Phased retirement options for members of the Teachers’ Pension Scheme (TPS)

University employees who are members of the TPS and are aged 55 or over may now apply to the University for either or both of two phased retirement options. These allow some of the accrued pension benefits to be paid before the normal age of retirement, while the employee continues to work at the University and to draw a salary. The pension benefits payable will be actuarially reduced if they are being paid early, and therefore, potentially for a longer period. For most people this means that pension benefits will be reduced if they are paid before 60.

Scheme rules require that to apply for phased retirement salary must be reduced by at least 25% and the employer must certify that this reduction will apply for a minimum of 12 months. At least 25% of the employee’s benefits must be retained in the scheme as a residual benefit. Service after the phased retirement date will be added to that residual service. Two phased retirement events can occur before final retirement but in each case the salary must be reduced by 25% and 25% of benefits must be retained in the scheme. For full details of the scheme you should refer to the teachers' pensions website.

The University will consider applications on the basis of the operational needs of the University.

Option 1: Phased retirement with a reduced number of weekly/monthly working hours

Applications should be made through the standard procedure for requesting changes to an employee’s hours or pattern of work, including the formal request for phased retirement as part of the reduced work package. The line Manager and link HR Manager will hold a meeting with the applicant to discuss the application.

Option 2: Phased retirement with a reduction in grade

Applications should be raised initially with the employee’s line Manager and Dean/Director. If the application is supported in principle, access to lower graded posts may be secured through either the redeployment or recruitment procedures.

Where a voluntary severance scheme is in operation, the University will consider phased retirement together with partial severance.