Factors and Guidance

This section has been created so you can easily access all information required regarding the various factors used within the Teachers' Pension 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may lead to differences between the final calculation and estimates and quotes based on older factors that have been superseded at the time of calculation.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.
• Late retirement from Career Average section.
• Lump sum conversion to pension (inverse commutation) for Final Salary and Career Average sections.
• Trivial commutation for Final Salary and Career Average section pensions
• Capitalising the cost of premature retirement compensation 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/ (This link opens in a new window)

Divorce

• Pensions on divorce
• Pensioner cash equivalents on divorce
• Recovering divorce admin charges from pension

Actuarial valuation

• Actuarial valuation as at 31 March 2016 Report on membership data
• Actuarial valuation as at 31 March 2016 Advice on assumptions