Teachers' Pensions
Factors and guidance

Factors and guidance

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 This section has been created so you can easily access all information required regarding the various factors used within the Teachers' Pensions Scheme.

Please be advised that factors are subject to change. Teachers’ Pensions will use the factor that is in effect at the date of our final calculation, which may lead to differences between the final calculation and estimates and quotes based on older factors that have been superseded at the time of calculation. 

Latest Scheme Factors

The latest factors for all calculations are provided in an Excel document – Latest Scheme Factors. These factors are based on a discount rate of 2.4%.

The scheme actuary is in the process of providing updated guidance and examples using the latest factors. We’ll add this as and when we receive it, while also providing the link to the old guidance for those factor sets for which we have yet to receive an update. Please note that for those factor sets for which only the old guidance is available old factors are used.

Latest Guidance

We have updated guidance and examples, using the latest factors, for the following sets:

Retirement

Early retirement from Final Salary and Career Average sections.

Late retirement from Final Salary section.

Lump sum conversion to pension (inverse commutation) for Final Salary and Career Average sections.

Flexibilities

Faster Accrual in the Career Average section

Additional pension purchase in final salary and Career Average sections.

Trivial commutation for Final Salary and Career Average sections.

Election to buy out the standard reduction (‘AAB buy out’) in the Career Average section

Outstanding contributions in respect of Past Added Years (PAY) and additional family benefit (AFB) contracts in the Final Salary section

Tax

Lifetime Allowance tax charge debits in the Final Salary and Career Average sections

Annual allowance tax charge debits in the Career Average section

Annual allowance tax charge debits in the Final Salary section

Transfers

Cash Equivalent Transfer Value

Cash Equivalent Transfer Value for members over Normal Pension Age guidance

Transfers-in on a non-Club basis

Non-Club transfers in for members over Normal Pension Age guidance

Club Transfers

Club memorandum plus Scheme specifics

Club transfers in the Career Average section

For more information on Club Transfers please visit the website below:

https://www.civilservicepensionscheme.org.uk/members/public-sector-transfer-club/

Divorce

Pensions on divorce

Pensioner cash equivalents on divorce

Actuarial valuation

Actuarial valuation as at 31 March 2016 Report on membership data

Actuarial valuation as at 31 March 2016 Advice on assumptions

Old Guidance and Factors

Until we have received an update to all guidance based on the latest factors the following versions of previously issued guidance can be used, but as all references contained within are to old factors please only use in conjunction with the latest factors.

Retirement

Premature Retirement (using old factors) 

Trivial Commutation (using old factors)

Last Updated: 06/11/2019 15:53

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The latest policy updates and announcements about the scheme and the news that affects it:

Optima Health replaces OH Assist
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