Rhys - Pensioner returning to work

ID Card

Date of Birth: 1 November 1953

Date entered the Scheme: 1 September 1978

Current NPA: 60

Age on 31 March 2012: 58

Member type at April 2015: Retired

  • Answer:

    When Rhys returns to work on 1 September 2015, his career average NPA will be 65.

  • Answer:

    Rhys has already taken his final salary benefits. He will now build up career average benefits which accrue at a rate of 1/57th of his salary each year. Those benefits will be subject to indexation each year. Rhys will not receive a lump sum in respect of his career average benefits, but he can convert part of his pension to a lump sum.

  • Answer:

    When Rhys re-enters service in career average, he can make purchases of additional pension. He can also pay higher contributions to purchase a faster accrual rate. He cannot purchase buy out as his NPA is not over 65. These flexibilities are subject to an overall maximum limit.

    Additional pension

    If Rhys decides to purchase additional pension he can buy it for just himself or for himself and his partner or spouse. He can pay for it by a lump sum or having deductions taken from his salary.

    Faster accrual

    Rhys can make an annual election to purchase faster accrual. He needs to make his election before the end of March each year, but as he is re-entering service after the start of the year he only has one month to make an election , i.e. he must make his election by 1 October 2015.The accrual rates he can choose from are 1/55th, 1/50th or 1/45th.

  • Answer:

    If Rhys leaves before reaching age 65 he can transfer his career average benefits to another scheme or leave them in the Teachers’ Pension Scheme and claim them when he reaches 65. He cannot receive a repayment of his contributions as he is already in receipt of benefits.

  • Answer:

    If Rhys become ill and cannot teach anymore, he may be able to receive his career average benefits straight away. If Rhys is unable to undertake any work he may have his benefits enhanced. The enhancement is calculated using half of the service Rhys could have completed before reaching NPA and his salary at retirement.

    Rhys may decide not to apply for ill-health benefits but agree with his employer to make adjustments to his working life by either reducing his responsibilities or his working hours to try to accommodate his illness. Rhys can still apply for ill-health benefits if this arrangement does not work. If he is then granted enhancement it will be calculated using his salary before the adjustments took effect.

  • Answer:

    Rhys can retire before reaching 65 by taking Actuarially Adjusted Benefits, which will be reduced for the rest of his life to take account of the fact that they are being paid for longer.

    If Rhys’ employer decides to grant him premature retirement he will receive unreduced benefits, but part will be paid by his employer.

    If Rhys continues to work until he reaches age 65 and provided he leaves service, his benefits will be unreduced.

  • Answer:

    Rhys can take phased retirement which means he can still work and receive some of his career average benefits, provided there is a reduction of at least 20% in his salary. Rhys can do this three times before finally deciding to retire.

  • Answer:

    As Rhys has returned to work after retiring on or after his final salary NPA then his final salary benefits may be affected. If Rhys’ pension, plus his earnings exceed his salary of reference then his final salary pension will be stopped for the remainder of the tax year. Rhys’ salary of reference is the highest salary used in his average salary.

    If Rhys retires again after his period of re-employment and at later date then becomes re-employed, his career average pension will be unaffected but his final salary benefits may be affected. If all of Rhys’ pensions (final salary and career average added together), plus his earnings exceed his salary of reference then his final salary pensions will be stopped for the remainder of the tax year.

    Each time Rhys is re-employed he will accrue further career average benefits.

  • Answer:

    If Rhys dies within five years of retirement a death grant will be also payable. The death grant is the value of five years worth of pension, less the value of the pension that has been paid.

    If Rhys dies while he is re-employed an in service death grant will also be paid. This is three times his salary, less any lump sum previously paid.

    If Rhys dies his spouse or partner will receive a short pension for three months based on his pension, plus his salary. There will be a long term family pension based on the final salary service he had accrued times his average salary, divided by 160. In addition there will be a long term pension payable based on his career average service. This is of 37.5% of Rhys’ accrued pension plus enhancement. The enhancement is calculated by using half of Rhys’ prospective service to his NPA of 60 multiplied by 1/57th of his annual rate of pensionable earnings when his dies.


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