Member types How benefits are built up is dependent on the scheme the member falls under.

Final Salary

From 1 April 2015 members have been transitioning from final salary to career average. The final salary scheme closed on 31 March 2022 to new contributions. Any member still in that scheme moved over to the career average scheme on 1 April 2022. Any benefits already built up will be retained in that scheme.

If a member has a Normal Pension Age (NPA) of 60 then the calculation for their final salary pension is:

• A pension calculated by multiplying your service by your average salary and then dividing by 80; and
• A lump sum equal to three times your pension.

If they’ve final salary benefits and their NPA is 65, the calculation is:

• A pension calculated by multiplying your service by your average salary and then dividing by 60.

Career average

From 1 April 2022, , all active members will accrue benefits in the career average scheme.

Benefits are based on 1/57th of all pensionable earnings each year (including overtime) and are collectively added together over the course of a member’s career to build up their total pension pot.

The member’s cumulative accrued pension is also revalued each year, the percentage of which is based on whether the member is active or deferred.

Active members have an indexation rate* + 1.6%, and a deferred member’s benefits are increased in line with annual Pensions Increases.

*This is based on a Treasury Order but is expected to match the rate of the Consumer Price Index (CPI) in the preceding September.

Members who leave and return to service after a gap of more than five years may have a combination of active and deferred indexation.

Our member factsheet ‘Understanding how you career average pension builds up (PDF, 145 KB) (This link opens in a new window)’ has more examples of how this might work.

The Normal Pension Age (NPA) for members within the career average scheme is either the member’s State Pension Age (SPA) or 65, whichever is the later date.

Member’s can retire earlier than their SPA or NPA, but benefits will be reduced to reflect the fact that they’re being paid for longer. If the member chooses to retire after their NPA their benefits will be increased to reflect that they’re being paid later.

Member’s can find out their SPA by visiting www.gov.uk/calculate-state-pension (This link opens in a new window).

Members within the career average scheme will have immediate access to flexibilities.

Final salary link

For members who’ve benefits in both final salary and career average schemes and don’t go on to have a continuous break in pensionable service of more than five years, we’ll use the salaries they’re earning in career average to calculate the average salary used in determining final salary benefits.

Continuous UK Public Sector Pensionable Service and Salary Link

If a member with final salary link protection decides to leave the Teachers' Pension Scheme but returns within five years, the member will retain their final salary link.

If a member returns after a gap of more than five years, they’ll lose their final salary link unless they can demonstrate that they’ve been employed in continuous pensionable public service in the UK, without a break of more than five years (in the intervening period).

If a member leaves a scheme (Scheme A) and joins another public sector pension scheme (Scheme B) but wishes to retain their salary link with final salary benefits, they’ll be required to transfer their benefits into Scheme B (assuming Scheme A and B are club schemes, there’s not been a gap of more than five years and that the transfer is completed within 12 months of joining Scheme B).