Teachers' Pensions - given up trying to understand.

jshea1571

I swear each time I log into my Teachers Pension it changes.
I'm 45, have paid in 15 years and was originally hoping to log off around 55-60 years of age until they changed everything.

It seems my NPA has swerved wildly from 67 to 60 and I think it is now 60. (However, it depends what you read as I'm a transition member.)

I'm prepared to put in extra cash to try and get my earlier retirement back on track, but I'm bewildered by what I am supposed to do.

There seems to be an 'elective' in which for one year I can elect to pay more. Their email to me said they have no form or process for this nor can they forecast benefits, but that I must soon make a choice to elect or not. (!!)

The AVCs seem to be a better way forward as it suggests I can take them as a lump sum at some point and that I can choose the fund to use. However, there is no point in doing this if I can't redeem them until I am 67. And I am still to work out one way or the other what my NPA is.

According to multiple sources it is 60 for my first (TP) pension and 67 for my second pension (TP), but when I logged in today it is now saying I have a NPA of 60 which threw me again.

If there is ever to be another misselling scandal it will be the TP because I have yet to meet a single transition member who understands what their pension entitlements or options are. All we know is we have to keep on working!

Any advice, even if it is to book an appointment with a professional would be appreciated. Is it really this complicated?

stewie1098

Teacher myself- 52- and definitely going at 55 ! If you are a member of the NASUWT, they offer a free service, where a advisor from a company they are tied in will visit you and explain options. They clearly want you to invest your lump sum with them for a guaranteed percentage !- but just nod, and get a full breakdown of all the other figures.

jshea1571

Thanks Stewie. I'm not in the NASUWT unfortunately.

Some of those in your age band here are saying it pays to retire at 55 rather than wait till 60 if your last ten years includes your best 3 years' wages. It's all madness I'm afraid. Some of them did the DH for a few years then ran for the hills from the workload.

Can't we report them all to the FSA for blindly misleading us?

dunstonh

Can't we report them all to the FSA for blindly misleading us?

The food standards agency doesnt have anything to do with pensions.

If you mean the FCA, then they do not regulate the Govt backed defined benefit pensions. The FCA is more about retail financial services.

If there is ever to be another misselling scandal it will be the TP because I have yet to meet a single transition member who understands what their pension entitlements or options are. All we know is we have to keep on working!

Misselling applies to contracts that are sold and issues that took place at point of sold. The teachers pension is not sold and your issues are not related to when you took it out.

GwylimT

Are you with any union, they should be able to advise on your pension. As its cheap I would be tempted to join just to get clarification.

jem16

jshea1571 wrote: »

I swear each time I log into my Teachers Pension it changes.
I'm 45, have paid in 15 years and was originally hoping to log off around 55-60 years of age until they changed everything.

It seems my NPA has swerved wildly from 67 to 60 and I think it is now 60. (However, it depends what you read as I'm a transition member.)

At age 45 you don't have any protection and will now have moved onto the Career Average scheme as of 1st April.

There seems to be an 'elective' in which for one year I can elect to pay more. Their email to me said they have no form or process for this nor can they forecast benefits, but that I must soon make a choice to elect or not. (!!)

It's called Faster Accrual. Read about it here.

https://www.teacherspensions.co.uk/members/your-scheme/your-working-years/pay-more-to-get-more/career-average-arrangement.aspx

The AVCs seem to be a better way forward as it suggests I can take them as a lump sum at some point and that I can choose the fund to use.

You can do that with any PP/SIPP and it may just give you more fund choices than the AVCs.

However there is also Additional Pension to consider.

However, there is no point in doing this if I can't redeem them until I am 67. And I am still to work out one way or the other what my NPA is.

You would be able to redeem them from age 55 although that may change to 10 years before state retirement age.

According to multiple sources it is 60 for my first (TP) pension and 67 for my second pension (TP), but when I logged in today it is now saying I have a NPA of 60 which threw me again.

For your original pension ( assuming you joined before 2007 ) you can take it at age 60. For the Career Average part you will not be able to take it unreduced before your state retirement age. You can take it earlier by having it reduced actuarially.

If there is ever to be another misselling scandal it will be the TP because I have yet to meet a single transition member who understands what their pension entitlements or options are. All we know is we have to keep on working!

There is no misselling as no selling has taken place.

All the information is on the TPS website. people really need to read up on it.

Any advice, even if it is to book an appointment with a professional would be appreciated. Is it really this complicated?

No it's not complicated as far as understanding your scheme is concerned.

jem16

jshea1571 wrote: »

Some of those in your age band here are saying it pays to retire at 55 rather than wait till 60 if your last ten years includes your best 3 years' wages.

If you leave at age 55 rather than age 60 you will have 5 years less contributions and around a 25% reduction of your pension. I doubt very much that the increased salary would make up that loss.

hjd

Don't necessarily believe everything on the TP website.
My DH is 59, teacher from 1980 till 2007 on the old scheme. He now works in a school but not as a teacher, and has recently joined the LA scheme.
As he is a deferred member of the TP scheme his pension is based on the best 3 consecutive years in the last 10 (or something like that). He went from being full time head of department to part time teacher plus part time admin, then gradually to full time admin.
The TP people give him a different calculation every time he asks. They have admitted that the calculator on the website gives the incorrect figure for him but are seemingly unable to correct it. He does now have the (hopefully) correct figures in writing but the website figures are still wrong. Goodness knows how long it will take to get the figures right when he does get to 60 and wants to take the pension and the lump sum! He's never yet managed to talk to someone at TP who understands his situation.

jem16

hjd wrote: »

As he is a deferred member of the TP scheme his pension is based on the best 3 consecutive years in the last 10 (or something like that).

Everyone's pension in the TPS is based on the average of the best 3 years in the last 10 years uprated for inflation.

As a Deferred Member your husband's pension would have been calculated when he left teaching and will be uprated each year by inflation.

They have admitted that the calculator on the website gives the incorrect figure for him but are seemingly unable to correct it.

The calculators aren't that clever. They will only base it on final salary. The average of the best 3 years out of the last 10 is a calculation that will be done when retirement benefits are requested. For most people that will be the final salary but at the moment it's the average of the best 3 years that's coming out on top.

hjd

jem16 wrote: »

The calculators aren't that clever. They will only base it on final salary. The average of the best 3 years out of the last 10 is a calculation that will be done when retirement benefits are requested. For most people that will be the final salary but at the moment it's the average of the best 3 years that's coming out on top.

So this is a known problem - but there is no warning on the website that the calculation may be wrong, and when he has asked (by phone and by letter) he has been given different figures every time. He doesn't have a lot of confidence in their ability to get it right when it matters!

jem16

hjd wrote: »

So this is a known problem - but there is no warning on the website that the calculation may be wrong,

What calculator is he using - the simple one on the website or is he logging into My Pension online?

The calculators are only estimates. They can't possibly work for every scenario as it will be different for everyone.

and when he has asked (by phone and by letter) he has been given different figures every time. He doesn't have a lot of confidence in their ability to get it right when it matters!

Is the correct service noted? If it is there is no reason to think it will not be correct when the time comes. The problem is that every year it will be different as each year his pension is uprated by inflation. I would be more concerned if he was given the same figures each time.