GMP uprating

polymaff

I've been receiving a Teachers' Pension (which is contracted out) for several years now. I reached my State Pension Age 4 months ago - but have chosen to defer (i.e. not to apply) - indefinitely. I've just received details of the Teachers' Pension to be paid for 2014/15 and it includes, for the first time a breakdown of the pension in terms of Scheme/Excess, Pre 1988 GMP and Post 1988 GMP - with the Pre-1988 GMP showing no increase over last year's figure.

My question is - whilst I defer my state pension, isn't Teachers' Pensions committed to uprate that pension as it has previously until I choose to receive my state pension? (and only then be permitted to not uprate the Pre 1988 GMP)

(Naturally I've discussed this with Teachers' Pensions and they refer me to DWP - who refer me to Teachers' Pensions etc. etc.)

kidmugsy

I know there is (or at least can be) an interaction between final salary pensions and State Retirement Pension. I suppose there's a fair chance that you've had the bad luck to deal with someone incompetent at TPS. I did to begin with at my scheme until someone more senior stepped in and put it right. Not that I ever understood the detail, mind.

greenglide

Does the plan do anything similar to :--

Your Guaranteed Minimum Pension (GMP) relating to service prior to 6 April 1988 will be
increased in line with inflation. These increases will be paid by the State and added to your
basic State pension.
• Your GMP relating to service from 6 April 1988 will be increased with inflation. Increases up to
3% each year will be paid by the Plan. Any increases above 3% will be paid by the State from
State Pension Age and will be added to your basic State pension

I believe that some public sector pensions tend not to do this (Civil Service?) and simply give a flat rate percentage increase irrespective of the GMP.

The scheme will not (I assume) be aware that you are deferring your SP and would inflation proof the GMP where appropriate.

DWP will calculate the pension you would have received had you not differed and calculate the increments to be paid based on this. This calculation will take into account any incremental increases due to the inflation proofing of the GMP where appropriate.

Note a pre 88 GMP should never increase as that is totally inflation proofed by the state. The post 88 GMP should only increase by up to 3% and the rest is by the state.

Drp8713

Teachers will limit your pension increase as above until they receive an AP less than GMP notification.

These are always delayed and usually turn up at the same time as the AP greater than GMP notification, in your case when you take your state pension

Teachers should then pay you arrears.

RichandJ

polymaff wrote: »

I've been receiving a Teachers' Pension (which is contracted out) for several years now. I reached my State Pension Age 4 months ago - but have chosen to defer (i.e. not to apply) - indefinitely. I've just received details of the Teachers' Pension to be paid for 2014/15 and it includes, for the first time a breakdown of the pension in terms of Scheme/Excess, Pre 1988 GMP and Post 1988 GMP - with the Pre-1988 GMP showing no increase over last year's figure.

My question is - whilst I defer my state pension, isn't Teachers' Pensions committed to uprate that pension as it has previously until I choose to receive my state pension? (and only then be permitted to not uprate the Pre 1988 GMP)

(Naturally I've discussed this with Teachers' Pensions and they refer me to DWP - who refer me to Teachers' Pensions etc. etc.)

Afraid not. GMP payment age (GPA) is still 65 male, 60 female, so schemes are still required to split out GMP at GPA & apply increases to it in accordance with their Rules.

xylophone

https://www.teacherspensions.co.uk/~/media/Employers/Tiered%20Contributions/27732_CapitaTeachersPension_Annual_Update_2014_lr.pdf?dmc=1&ts=20140416T1450130384https://www.teacherspensions.co.uk/~/media/Employers/Tiered%20Contributions/27732_CapitaTeachersPension_Annual_Update_2014_lr.pdf?dmc=1&ts=20140416T1450130384

Page 3

When you reach State Retirement
Age, the annual increases applied to your pension are calculated differently due to GMP rules.

The GMP consists of two elements:

• For service up to 5 April 1988, the government will pay any pension increase (PI) on the GMP element with your State Pension. This part does not attract increases from the Teachers’ Pension Scheme.

• For service after 5 April 1988, PI (up to 3%) is paid by the
Teachers’ Pension Scheme. The balance (over 3%) will be
paid by the government with your State Pension.

With certain exceptions, any teacher’s pension where there
is no GMP included as part of the pension will receive the full
increase and will be paid by the Teachers’ Pension Scheme
each year. At the point that the Teachers’ Pension Scheme receives
confirmation of your GMP from HM Revenue & Customs (HMRC),
we’ll adjust your pension.

