Employers' FAQs

Automatic Part Time Membership - Part Time Decision Trees for Employers

Service / Annual Return Related Queries

Q. What is the difference between pensionable and reckonable service?

A. Pensionable service is how we describe, in our literature, service which is pensionable in the Teachers’ Pension Scheme. Reckonable service is specifically service which counts in the calculation of pension benefits. For example, a scheme member may be in pensionable service, or employment, for a year but only be credited with half a year’s reckonable service because she is on a part-time contract.

 

Q. How are Employers going to know if a teacher is in multiple employment?

A. Employers should ask the teacher before they take up an appointment if they are already employed elsewhere. Further information can be found in the Employer Guide under Full-time and Part-time Employment.

 

Q. How are Employers going to be informed if a teacher who is in multiple employment joins the scheme with another Employer?

A. Employers must complete form TR6 when a teacher takes up a new appointment. If the teacher is already employed a notification will be issued to the other employers to advise them to deduct pension contributions. Further information can be found in the Employer Guide under Full-time and Part-time Employment.

 

Q. Will annual return become more complicated because of members having age 60 and 65 retirement benefits?

A. No, there will be no change to the annual return because of different NPAs. Further information can be found in the Employer Guide under Annual return of service, salary and additional contributions.

 

Q. Will employers have to provide the last ten years of service on retirement application forms?

A. No, only information relating to the final two years of service.

 

Q. If an employer does not currently hold ten years service details do TP hold this information?

A. TP will hold the data provided it has been included on the relevant annual returns.

 

Q. Are there any restrictions to the amount of service that can be used in the calculation of a member’s retirement benefits?

A. The maximum total pensionable service that can be used in the calculation of retirement benefits is 45 years.

A further restriction may also apply as follows:

  • If the member does not have any pensionable service after 01.01.2007 and accrues 40 years or more before reaching age 60 their benefits will be restricted. Their pension and lump sum will be based on 40 years plus any pensionable service accrued after reaching age 60.
  • If the member does have pensionable service after 01.01.2007 and has accrued 40 years pensionable service prior to 01.01.2007 their benefits will be restricted. Their pension and lump sum will be based on 40 years plus their pensionable service accrued on or after 01.01.2007 (or pensionable service accrued since their 60th birthday if that is earlier than 01.01.2007).
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Scheme Membership / Re-employment Related Queries

Q. What information are Employers expected to give new members of the scheme?

A. Employers should provide new appointees, both full and part-time with the Guide to the Scheme, if they have not previously received one and informing them that, without exception, they are automatically members of the scheme unless they opt out. Further information can be found in the Employer Guide under Employers responsibilities.

 

Q. Is it open for members to elect to be in the scheme with one employer and opt out with another?

A. No, members who opt out are opted out of all employment.

 

Q. Is there now a requirement for Employers to complete a TR6 for everyone?

A. Yes

 

Q. If a member is in concurrent service do we need a TR6 for each appointment?

A. No

 

Q. Are supply teachers now automatically members of the scheme?

A. Yes, all part time teachers who start a new contract on or after 1 January 2007 are automatically members of the scheme. Further information can be found in the Employer Guide under Full-time and Part-time Employment.

 

Q. Are casual teachers automatically in the scheme?

A. Yes, all teachers taking up employment on or after 1 January 2007 are automatically members of the scheme. Further information can be found in the Employer Guide under Full-time and Part-time Employment.

 

Q. Does automatic membership include visiting lecturers?

A. Yes, all teachers and lecturers taking up employment on or after 1 January 2007 are automatically members of the scheme. Further information can be found in the Employer Guide under Full-time and Part-time Employment.

 

Q. Are there a minimum number of hours a part timer has to work in order to be in the scheme?

A. No, all part time teachers who start a new contract on or after 1 January 2007 are automatically members of the scheme. Further information can be found in the Employer Guide under Full-time and Part-time Employment.

 

Q. If a part time member has currently opted out of the TPS is it open for them to opt back in?

A. Yes, a member may opt back into the TPS at any time. Further information can be found in the Employer Guide under Members Rejoining the TPS after previously opting out.

 

Q. If a member is currently opted out of the TPS is this still valid?

A. Yes, this remains valid until they opt back into the TPS.

 

Q. Must teachers complete an opt out form if they do not want to be members of the TPS?

A. Yes, if a teacher does not wish to join the TPS they must complete an opt out form. You should explain the benefits of the TPS to the teacher. Further information can be found in the Employer Guide under Members Opting out of the TPS. It may be possible for a teacher to submit an election to opt out of the scheme via My Pension Online (our secure website).

 

Q. How many times can a member opt in and out of the TPS?

A. The number of times a member may opt in and out of the TPS is unlimited.

 

Q. What is the timescale for back dating opt outs?

A. The rules surrounding opt outs remain the same and further information can be found in the Employer Guide under Members Opting out of the TPS.

 

Q. If a member has transferred out of the TPS but returns after 1/1/07 do they contribute under the new arrangements?

A. Yes

 

Q. Will retrospective part time elections still be accepted?

A. Only in exceptional circumstances. Comprehensive information will be required to support any retrospective election with an explanation as to why the election was not submitted at the correct time. They will, however be treated as a 1 January 2007 or later entrant in respect of all the service covered by the election.

 

Q. Are pensioners affected by the new rules?

A. If a retired member takes up an appointment on or after 1 January 2007 they are automatically members of the scheme. Further information can be found in the Employer Guide under Retired Teachers and Re-employment.

