sections. Expert advice from someone who understands teachers’ pensions is essential before making any transfer decision.
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Real Reviews

What Our Customers Say

Helen M.
Helen M.
Oxfordshire • Teachers’ Pension Transfer
★★★★★
“NPA 60 benefits preserved”

With 20 years in teaching, my pre-2007 benefits had a pension age of 60. The adviser showed these were exceptionally valuable and recommended keeping them. That early access to guaranteed income is worth far more than the CETV.

Robert N.
Robert N.
Lancashire • Teachers’ Pension Transfer
★★★★★
“McCloud remedy increased my pension”

The adviser calculated the McCloud remedy impact on my TPS benefits. The recalculation gave me a higher pension than I expected, confirming that keeping the scheme pension was the right decision.

Sarah J.
Sarah J.
London • Teachers’ Pension Transfer
★★★★★
“Left teaching, pension reviewed”

After leaving teaching for the private sector, I wanted to know if I should transfer my deferred TPS pension. The adviser showed me the guaranteed benefits were too good to give up and recommended leaving it in the scheme.

James P.
James P.
Bristol • Teachers’ Pension Transfer
★★★★★
“Annual allowance advice”

As a head teacher on £85,000, the high TPS employer contributions were causing annual allowance issues. The adviser helped me understand Scheme Pays and plan my finances to minimise the tax impact.

Margaret T.
Margaret T.
Newcastle • Teachers’ Pension Transfer
★★★★★
“Phased retirement explained”

I did not know I could take phased retirement from the TPS, drawing some pension while continuing to work part-time. The adviser showed me this option alongside the transfer analysis. Phased retirement was the clear winner.

David W.
David W.
Cardiff • Teachers’ Pension Transfer
★★★★★
“Complete pension picture”

The adviser reviewed my TPS pension alongside my wife’s NHS pension and our small private pensions. Having the complete picture helped us plan our retirement together. The TPS and NHS pensions are staying put.

Learn More

Related Guides

Explore our guides for more information on teachers’ pension transfers.

DB Pension Transfers

Understanding defined benefit transfers

Teachers’ Pension Advice

Specialist advice for teachers

Civil Service Transfers

Other public sector pension options

NHS Pension Transfers

NHS pension scheme options

Early Retirement

Planning for early retirement

Pension Transfer Guide

Complete guide to pension transfers
Got Questions?

Teachers’ Pension Transfer: Frequently Asked Questions

Yes, if you have left teaching and have deferred TPS benefits, you can request a CETV and transfer to a personal pension. As a DB scheme typically worth over £30,000, you must obtain regulated financial advice from a qualified pension transfer specialist before any transfer.
For the vast majority of teachers, yes. The TPS provides guaranteed, CPI-linked income for life, backed by the government, with employer contributions of 28.68%. It is one of the best pension schemes available in the UK and most advisers recommend keeping it.
It depends on when you joined: NPA 60 for service before 2007, NPA 65 for 2007-2015 service, and State Pension age for post-2015 service. Some members have transitional protections that may provide a lower pension age.
CETVs vary based on your age, salary, years of service, and which scheme sections your benefits fall in. Long-serving teachers can have CETVs of several hundred thousand pounds. Contact Teachers’ Pensions to request a CETV quotation.
Yes. Teachers who were in the pre-2015 scheme may benefit from the McCloud remedy, receiving the better of old or new scheme benefits for the period April 2015 to March 2022. This could increase your pension and CETV.
The post-2015 CARE section accrues at 1/57th of pensionable earnings each year. Pre-2007 benefits accrue at 1/80th of final salary (plus a separate lump sum), and 2007-2015 benefits accrue at 1/60th of final salary.
Yes. Teachers can take phased retirement, drawing part of their pension while continuing to work part-time. You must reduce your salary by at least 20%. This allows you to start receiving pension income without fully retiring.
The TPS provides a death-in-service lump sum (3x salary for active members), a spouse or partner pension, and children’s pensions. These are funded by the scheme at no extra cost and are valuable protections that would be lost on transfer.
Teacher contributions range from 7.4% to 11.7% of salary, depending on your annual earnings. While these are higher than many private sector pensions, the employer contributes 28.68%, making the total contribution over 40% of salary.
If you return to teaching, you will be enrolled in the 2015 section as a new member. However, the benefits you transferred out cannot be restored. Your new membership would start from scratch.
Contact Teachers’ Pensions at teacherspensions.co.uk to request a CETV quotation. You will need your Teachers’ Pensions reference number. The CETV is typically provided within 3 to 6 weeks and is valid for 3 months.
Supply teachers working in state-funded schools through an agency can join the TPS if the school agrees to make employer contributions. Some agencies also participate in the TPS. It is worth checking whether you are eligible, given the generous employer contribution rate.
Your pension continues to accrue based on your actual pensionable pay. Pre-2015 final salary benefits are based on your final salary (full-time equivalent). Post-2015 CARE benefits are based on actual pay. Going part-time reduces CARE accrual but may not affect final salary benefits.
The TPS is unfunded. Benefits are paid from current government expenditure rather than from invested assets. This means the scheme is backed by the government, providing very high security. The employer contribution (28.68%) is paid to HM Treasury.
The TPS employer contribution rate of 28.68% is one of the highest in the UK public sector (NHS is 23.7%, LGPS is typically 15-20%). The 1/57th accrual rate is broadly comparable with other public sector CARE schemes. All provide guaranteed, index-linked, government-backed benefits.

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