Understanding Your TPS Benefit Statement
Details of your employment are collected annually from your employer(s) using a census date of 31 March. These are reflected in your ‘Pension Estimate’.
Personal details
This is the information we hold about you. Please notify us if any information is incorrect.
There is a secure facility on the scheme website for updating your personal details. You access this through the TP website and follow the link My Pension Online.
"In Pensionable Service" indicates that your employment record shows that you are a serving teacher or in a capacity covered by the Scheme Regulations.
"Deferred" means that our records currently show you as not in pensionable teaching employment.
Pension elements
Average salary for pension benefits – the most advantageous amount based on your teaching service and salary record. More details can be found on the Factsheet – Average Salary available on the website or from your employer.
Pensionable service accrued – the total number of years and days accumulated in your pension record to 31 March. This includes all pensionable teaching service plus any transferred-in service credited to your record and any additional periods that you have purchased in the pension scheme. It does not include any Additional Pension or Additional Voluntary Contributions.
Transferred-in service – any period of service added to your record as a result of transferring in credit from another pension arrangement. If you previously transferred out your TPS benefits to a personal pension arrangement and then back again carefully check that your record is accurate.
Periods of Past Added Years (PAY) – the service credited to your pension record through the arrangement to purchase PAY. If you are paying for your PAY by an instalment arrangement you will need to complete that for the full amount of service to be credited to your record
Periods of Current Added Years (CAY) – the service period currently paid for under your CAY arrangement. Where you have an ongoing arrangement the whole of the period will be credited to your record after the final payment is received.
Effective date of part-time election to join the TPS – as a part-time teacher, the date(s) you elected for your part-time service to be pensionable.
Effective date of opting-out of the TPS – the latest date you elected to cease your membership of the TPS.
Effective date of opting-in to the TPS – the latest date you elected to re-join the TPS.
Amount of Additional Pension purchased – the amount of additional annual pension you have purchased or are purchasing. Where you are paying by instalments the completion date for the arrangement is also shown. The additional pension amount is not included in the annual pension shown in ‘Retirement benefits’.
Back to the topRetirement benefits
Annual Pension – the current value of your annual pension. If you are in pensionable teaching employment it will continue to grow as you add more service to your record and your salary increases. If you are no longer in pensionable service this amount will grow in line with factors supplied by HM Treasury. Benefits will be reduced if they are taken before Normal Pension Age.
Standard Tax Free Lump Sum – an entitlement for those members who were in service before 1 January 2007. This is a one-off tax free payment normally 3 times the value of your annual pension. You can increase this amount by converting part of your pension when you apply to retire. If you choose to do this, it will permanently reduce your pension
Members joining the TPS from 1 January 2007 have no automatic entitlement to a tax-free lump sum. However, when you apply for your retirement benefits you will have the opportunity to convert part of your pension to generate a lump sum. Selecting this arrangement will permanently reduce your pension. More details can be found in the Factsheet – Retirement Lump Sum available on the website.
If you wish to produce illustrations of how your pension will be reduced by choosing to increase or generate a lump sum you can do this by accessing the Pension and Lump Sum ready reckoner/modeller available in the Calculators section of the website
Lifetime Allowance (LTA) – the percentage shown here is the amount your teacher’s pension represents of the total allowable value of the tax privileged pension you can have from all sources before you incur an additional tax charge.
Back to the topDeath in service benefits
In Service Death Grant – the amount payable should you die in-service before retirement which is currently three times your average salary. An ‘In-service’ death grant is also paid if a member dies within a year of leaving pensionable employment due to incapacity. A member is in pensionable employment provided they receive at least half pay from their employer. Otherwise an "out-of-service" death grant is payable.
Nomination for in-service Death Grant nomination made –
Yes – Death Grant will be paid to your nominee (this can be your nominated partner);
No - In the absence of a nominee any Death Grant will be paid to your spouse or civil partner
PLEASE ENSURE YOU REVIEW YOUR NOMINATION REGULARLY SO THAT IT REFLECTS YOUR PERSONAL CIRCUMSTANCES.
Back to the topTeaching Service History
Your employment record has been compiled from information provided by your employer(s) as at the 31 March each year and is correct to the best of our knowledge. If you identify any errors or omissions, please contact the relevant employer, ask them to investigate and, where necessary, inform Teachers’ Pensions about any changes to be made.
Back to the topYour State Pension Forecast
The amount of State Pension shown is a forecast of what you could get at State Pension Age and has been provided by the Department for Work and Pensions (DWP). The amount you receive when you reach State Pension Age may be different because of changes in your circumstances or changes in the law. If there is no State Pension information entered this will be because:-
- You have instructed us not to collect the information;
- DWP has been unable to provide the information; or
- You are already in receipt of your State Pension.
Important Information It is important you read the notes below.
- The “Current State Pension” estimate is based on your National Insurance record at the date of the forecast.
- The “Future State Pension” estimate is based on the assumption that you will pay, be treated as paying or be credited with full-rate National Insurance contributions from the date of the forecast until you reach State Pension age. If, for any reason this assumption is wrong, the estimated amount above could be too high.
- If you are a married woman who has chosen to pay the reduced-rate of National Insurance – sometimes called “the small stamp” - your “Future State Pension” amounts are based on the assumption that you will continue to pay reduced-rate contributions.
- The amounts shown are based on the current State Pension rules and the rates in payment at the time of the forecast. They do not take into account any future changes to State Pension rates or to the law relating to State Pensions that may occur before you reach State Pension age.
- The Government is reviewing the current timetable for increasing the State Pension age from 65 to 66. No decision has yet been made as to how this timetable will change. Any change would require the approval of Parliament.
- You may be able to pay voluntary National Insurance contributions for certain years. See ‘Your pension statement explained’ leaflet for further details.
- Your basic State Pension may be more than the amount shown. This is because the Government have announced a “triple guarantee” about how it will increase the basic State Pension in the future. From April 2011, basic State Pension will be increased every year by the higher of the growth in earnings, prices, or 2.5%. This only applies to the basic State Pension. This does not apply to the additions to State Pension.
- From 6 April 2012, if you are a member of a contracted-out defined contribution pension scheme (also called a money-purchase scheme), you will cease to be contracted out and will start to build up additional State Pension instead. This change does not affect the estimated “Current State Pension” amount shown above. However, if you are currently in a contracted-out defined contribution pension scheme, the amount of additional State Pension included in the “Future State Pension” does not include any extra additional State Pension you may build up from 6 April 2012 because you are no longer contracted out. Pension Forecasts will reflect this change when National Insurance records have been updated.
- The amount of additional State Pension you actually receive at State Pension age may be different from that shown in your forecast, especially if you have been or remain a member of a contracted-out pension scheme.
- Sometime between 2012 and 2015, additional State Pension will gradually become a simple, single-rate weekly top-up to the basic State Pension.
- If you receive more than one State Pension forecast, do not add the amounts together. Always use the more recent forecast you have received.
- The amounts do not include any other income your household may get from income-related benefits such as Pension Credit.
- If you think any of the information in this forecast is wrong, tell the DWP by telephoning 0845 3000 168
The leaflet ‘Your pension statement explained’ (CPF5) gives more information about your State Pension. For a copy of this leaflet provide , please visit: www.direct.gov.uk/en/Diol1/DoItOnline/DG_182356 or telephone 0845 7313233
Textphone 0845 6040210 to ask for a copy.