New Entrants:

The revisions to the TPS agreed for new entrants from 1 January 2007 include:

• Normal Pension Age (NPA) of 65.
• Minimum Retirement Age (MRA) of 55, except on grounds of ill health.
• Pension based on 1/60th of salary for each year of pensionable service with the flexible option to take up to 25% of ‘fund value’ after conversion as a tax-free lump sum by surrendering £1 of annual pension for £12 of lump sum.
• Benefits payable to nominated dependent partners (opposite and same sex).
• Spouses’, surviving civil partners’ and nominated dependent partners’ pensions paid for life.
• Ill-health retirement package – tiered approach with a higher level of benefits for total incapacity and lower level of benefits for partial incapacity.
• The better of the last year’s salary, or the re-valued (in line with the RPI) average of the best three consecutive years' salary in the last ten years of service to be used for calculating benefits at retirement.
• A facility to purchase up to £5,000 of added annual pension. This maximum increases to £5,200 with effect from 1 April 2008.
• A death grant of three times salary.
• Phased retirement arrangements. These would enable TPS members, under defined circumstances, to continue working as a teacher within the TPS while drawing down some or all of their accrued pension benefits.
• Actuarial enhancement for those who continue in work beyond NPA of 65 without accessing their pension benefits.
• Automatic membership of the scheme for new entrants whether employed in a full-time or part-time capacity. It is still possible to opt out of the scheme. It may be possible for you to submit an election to opt out of the scheme via My Pension Online (our secure website).