Teachers' Pensions Error

polymaff

Has anyone else received a statement from TPS saying that, due to a GMP calculation error, they are reducing the pension paid by about 2%?


"Recently Her Majesty’s Revenue and Customs (HMRC) and the Teachers’ Pension Scheme (along with other pension schemes) took part in an exercise to reconcile pension data. As part of this exercise we’ve identified that unfortunately your teacher’s pension has been overpaid."

in_my_wellies

I had a similar letter but I got an increase for each year. I was underpaid approx 95p a year x 7 years before tax. I got 7 messages and 7 bank credits of about 75p each

woolly_wombat

Ah yes, GMP reconciliation.

I wonder how many other anomalies are turning up, and not just in the Teachers' Pension Scheme.

Hopefully someone more knowledgeable will be able to shed more light.

Silvertabby

This is nothing to do with the recently announced GMP equality problem, which has resulted in a temporary hold on transfers out.

This particuar GMP reconciliation has been going on for some years now, and involves pension schemes applying the correct rate of GMP (as supplied by DWP) instead of revaluing it themselves. As a result, some people will have a slight reduction whilst others will have a small increase.

xylophone

http://www.sppa.gov.uk/Documents/LATEST%20NEWS%20DOCS/GMP%20Q&A.pdf

Above may be of interest.

hyubh

polymaff wrote: »

Has anyone else received a statement from TPS saying that, due to a GMP calculation error, they are reducing the pension paid by about 2%?


"Recently Her Majesty’s Revenue and Customs (HMRC) and the Teachers’ Pension Scheme (along with other pension schemes) took part in an exercise to reconcile pension data. As part of this exercise we’ve identified that unfortunately your teacher’s pension has been overpaid."

Most material GMP discrepancies for public sector schemes will be that way round because of the relatively simple way they treat GMP (emphasis on the 'relatively'). In essence, you will have been receiving through your state pension a small but growing amount that should have been deducted from your Teachers pension to prevent double counting. This would have been due to the GMP component of your TPS pension either not being recorded at all on your TPS record, or only partly (e.g. if you had transferred in from another contracted-out scheme, but the GMP from it was not put on your TPS record).

Either way, more of your TPS pension would have therefore been classed as 'excess' and so apparently requiring full increases each year, regardless of the increases on the GMP you effectively got through your state pension - hence the overpayment.

polymaff

I could understand if the discrepancy was "in my wellies"'s 95p per annum, but Mrs P is being hit for over £200 per annum in perpetuity.


TPS are generous enough to say that no attempt will be made to recover the overpayments made to date!


It doesn't seem right.

polymaff

hyubh wrote: »

... In essence, you will have been receiving through your state pension a small but growing amount that should have been deducted from your Teachers pension to prevent double counting.

Yes, and this is significantly less than the cut-back TPS are applying to her Teacher's pension.


Rough justice.

xylophone

This cropped up before, around ten years back - see


https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN04919

polymaff

xylophone wrote: »

This cropped up before, around ten years back - see


https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN04919

Yes, noted in your previous reference - but one gets the impression that it was only minor adjustments then, too.


£209.64 per annum is a hell of a kick in the teeth - especially for someone who won't be claiming the pension for much longer.

hyubh

polymaff wrote: »

Yes, and this is significantly less than the cut-back TPS are applying to her Teacher's pension.

You sure? What are the calculations...?

Rough justice.

The scheme can't claim back more than what is actually due, and is very likely claiming less by not seeking historic overpayments (or at least, not in full).