 

Q. Will EFE elections become obsolete?

A. Yes, but any existing elections will be honoured.

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Contributions Related Enquiries (including buying Additional Pension Benefits)

Q. Is the contribution rate different for new and existing members?

A. No, the same rate applies to all members.

 

Q. Is there still a requirement to deduct contributions in respect of part time service if the member already works a full time contract?

A. No. Where a person is in full-time employment and at the same time in part-time employment the part-time employment is not pensionable employment. Where an election was made before 1st January 2007 that such part-time employment should be pensionable, any such part-time employment on or after 1st January 2007 is (despite the election) no longer pensionable.

 

Q. If someone is paying contributions on a full time contract to the LGPS can they pay contributions into the TPS for any additional teaching work?

A. Yes, they are automatically a member of the TPS for their part time work and unless they decide to opt out contributions must be deducted. Further information can be found in the Employer Guide under Full-time and Part-time Employment.

 

Q. Can Employers still do refunds of contributions?

A. Yes, further information can be found in the Employer Guide Refund of contributions deducted in error.

 

Q. Are payments of additional pension by instalments to be collected by Employers?

A. Yes and these should be submitted with the other monthly contributions. Further information can be found in the Employer Guide Deduction of contributions, Additional pension contributions.

 

Q. Is it open to Employers to buy additional pension on behalf of members?

A. Yes, further information can be found in the Employer Guide Increasing Pension Benefits, Additional Pension.

 

Q. Will the £5200 additional pension limit be reviewed?

A. Yes, the limit will be reviewed annually in line with RPI.

 

Q. Is the purchase of additional pension pro-rata for part timers?

A. No, part time members pay contributions at the same rate as the same as full time members.

 

Q. Can members now pay more than 15% in contributions?

A. Yes, if a member wishes to purchase additional pension. The only limit that remains is the overall £5,000 limit.

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Retirement Benefit Related Queries

Q. What enhancement will be given to members who retire on ill-health when they have a normal pension age of 65?

A. The total amount of enhancement is half the service the teacher could have completed before NPA for TIB. This is the same for both member with a NPA of 60 and a NPA of 65. Further information can be found in the Employer Guide under Ill Health Retirement, General Background.

 

Q. Do the DfE Medical Advisers consider applications for ill-health using permanency criteria?

A. PIB will be awarded if a member is permanently unfit for teaching and TIB if in addition they are more than 90% incapacitated, are likely permanently to be so and unable to undertake any gainful employment. The Medical Advisers will determine whether the member is eligible to receive PIB before determining whether they can be awarded TIB. Each case will be looked at on its own merit. Further information can be found in the Employer Guide under Ill Health Retirement, The application process .

 

Q. If a member is rejected for ill-health under the current regulations but appeals after 1 January will the appeal be considered under new or old rules?

A. The appeal will be considered under the old rules if it is based on the original information provided with the application. If new information is provided, however, and it is deemed to be a new application, it will be considered under the new rules.

 

Q. Will there be a review process for members who have been accepted for partial ill-health benefits?

A. Only if the member takes up teaching employment when the pension will cease. Further information can be found in the Employer Guide under Ill Health Retirement, Other information.

 

Q. If a member is deemed to be unfit to teach and therefore receives ill-health benefits, can they continue to work in a school in a support role and still receive their benefits?

A. If PIB is awarded because the member is assessed as being permanently unable to teach but able to do other work then they may be able to take up a support role. If the member is awarded a TIB pension and wishes it to continue, they must provide the Secretary of State with a certificate from a registered medical practitioner. This must state that in the opinion of the medical practitioner, the member must still meet the medical condition for TIB to be paid. The nature of the proposed employment will also assist the Secretary of State in coming to a decision about whether or not the TIB pension can continue to be paid. In all cases, TP should be informed of the employment. Further information can be found in the Employer Guide under Ill Health Retirement, Other information.

 

Q. How many times can a member draw down on their pension under the phased retirement rules?

A. Members may take 2 phased retirements before taking final retirement. Further information can be found in the Employer Guide Phased retirement.

 

Q. Are there any changes to survivor partner benefits after retirement?

A. If the member retires or dies in service after 1 January 2007 a survivor’s pension may be paid to a nominated partner. Further information can be found in the Employer Guide Short term pension and the leaflet Survivor and death benefits.

 

Q. Is it an Employer’s responsibility to ensure that members receive partner nomination forms?

A. Employers should make members aware of the TPS changes including the introduction of partner benefits.

 

Q. How is the new average salary calculated?

A. An example of how the average salary calculation using the best 3 consecutive revalued earnings in the last 10 years before retirement can be found in the section headed Calculating Retirement Benefits in the Employers’ Guide.

 

Q. How is pensions increase applied to average salary?

A. Details of how pensions increase factors are applied to the 10 year average salary calculation can be found in the section headed Calculating Retirement Benefits in the Employers’ Guide.

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Estimates of Retirement Benefits Queries

Q. Will additional pension be shown separately on EORB’s?

A. Yes, these are a separate benefit from the teacher’s main TPS benefits.

 

Q. Are index linking figures available for Employers to enable them to provide estimates for their members?

A. Pensions Increase factors can be found in Employer Guide in Appendix 6: Pensions Increase.

 

Q. Will mixed service pensions be shown on EORB’s?

A. Yes

 

Q. When are EORBs issued and who are they sent to?

A. The exercise to issue EORBs starts following the receipt and processing of annual return submissions. This means that the earlier accurate returns are received the earlier TP are able to issue EORBs. ‘Real time’ EORBs are available to members on the website. TP issue EORBS to individual establishments to distribute to the members.