Teachers' Pension Scheme - Transitional protection

chucknorris

Regarding the forthcoming revisions to the Teachers Pension Scheme (TPS) being introduced in 2015 I am unsure of how they affect me. I was 54 years and 3 months old in April 2012, so 10 years and 9 months away from Normal Pension Age (NPA). Anyone up to 10 years away from NPA can still retire and receive their full pension at 65 years old due to ‘transitional protection’.

There is however some transitional protection offered to anyone who is between 10 and 13.5 years away from NPA in April 2012. But from what I have read it seems that my NPA will still increase to 66 years old. But when I called the TPS this morning they couldn't answer my query which was:

Because I am offered 'some' transitional protection because I was within 3.5 years of 10 years from retirement will I receive part of my pension at 65 years old, or will I be protected in some other way?

Does anyone know the answer to this?

ExBT_Bob

Your NPA is 60 on the old scheme (NPA 60) and 65 on the 'new'. Members of TPS can draw the 'old' pension at 60 without reduction. The new pension can be left until 65, or if preferred can be drawn with the 'old' pension at 60 with actuarial reduction.

In fact, in your specific case (assuming you are a member of the old NPA 60 Scheme), as you are 54 and within 6yrs of 'old' NPA (60), under the transitional protection you won't move to the new one at all. You can retire on your pension at 60 without reduction.

http://www.nasuwt.org.uk/Whatsnew/NASUWTNews/Nationalnewsitems/NASUWT_009160

ExBT_Bob

Transitional Protection - Headline policy features



It is proposed thattransitional protection will be provided to those within 13.5 years of theirNPA on 1st April 2012, as set out below.

All members in thecurrent NPA 60 scheme who are aged 50 and over on 1st April 2012,and all members of the current NPA 65 scheme who are aged 55 or over on 1stApril 2012 would retain their existing pension entitlements (i.e. they wouldremain in their current existing scheme) until they draw their benefits orbecome entitled to do so (other than by drawing phased retirement benefits). In the event that they were subsequentlyre-employed, future service would accrue benefits in the reformed TPS.

Members of the NPA 60scheme who are aged between 46½ and 50 on 1st April 2012 wouldremain in the current scheme on a tapered basis, i.e. a member who was 49 yearsand 11 months on 1st April 2012 would retain membership of theirexisting scheme until 1st February 2022 (by when they would be 59years and 9 months), and from that date they would start to accrue serviceunder the reformed scheme. A member whois 49 years and 10 months on 1st April 2012 would remain in theexisting scheme until 1st December 2021. This taper would continue on a linear basisuntil members who are 46 years and 7 months on 1st April 2012 remainin the existing scheme until 1st June 2015. Those aged 46½ or younger would all move tothe reformed scheme from 1st April 2015

Members of the NPA 65scheme who are aged between 51½ and 55 on 1st April 2012 wouldremain in their current scheme on the same tapered basis as above, but all theages quoted would be 5 years greater, e.g. a member who is 54 years and 11months on 1st April 2012 would remain in the existing scheme until 1stFebruary 2022.
This approach to the 10year protection honours the CST’s objective, by ensuring that these members donot see any change to when they can draw their benefits or the level ofbenefits that they will receive. Theapproach to tapering ensures that those closest to age 50 on 1stApril 2012 will receive almost the same level of protection as those who areover age 50 and that the protection is reduced evenly for younger members untilit reaches zero protection for those aged 46½.

chucknorris

ExBT_Bob wrote: »

Your NPA is 60 on the old scheme (NPA 60) and 65 on the 'new'. Members of TPS can draw the 'old' pension at 60 without reduction. The new pension can be left until 65, or if preferred can be drawn with the 'old' pension at 60 with actuarial reduction.

In fact, in your specific case (assuming you are a member of the old NPA 60 Scheme), as you are 54 and within 6yrs of 'old' NPA (60), under the transitional protection you won't move to the new one at all. You can retire on your pension at 60 without reduction.

http://www.nasuwt.org.uk/Whatsnew/NASUWTNews/Nationalnewsitems/NASUWT_009160

My normal pension age is 65 and as I said in my OP it seems that my NPA will change to 66, but what I do not know is how the transitional protection will protect me?

I am guessing that I will be able to retire at 65 with a 'reduced' actuarial adjustment (and this reduction will form the basis of my protection). But I would like to know for sure to eliminate the guesswork.