Jargon buster
Abatement – is the possible temporary reduction in pension during a period of Additional Service After Retirement.
Additional Voluntary Contributions (AVCs) are extra contributions that you can choose to pay if you wish to increase your benefits by providing an additional annuity
Actuarially Reduced Benefits (ARB) – These are benefits which may be taken before Normal Pension Age (NPA) if the member is aged 55 or over. The benefits will be actuarially reduced according to age at retirement, although the reduced pension will attract index linking.
Additional Service After Retirement (ASAR) – This is teaching employment after a
member has claimed retirement benefits from the TPS
Club Transfers Transfers between schemes that are members of the public sector transfer arrangements.
Back to the topExcluded Employment – this is teaching employment which would have been pensionable but for an election to opt-out of the scheme or the absence of a part-time election prior to 1 January 2007.
Back to the topFinal Average Salary - This is the salary used in the calculation of benefits at retirement.
Back to the topGuaranteed Minimum Pension (GMP) – this is the minimum pension which schemes must provide as a condition of being contracted out of State Earnings-Related Pension Scheme (SERPS).
Back to the topHer Majesty’s Revenue and Customs (HMRC) – Previously known as the Inland Revenue.
Back to the topMultiple Employment – concurrent part-time pensionable employment with more than one TPS employer.
Back to the topPensionable Employment – A period of full time
or part-time employment, between age
18 and 75, during which you are entitled to
receive not less than half your salary and on
which pension contributions were paid,
including sickness absence or, you are in
receipt of statutory family leave.
Preserved Benefits These are benefits which will be paid in the future if you satisfy the qualification conditions. If you have left the pension scheme and have not transferred your entitlement to another scheme, these are the benefits you will receive when you reach NPA.
Back to the topReckonable Service is service which counts for benefits, and can include service from pensionable employment, any additional service previously purchased, and any service credited into the TPS from another pension scheme.
Back to the topState Earnings Related Pension Scheme (SERPS) and State Second Pension (S2P) was also known as the additional State Pension. It ran from 6 April 1978 to 5 April 2002 when it was replaced by the S2P
Back to the topThe Regulations The Teachers’ Pensions Regulations 2010—Statutory Instrument 2010 No.990.
Transfer of Undertakings is where a body becomes a person’s employer through an enactment regarding the transfer of staff.
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