Teachers' Pensions

Non pensionable pay

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The following payments are not pensionable regardless of the arrangements that a member is in.

  • Travelling or Expenses Payments
  • Any payment in lieu of notice to terminate a contract
  • Any payment to cover the loss of any contractual holiday pay
  • An honorarium payment
  • Any payment in respect of duties that are not part of their duty as a teacher

Some members who joined the Scheme between 1 June 1989 and 1 April 2008 may be affected by an earnings cap. Some may have elected to have this earnings cap lifted and previous ’capped’ service reduced. However, since 1 April 2008, any member whose salary was above the earnings cap, or any new entrant, will have employee and employer contributions deducted based on full salary.

Any final salary benefits including any paid to transition members with a final salary link will still have the restricted salary provision applied. If the pensionable salary in the final three years of pensionable employment was increased by more than £5,800 or 10%, the increase in that salary or salaries will be restricted to £5,800 or 10% whichever is the higher. This figure is reviewed each year in line with factors provided by the HM Treasury.

Where this restriction applies, any contributions not used in the calculation of Average SalaryThe salary used to calculate a final salary pension. This is calculated on the most beneficial of the following; either the last 365 days salary or the best 3 years’ salary over the previous 10 years (revalued where there has been a change in salary in the 3 year period). If a member has undertaken part-time employment, their full-time equivalent salary will be used in the calculation, but the pensionable service will be based on the part-time hours. will be refunded.

Last Updated: 06/03/2017 16:53

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