Before 6 April 2010, the GMP age and State Pension Age (SPA) was 60 for women and 65 for men. This has now changed for women born after 5 April 1950 and men born after 5 April 1953. In these instances, where applicable, the scheme will temporarily increase the GMP element previously included in your State Pension until you reach your new SPA. From SPA, your pension will be split as set out above, and will be shown on your first pay advice after 7 April 2014 if you’re affected.

If you defer your State Pension please inform us as this may
affect the increases applied to your pension.

The above might be of interest.

RichandJ

xylophone wrote: »

https://www.teacherspensions.co.uk/~/media/Employers/Tiered%20Contributions/27732_CapitaTeachersPension_Annual_Update_2014_lr.pdf?dmc=1&ts=20140416T1450130384https://www.teacherspensions.co.uk/~/media/Employers/Tiered%20Contributions/27732_CapitaTeachersPension_Annual_Update_2014_lr.pdf?dmc=1&ts=20140416T1450130384

Page 3

When you reach State Retirement
Age, the annual increases applied to your pension are calculated differently due to GMP rules.

The GMP consists of two elements:

• For service up to 5 April 1988, the government will pay any pension increase (PI) on the GMP element with your State Pension. This part does not attract increases from the Teachers’ Pension Scheme.

• For service after 5 April 1988, PI (up to 3%) is paid by the
Teachers’ Pension Scheme. The balance (over 3%) will be
paid by the government with your State Pension.

With certain exceptions, any teacher’s pension where there
is no GMP included as part of the pension will receive the full
increase and will be paid by the Teachers’ Pension Scheme
each year. At the point that the Teachers’ Pension Scheme receives
confirmation of your GMP from HM Revenue & Customs (HMRC),
we’ll adjust your pension.

Before 6 April 2010, the GMP age and State Pension Age (SPA) was 60 for women and 65 for men. This has now changed for women born after 5 April 1950 and men born after 5 April 1953. In these instances, where applicable, the scheme will temporarily increase the GMP element previously included in your State Pension until you reach your new SPA. From SPA, your pension will be split as set out above, and will be shown on your first pay advice after 7 April 2014 if you’re affected.

If you defer your State Pension please inform us as this may
affect the increases applied to your pension.

The above might be of interest.

I stand humbly corrected.

xylophone

I stand humbly corrected.

Not at all - the GMP age for women is still 60 and for men 65 but the TPS (along with other public sector schemes (I don't know about private), is making the special arrangements outlined above in respect of the GMP and scheme pension.

And you note the may in respect of SP deferral - it does not say will and neither does it explain what the effect might be.

RichandJ

xylophone wrote: »

Not at all - the GMP age for women is still 60 and for men 65 but the TPS (along with other public sector schemes (I don't know about private), is making the special arrangements outlined above in respect of the GMP and scheme pension.

And you note the may in respect of SP deferral - it does not say will and neither does it explain what the effect might be.

None of the private ones I administer have done this, hence why I jumped in, although some have allowed any bridging pension previously payable to the old SPA to continue to the new one. No allowance for deferring SP though - for a private scheme that's an individual's choice alone.

polymaff

xylophone wrote: »

If you defer your State Pension please inform us as this may affect the increases applied to your pension.

Thank you all for your replies - and sorry for the delay in acknowledging all your efforts. "Instant email notification" is selected - but not working, it seems.

It was the above - splendidly ambiguous - quotation and a telephone conversation with TPS that prompted me to write to TPS - yes, they demanded a physical letter - to ask them to take note that I had chosen to defer and to act accordingly.

After some weeks delay TPS wrote asking for "documentary evidence" of my deferral. I replied:

"I have no documentary evidence to share with you, other than my written statement of the 14th April 2014, as the process of deferring a State Pension at State Pension Age is simply not to apply for it. (ref: Document DWP024, April 2014) "

Four weeks later I re-sent the above - pointing out that they had not yet replied.

Last week I sent TPS:

"I note [on the TPS website] that you have marked a task complete as of 14/5/14. I last received a communication from you dated 22/4/14 on 2/5/14 and replied immediately. I am still awaiting a response - and so do not consider this issue closed at all.

Please respond ASAP."

Needless to say, I'm still waiting. What an awful organisation.

Obviously I hope that the reduction I've seen in my teachers' pension since reaching my SPA will be restored until I actually claim my state pension. Has anyone with a teachers' pension, and who has deferred their state pension, managed to achieve this?

xylophone

reduction I've seen in my teachers' pension

You did not mention a reduction?

Do you mean simply that your pre 88 GMP as shown on your pension advice has not increased?

http://www.uss.co.uk/Guides%20and%20Booklets/Retiring%20from%20the%20Scheme%20FS.pdf

Is the information on page 23 relevant to your ongoing query with the TPS do you think?