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How a Career Break Affects Your Teachers' Pension

Taking a career break from teaching is one of the biggest pension decisions you will make — not because the rules are complicated, but because the cost hides in the compounding. Every year you are out of the TPS, you lose 1/57th of accrual **and** your existing pension drops from CPI + 1.6% revaluation to CPI only. Over a three-year break starting at M6, that gap compounds to roughly £3,000–£4,000 less pension per year at retirement. The calculator above shows your exact position, and this guide covers the rules for every type of break: unpaid leave, maternity, career breaks, and leaving teaching entirely.

Updated August 2026 · STPCD 2026/27 pay scales · 2026/27 tax year

Career break details

Pension gap from a 3-year break

£4,437

less pension each year (£370/month)

Without break

£35,285/yr

With 3-yr break

£30,848/yr

Pension reduction: 12.6% · Contributions saved during break: £9,631

ScenarioAnnual pensionContributions paid
No break (23 yrs service)£35,285£104,956
With 3-yr break (20 yrs after)£30,848£95,325
Difference£4,437/yr+£9,631 saved

What happens during a break

  • You stop accruing new pension — no contributions, no 1/57th added.
  • Your existing pension becomes deferred and revalues at CPI only (not the CPI + 1.6% that active members receive).
  • When you return to teaching, you rejoin the TPS and resume accruing at the full CPI + 1.6% active rate on new accruals.
  • The gap reduces your lifetime pension but you also save on contributions during the break.

Indicative comparison only. Actual revaluation uses the September CPI figure applied the following April. Not financial advice.

Key takeaways

  • During an unpaid career break you stop accruing new pension — no contributions, no 1/57th added to your pot.
  • Your existing pension becomes deferred and revalues at CPI only, losing the extra 1.6% active members receive.
  • A 3-year break for a mid-career teacher on M6 typically costs £3,000–£4,000 less annual pension at retirement.
  • Maternity and adoption leave are partially protected — you continue accruing during paid maternity leave.
  • When you return, you rejoin the TPS immediately and your benefits resume the higher CPI + 1.6% revaluation rate.
  • The contributions you save during the break partially offset the pension loss — the calculator shows both sides.

What happens to your pension during a career break

When you take an unpaid career break, two things happen to your Teachers' Pension:

  1. Accrual stops. You are no longer paying contributions, so you do not build any new pension. Each year out costs you 1/57th of that year's pensionable pay in lost annual pension.
  2. Revaluation drops. Your existing accrued pension switches from the active revaluation rate (CPI + 1.6%) to the deferred rate (CPI only). The 1.6% top-up you lose each year compounds over your remaining career.

The first cost is obvious: miss three years of service, lose three years of pension building. The second cost is hidden and usually larger: the compounding effect of 1.6% less revaluation each year, applied to your entire existing pot, adds up significantly over two or three decades.

For a detailed look at how deferred revaluation works, see the deferred pension guide.

How much does a career break actually cost?

The cost depends on your salary, how much pension you have already built, how long the break is, and how many years remain to retirement. Here are three representative scenarios:

Pension impact of career breaks at different career stages (2% CPI, 2.5% salary growth)
ScenarioBreakPension without breakPension with breakAnnual gap
ECT on M2 (£35,674), £2,000 accrued, 35 yrs to NPA2 years£41,200£38,900£2,300
Mid-career on M6 (£46,939), £8,000 accrued, 25 yrs to NPA3 years£36,800£33,100£3,700
Experienced on UPS 2 (£50,587), £12,000 accrued, 20 yrs to NPA5 years£33,500£27,600£5,900

Run your own numbers in the calculator above, or compare with the full-career projection from the pension calculator.

Maternity, adoption and shared parental leave

Maternity and adoption leave are treated differently from an unpaid career break:

Pension treatment during different types of leave
Leave typePension accrualYour contributionsEmployer contributions
Ordinary Maternity Leave (26 weeks)Yes — full accrualBased on pay receivedBased on full-time salary
Additional Maternity Leave (paid)Yes — full accrualBased on pay receivedBased on full-time salary
Additional Maternity Leave (unpaid)No accrualNoneNone
Shared Parental Leave (paid)Yes — full accrualBased on pay receivedBased on full-time salary
Unpaid parental leaveNo accrualNoneNone
Career break (unpaid)No accrualNoneNone

During paid maternity leave your pension contributions are based on the pay you actually receive (which may be statutory maternity pay or occupational maternity pay under Burgundy Book). Your employer continues to contribute based on your full-time salary. This means your pension accrual continues at the full rate even though your cash contributions may be lower.

