Answer:

You'll be provided with information to enable you to decide if you wish any benefits containing remedy period service to be paid as career average or final salary. There'll be no change to benefits already in payment until you confirm a decision.

Answer:

What happens to any flexibilities you have taken will be dependent on the choices you need to make.

This will be in relation to flexibilities elections already taken out during the remedy period and for making new elections in the career average scheme.

We'll contact you regarding your flexibilities options after 1 October 2023. However, for more information on what these may be, visit the flexibilities page on our website.

Answer:

When making your choice between final salary and career average for any service during the remedy period (1 April 2015 -31 March 2023), your pension would only reduce if you choose the lower option.

Answer:

No, as you go through your career your Benefit Statement - RSS will continue to update reflecting any new teaching service/change in circumstances. You don't need to make a decision about the two choices until you submit your retirement application.

Answer:

If you're affected by Transitional Protection, from 1 October 2023 your affected service, from 1 April 2015 to 31 March 2022 (the 'remedy period') we've replaced your online Benefit Statement with an Benefits Statement - RSS. This shows you both the final salary and career average options for the remedy period and the choice you'll need to make at retirement.

Answer:

Your benefits will remain to your credit and will be added to benefits you earn in the future. If you take up other employment outside teaching it may be possible to transfer that credit to your new pension provider.

If you leave your pension benefits in the Scheme they will be Index-linked from the date you leave. If you have career average benefits they will be increased each year by the amount in the Treasury Order each year.

If you return to pensionable employment any future career average benefits earned after your return will increase by Treasury Order plus 1.6%, as long as you remain in service.

If you're out of service for five continuous years or less, your previous benefits will also increase by Treasury Order plus 1.6%. If you're out of service for more than five continuous years your previous benefits will continue to be increased by Treasury Order only after you return to pensionable employment.

Please check your Benefit Statement to see year on year what you have accumulated in your pension.

Answer:

If your service is pensionable, you'll get further retirement benefits on application. These will be based on your extra pensionable employment and the salary that you earn. This is known as Additional Service After Retirement (ASAR).

If you're re-employed after taking retirement benefits, other than Phased Retirement, you must have one year of ASAR to qualify for further benefits. If you're working part-time, the whole period counts towards your qualifying service, including the days you don't work. However, your benefits are based on the pensionable earnings you receive.

You don't have to claim your benefits immediately. You stop ASAR if you plan to do further work as all your ASAR benefits will be added together when you finally decide to claim them. If you have less than one year's service (365 days), and don't intend to continue in the Teachers' Pension Scheme, your contributions and interest will generate an annuity to add to your existing pension.

Unless you were in ASAR immediately before 1 April 2012 any service undertaken after 1 April 2015 will be in the career average scheme. Following 1 April 2022 any new contributions will be paid into the career average scheme. The standard retirement types, Age, Premature, Early (Actuarially Adjusted), Phased and Ill-health, apply to ASAR benefits.

Answer:

Your final salary pension will be affected if your pension and re-employment earnings exceed your salary of reference*. Any career average pension that you're receiving will not be affected.

When we calculate the value of your pension, we use your final salary pension, any career average pension and also include any mandatory and discretionary payments that your employer is paying at your point of retirement.

*Your salary of reference is the highest salary in the average salary period (find out more about the average salary period here), as calculated at retirement. Your salary of reference is index-linked, which means that it will be adjusted each year in line with relevant pension increase factors. It is therefore important to note that your salary of reference may change.

Your index-linked salary of reference minus your annual rate of pension is the limit that your earnings may reach in a tax year before your final salary pension is affected. If your earnings in the tax year exceed that limit, your final salary pension will be suspended to prevent any overpayments being made to you which you later have to pay back.

Example

Beth applied for and received her final salary retirement pension in 2019. Her pension was valued at £25,000 per year. Her salary of reference at the time of her retirement was £40,000.

Two months after her retirement, Beth decided to go back into teaching employment on a part time basis. Her pensionable earnings whilst she worked were £16,000 per year.

As Beth's salary of reference is £40,000, her combined pension and pensionable earnings must be assessed against this amount.

£25,000 + £16,000 = £41,000.

As the value of her combined pension and pensionable earnings is more than her salary of reference, Beth's pension will need to be abated (suspended) for that tax year.

Answer:

When you return to the Scheme you'll be treated as a new starter and will enter into the career average scheme. Transferring your service into the Scheme doesn't restore your original service.

Answer:

If you're granted Ill-health Retirement within one year of commencing payments, your Additional Pension contributions will be refunded. However, if you're granted Ill-health Retirement more than a year after commencing payment, you'll receive an unreduced Additional Pension. Faster Accrual is included as part of the career average benefits, while Buy Out isn't applicable when taking Ill-health retirement as benefits are not actuarially reduced (but note that any contributions for Buy Out aren't refunded).