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Tax for a retired F E lecturer


KathyC

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My husband is a teacher who took early retirement some years ago. He now gets a pension from three sources. I think we're clear about the taxing of two of these when we move to France; his TPA pension will be taxed in the UK and his state retirement pension will be taxed in France. ( Do correct me if I'm wrong - it's perfectly possible!) However, when he took early retirement it was part of a voluntary redundancy deal and he was given a certain number of "added years" by his employer -an FE College. Does anyone know whether the payment of these extra years will be taxed in France or the UK? I wonder if anyone's in the same situation or can point me to a source of further information?

Thanks

 

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I may be wrong but I thought that any pensions arising from work as a teacher, or college lecturer, were regarded as being paid by local government, and thus taxed in UK rather than France. If paid as a lump sum, rather than as a pension, then that could well be taxable in France.
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[quote user="Will"]I may be wrong but I thought that any pensions arising from work as a teacher, or college lecturer, were regarded as being paid by local government, and thus taxed in UK rather than France. If paid as a lump sum, rather than as a pension, then that could well be taxable in France.[/quote]

You may well be right about this but I'm not sure. I think the crux is "regarded as being paid by local government". Colleges were put in charge of their own finances some years ago so I don't know whether this part of the pension (paid monthly ) would be seen as coming from an independent organisation. In the UK it's a completely separate payment with separate pay slips and p45. I can see it being complicated, which is why I thought I'd do a bit of research first. It's an unusual situation in the UK so I can't see the French being able to understand it at all!

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I used the words advisedly, as my late father was, towards the end of his working life, a lecturer, first directly for the education authority, then for what was ostensibly a private establishment (most of its students came from the Middle East and paid handsome fees) but which was administratively under the wing of a group of local authority further education establishments. All of his occupational pensions etc were teacher's pensions for the local authority, so were one of the easiest parts of his affairs to sort out (fortunately French taxation didn't come into it). But that was a few years ago now, and my mother-in-law, who was also a teacher for a while (and fortunately still with us) has a real mish-mash of pensions, part privatised and part not, which would really confuse the French. So it may change between education authorities, and may have changed over time.
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Added years should be treated the same way as the pension they increase. Added years can arise in a number of ways, in addition the circumstances you have outlined they can be purchased through AVCs, part of an individual settlement or consolidating an organisation's schemes.

In drawing a pension I cannot envisage a situation where a individual needs to disclose the make up eg 70% from the employers contributions, 20% from personal contributions, 5% from AVCs and 5% from early retirement. I guess also included in the early retirement figure will be a modified actuarial deduction which also does not have to be disclosed or taxed differently and indeed would not be known by most folk.

The payment of the added years should be included in the 'normal' pension payment and not a separate payment. If it is a separate payment can I suggest you check the terms closely as they should be exactly the same as the 'normal' pension as to increases, widows pension etc and if it is paid separately ask the scheme administrators why.

 

 

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[quote user="united"]

Added years should be treated the same way as the pension they increase. Added years can arise in a number of ways, in addition the circumstances you have outlined they can be purchased through AVCs, part of an individual settlement or consolidating an organisation's schemes.

In drawing a pension I cannot envisage a situation where a individual needs to disclose the make up eg 70% from the employers contributions, 20% from personal contributions, 5% from AVCs and 5% from early retirement. I guess also included in the early retirement figure will be a modified actuarial deduction which also does not have to be disclosed or taxed differently and indeed would not be known by most folk.

The payment of the added years should be included in the 'normal' pension payment and not a separate payment. If it is a separate payment can I suggest you check the terms closely as they should be exactly the same as the 'normal' pension as to increases, widows pension etc and if it is paid separately ask the scheme administrators why.

 

[/quote]

United

Thanks for taking the time to reply. In my husband's case the added years come about from a redundancy package and are, therefore paid directly (and separately) by his former employer, the FE college, whereas his main pension is paid by the TPA. Within this sector it was quite a common arrangement as they "encouraged" all the older (ie. more expensive) staff to take early retirement. The added years payments follow all the guidelines of the TPA scheme but are paid directly by the employer. This was an openly negotiated arrangement with full union consultation.This is why I was hoping to find someone on here in a similar situation. Unlike school teachers, who are employed by the local authority, FE lecturers are employed directly by individual colleges but contribute to the TPA.

Will

I expect that someone who was employed as a teacher in the private sector might find themselves in a similar situation but, as you say, you never needed to sort it out for your mother. Thanks for taking the time to consider it.

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