The maternity pay guide covers the Burgundy Book entitlements and the exact pay schedule.

Sick leave and the pension

Full-pay sick leave continues your TPS membership as normal — contributions and accrual both continue at the full rate. Half-pay sick leave also continues membership, but your contributions and accrual are based on the reduced pay. Only once you exhaust sick pay entitlement and move to unpaid absence does accrual stop entirely.

The sick pay guide explains the Burgundy Book entitlement tiers.

What happens when you return from a career break

When you return to a TPS-eligible teaching post, you rejoin the scheme immediately. There is no waiting period, no re-qualification, and no penalty. Your deferred benefits are linked back to your active record and resume receiving the higher CPI + 1.6% revaluation from that point.

You do not get back the 1/57th accrual you missed during the break — those years are permanently lost. But the higher revaluation rate on your existing pot resumes, which partially closes the gap over time.

Career break vs part-time working: the pension comparison

Some teachers consider reducing to part-time rather than taking a full break, precisely because of the pension impact. The comparison is worth making explicit:

Pension impact: 3-year break vs 3 years at 0.5 FTE (M6, £8,000 accrued, 25 yrs to NPA)
MetricFull break0.5 FTE for 3 years
Accrual during periodNone3 × (£46,939 × 0.5 × 1/57) = £1,235 total
Revaluation rateCPI only (2%)CPI + 1.6% (3.6%) — still active
Contributions saved~£12,100~£6,050 saved vs full-time
Pension gap vs full-time~£3,700/yr~£1,400/yr

Going to 0.5 FTE for three years costs about £1,400 a year less pension at retirement compared with full-time — roughly a third of the £3,700 gap from a full break. The part-time pay calculator can model the take-home side.

How to protect your pension during a career break

  • Keep the break short. Every year out compounds the loss. If you can return after one or two years instead of three, the difference is meaningful.
  • Return even briefly. Re-entering the TPS for even one year before a longer break restores the active revaluation rate on your entire pot for that year.
  • Consider part-time rather than full break. Even a 0.2 FTE role maintains active membership and the higher revaluation rate.
  • Buy added pension on return. The TPS Added Pension facility lets you replace some of the lost accrual. The younger you are when you buy, the cheaper it is.
  • Check your State Pension. A long career break can create NI gaps. Fill them with voluntary Class 3 contributions if needed — check at gov.uk/check-state-pension.
  • Consider AVCs on return. If buying added pension is too expensive, the AVC route lets you invest through the TPS via Prudential.

Career breaks and the annual allowance

When you return from a career break and resume contributing, your pension input amount for that year may be higher than normal if your salary has increased during the break. This is unlikely to trigger the £60,000 annual allowance for most teachers, but if you are on a leadership salary and return after a significant pay rise, it is worth checking. The pension contributions guide covers the annual allowance.

Frequently asked questions

Does a career break affect my teachers' pension?

Yes. You stop accruing new pension and your existing pension revalues at CPI only (not CPI + 1.6%). A typical 3-year break costs £3,000–£4,000 less annual pension at retirement.

Do I keep my pension if I leave teaching?

Yes. Your accrued pension stays in the TPS as a deferred benefit, revaluing by CPI each year until you draw it. It is never lost.

Is maternity leave a career break for pension purposes?

Paid maternity leave is not a break — you continue accruing pension. Only the unpaid portion of Additional Maternity Leave (if any) stops accrual.

Can I buy back the pension I missed during a career break?

You cannot buy back service directly, but you can purchase Added Pension (up to £8,366.52/yr in 2026/27) to boost your benefits. The cost depends on your age at purchase.

How long can I be on a career break and still rejoin the TPS?

There is no time limit. Whether you leave for 2 years or 20, you can rejoin the TPS immediately on returning to a TPS-eligible post.

Does unpaid leave affect my pension?

Yes. Any unpaid leave — whether a career break, unpaid parental leave, or unpaid sick leave — stops pension accrual and switches your pot to deferred revaluation.

Should I opt out of the TPS to save money?

Almost never. The employer contribution alone (28.8%) makes the TPS extremely valuable. Even if cashflow is tight, staying in part-time is almost always better than opting out entirely.

What about supply teaching during a career break?

If you work as a supply teacher through an agency, you may not be enrolled in the TPS — many agencies use other pension schemes. Direct supply work for a school that offers TPS membership would maintain your active status.

Sources