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A career average member can elect to pay higher contributions to earn a higher pension. The normal rate of accrual or growth in pension is based on 1/57th of their earnings for that year.
Members can pay higher contributions so that the growth in their pension each year can be 1/45th, 1/50th and 1/55th of their earnings for that year. Contributions are on a percentage basis.
Example:
Accrual Rate Pension Earned
Each election lasts for one financial (Scheme) year. An election begins on the 1 April and ends on 31 March of the following year. An election must be made in the Scheme year before the member wants it to take effect. This would ideally be before the end of January to allow us and you time to process the election before 1 April. You will receive notification via the Employer Portal to advise you to make the deductions. If a member starts a new employment mid-year they can make an election for the remainder of that year, but they must make it within a month of entering service. But please note that if an election made earlier in the Scheme year was with a Local Authority (LA) and wasn’t specific to an establishment, the election will apply to any new employment with the same LA in that Scheme year.
You will need to make any new members of career average aware that if they wish to elect for faster accrual, they must make an election when they take up the post. Faster accrual elections are only available to career average members. Teachers' Pensions will contact tapered protection members, either directly or through their employer, to advise them of their choices when entering the career average arrangement.
Stay up to speed with the options available to members.
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We've developed a Flexibilities calculator for our members.
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Download the career average flexibilities form.
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