Karl has increased his benefits by transferring into the Teachers’ Pension Scheme his previous benefits from a private sector scheme.

In career average and while he is in service, he can make purchases of additional pension and also has the choice to pay higher contributions to purchase a faster accrual rate or buy out. These flexibilities are subject to an overall maximum limit.

Additional pension

While he is in service Karl can purchase additional pension, he can buy it for just himself or for himself and his partner or spouse. Karl can pay for it by a lump sum or having deductions taken monthly from his salary.

Faster accrual

Karl can make an annual election to purchase faster accrual. He needs to make an election within one month of taking up employment. In future years Karl needs to make his election before the end of March each year. The accrual rates Karl can choose from are 1/55th, 1/50th or 1/45th.

Buy out

If Karl wants to purchase buy out he has six months from taking up employment to decide, after that he cannot elect to purchase this flexibility. Buy out is where a member, like Karl, who has an NPA over 65 in the career average arrangements and wants to take his benefits before his NPA, can pay extra contributions to reduce the adjustments that will be made to his benefits.