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Teachers' Scheme

This page gives you a brief overview of the key provisions of your Scheme. More information can be found in the Scheme Guide or in the FAQs section. If you can’t find the information you are looking for please contact us.

The Teachers’ Pension Scheme is a defined benefit pension scheme, where both you and the Isle of Man Government contribute money towards the retirement benefits you receive.

When you retire you will receive a pension (a regular retirement income) and an optional cash lump sum. There are also other benefits like death benefits and ill health retirement.

Under the Teachers’ Pension Scheme you:

  • can take up to 30% of the value of your pension in cash at retirement

  • pay a contribution rate between 6.4% and 12.4% depending on how much you earn, then your employer matches this with a further 15%

  • can top up your savings in a number of different ways

  • receive protection for your family

You can read a more in-depth description of the scheme further down the page.


Your benefits 

When you retire you will receive a pension (e.g. a regular retirement income).

You can also take an optional cash lump sum by exchanging some of your pension.

The amount you receive will be based on your pay before you retire and how long you have worked as a teacher. So, unlike a bank account, your total savings aren’t calculated based on how much money you contribute.

How much will it cost me? 

When you’re a member of the Teachers’ Pension Scheme you will pay a contribution at a rate that is dependant on how much you earn. The rates are shown in the table below: 

Lower Salary

Higher Salary

Contribution rate

Up to





















£100,000 +



Your employer will contribute 15%

Top up your savings

If you think you might need a bigger pension, there are two options available to you via the Teachers' Scheme into which you can pay additional contributions to boost your retirement income.

Personal Pension Plan  

This arrangement lets you to pay additional voluntary contributions to boost your retirement savings. Using this method, you can save what you can afford to at different times of your life.

This is your own retirement plan and means that the benefits you receive from it when you retire are based on:

  • how much you contribute
  • the performance of your investment options you choose
  • the cost of buying a retirement income when you retire

When you retire you use this fund to buy an additional pension for you (or for you and your dependants). You can also take some of this money as a cash lump sum.

The PSPA has an arrangement for scheme members with MAC Financial who will advise you on the arrangements available to you. If you would like to know more, please contact MAC Financial directly. You can of course arrange a plan independently of the PSPA and MAC Financial.  

Added Pension 

You can also buy additional pension to increase your pension benefits when you retire. Additional Pension is calculated separately from your regular pension benefits. You can buy it in units of £250 up to the age of 65 and buy it for yourself, or for yourself and your adult beneficiary. How you pay is up to you. You can pay by regular deductions from your salary or by a one-off lump sum.

For more information or a quote contact the PSPA on +44 1624 685598 or email your request to

Protection for your family 

The Teachers’ Schemes will provide you and your family with valuable protection, through:

  • Ill health retirement – If you are too ill to work, you may be able to retire early and take your pension benefits

  • Death in service benefits – If you die in service before you retire, the Teachers’ Schemes will pay lump sum Death Grant to your beneficiary of three times your average salary. You can nominate a beneficiary to receive this death grant by completing the Death Grant Nomination Form

  • Survivor pensions – If you die in service, a pension will also be payable for life to your adult dependent and any dependent children. An Adult's pension is automatically paid to your spouse or civil partner. If you are not married, but co-habiting with your long-term partner, you may be able to nominate them to receive the adult's pension in the event of your death.  If you want to nominate your unmarried partner then you must both make a joint declaration by completing the Partner Nomination Form. The PSPA will not award an adult's pension to an unmarried partner without a completed Partner Nomination Form

Please note the Nomination for a lump sum Death Grant is not the same as a Partner Nomination. The nomination for the lump sum death grant only relates to the payment of the death grant and not the payment of an adult’s pension to an unmarried partner.

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