What will teachers pension increase by this year? 10% CPI?

Rheumatoid

Excuse my ignorance but my wife is still working and contributes to the NHS pension scheme. She is working out when to retire but is thinking March 2023, but possibly a little later. If, as it seems from this thread, those that have taken their pension might benefit from a significant inflation related uplift next year, is it better to get retired and on a pension before it is applied or will it make no difference as it will be applied to her final salary benefits anyway?

Bobinyorkshire

I’m guessing it’s all about balance. Although you may get a greater annual increase from the annual CPI uplift if deferred or actually taking your NHS pension when compared to the annual salary rise you would get if still working, it would also mean you have less ‘years’ in the scheme. I know my protected portion of my NHS pension has gone up appreciable more than my salary, but it will always be for the same number of years only. Hope that makes sense. If I’m wrong I’m sure someone will correct me

Silvertabby

Rheumatoid said:

Excuse my ignorance but my wife is still working and contributes to the NHS pension scheme. She is working out when to retire but is thinking March 2023, but possibly a little later. If, as it seems from this thread, those that have taken their pension might benefit from a significant inflation related uplift next year, is it better to get retired and on a pension before it is applied or will it make no difference as it will be applied to her final salary benefits anyway?

If she is still working, then the 10% (?) revaluation will only be applied to her CARE benefits, and not her FS accrual.

If she retires 31 March then she won't get any increase to her pension in payment in April, as the full 10% (?) only applies to pensions that have been in payment (or deferred) for 12 months.  The increase is applied pro rata for those with less than 12 months between payment or deferral - ie, 5% for someone who retired/deferred last September - but there won't be any increase for just 11 days.

Will working an extra month, in order to get 10% on her CARE pension, make much of a difference?

IAMIAM

What actually happens to TPS when in deferment. Does it just increase by CPI until taken. What about if you had paid for the the 3 year buyout? Is this potentially lost if you transfer out to another civil service pension......???

JoeCrystal

Have you asked the TPS administrators about it? I am sure that they are best placed to answer your question.

Rheumatoid

Silvertabby said:

Rheumatoid said:

Excuse my ignorance but my wife is still working and contributes to the NHS pension scheme. She is working out when to retire but is thinking March 2023, but possibly a little later. If, as it seems from this thread, those that have taken their pension might benefit from a significant inflation related uplift next year, is it better to get retired and on a pension before it is applied or will it make no difference as it will be applied to her final salary benefits anyway?

If she is still working, then the 10% (?) revaluation will only be applied to her CARE benefits, and not her FS accrual.

If she retires 31 March then she won't get any increase to her pension in payment in April, as the full 10% (?) only applies to pensions that have been in payment (or deferred) for 12 months.  The increase is applied pro rata for those with less than 12 months between payment or deferral - ie, 5% for someone who retired/deferred last September - but there won't be any increase for just 11 days.

Will working an extra month, in order to get 10% on her CARE pension, make much of a difference?

She stayed in the old scheme. Not sure if that makes any difference. However, your point about the uplift only being paid pro-rata is useful thanks.

cobson

IAMIAM said:

What actually happens to TPS when in deferment. Does it just increase by CPI until taken. What about if you had paid for the the 3 year buyout? Is this potentially lost if you transfer out to another civil service pension......???

You might want to have a look at this, though I don't think it answers your last question:

Deferred Guide (teacherspensions.co.uk)

drummersdale

Just watching an interview on Sky with one of the supporters of one the prospective Tory leader candidates. When asked on at least 3 occasions would their person support the likely 10% CPI pension increase she basically avoided and dodged the question which makes me wonder if another “we are all in this together, need to be fair to everyone, so let’s cap the increase at say 5%” is on the cards?

saucer

drummersdale said:

Just watching an interview on Sky with one of the supporters of one the prospective Tory leader candidates. When asked on at least 3 occasions would their person support the likely 10% CPI pension increase she basically avoided and dodged the question which makes me wonder if another “we are all in this together, need to be fair to everyone, so let’s cap the increase at say 5%” is on the cards?

If you’re talking about the triple lock, that has been confirmed as reinstated for next year based on this September’s CPI rate. https://questions-statements.parliament.uk/written-questions/detail/2022-06-15/18980

drummersdale

Thanks for that reassurance - for a minute I was thinking the new PM might look to introduce legislation to roll back on that commitment and use the money saved elsewhere….