Pension Changes
Important changes to the Teachers Pension Scheme will come into effect from 1 January 2007:
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More detailed information can be obtained from Teachers' Pensions web site.
Key points are detailed below
For new entrants to the scheme:
(A new entrant can be defined as someone who does not have any pensionable service before 1 January 2007)
* Automatic membership of the scheme whether employed in a full-time or part-time capacity. It is still possible to opt out of the scheme
* Normal Pension Age (NPA) of 65. This also includes those existing employees who do not make a part time election before 31 December 2006
* The better of the last year's salary, or the re-valued (in line with RPI) average of the best three consecutive years' salary in the last ten years of service to be used for calculating benefits at retirement
* Pension based on 1/60th of salary for each year of pensionable service with flexible option to take up to 25% of "fund value" after commutation as a tax free lump sum by surrendering £1 of annual pension for £12 of lump sum
* Phased retirement arrangements. These would enable TPS members, under defined circumstances, to continue wor
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as a teacher within the TPS while drawing down some of their accrued pension
* A facility to purchase up to £5,000 of additional annual pension
* Ill-health retirement package - tiered approach with a higher level of benefits for total incapacity and lower level of benefits for partial incapacity.
* Actuarial enhancement for those who continue in work beyond NPA of 65 without accessing their pension benefits
* Death grant of three times salary
* Dependants' benefits payable to unmarried partners
* Spouses and nominated partners' pension paid for life
For existing scheme members:
* Automatic part time membership - change in contract
* Retain normal retirement age of 60
* Minimum Retirement Age (MRA) of 55 by 2010, except on the grounds of ill health
* The better of the last year's salary, or the re-valued (in line with RPI) average of the best three consecutive years' salary in the last ten years of service to be used for calculating benefits at retirement
* Phased retirement arrangements. These would enable TPS members, under defined circumstances, to continue wor
To view links or images in this forum your post count must be 1 or greater. You currently have 0 posts.
as a teacher within the TPS while drawing down some of their accrued pension
* More s
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e to take a higher tax free lump sum and lower level of pension
* A facility to purchase up to £5,000 of additional annual pension
* Ill-health retirement package - tiered approach with a higher level of benefits for total incapacity and lower level of benefits for partial incapacity
* An increase in death grant of three times salary
* Dependants' benefits payable to unmarried partners
* Spouses and nominated partners' pension paid for life
A DVD HAS BEEN SENT TO EVERY SCHOOL IN THE COUNTRY, ADDRESSED TO THE HEAD TEACHER AND THEY HAVE BEEN ASKED TO MAKE SURE THE DVD IS AVAILABLE TO EVERY TEACHING MEMBER OF THEIR SCHOOL.
***Note from Nutty***
Haven't read it yet, haven't got a clue what the changes are, how they'll affect me, but though it'd be good to post here fyi! That one in bold though is really cheeky... I've heard of people caught out by this before... it's the last year, or average of last three years of teaching before retirement which count, which is exactly when many teachers would want to be cutting down their hours... they can't, they get less pension, after all those years of service!
Rant over.
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