Teacher’s pension salary of reference?

kpk2000

I was under the understanding that If you take the FS early then the CA has to be taken at the same time (although how the McCloud judgement impacts this is tbd as the CA has no protected age like the FS has for age 55) but if you take the FS at 60 then the CA can be taken later.

MazzaMan

paulstevenjones said:

MazzaMan said:

Her FS pension NPA is 60, we believe it is a good idea to work part time 4 days a week so she can take her FS pension and carry on working part time? From what we have read you can only earn 80% of your previous years income if you intend to take your pension? Her Career average will be payable at 67.

You cannot get the CA pension separately. It will be paid when you retire from FS and reduced accordingly. 

According to the teachers pension website you can:

Benefits in both final salary and career average

If you’ve benefits in both final salary and career average and provided you’re out of service, you can also claim your career average benefits as well as your final salary benefits.

Your career average benefits will be reduced because they are being paid before your NPA in that arrangement. If you wish you can leave these benefits until you reach your career average Normal Pension Age and they’ll then be paid in full.

MazzaMan

kpk2000 said:

I was under the understanding that If you take the FS early then the CA has to be taken at the same time (although how the McCloud judgement impacts this is tbd as the CA has no protected age like the FS has for age 55) but if you take the FS at 60 then the CA can be taken later.

Yes she intends to take FS at 60, work 4 days a week (if possible), then claim CA as well when leaving work totally.

paulstevenjones

MazzaMan said:

paulstevenjones said:

MazzaMan said:

Her FS pension NPA is 60, we believe it is a good idea to work part time 4 days a week so she can take her FS pension and carry on working part time? From what we have read you can only earn 80% of your previous years income if you intend to take your pension? Her Career average will be payable at 67.

You cannot get the CA pension separately. It will be paid when you retire from FS and reduced accordingly. 

According to the teachers pension website you can:

Benefits in both final salary and career average

If you’ve benefits in both final salary and career average and provided you’re out of service, you can also claim your career average benefits as well as your final salary benefits.

Your career average benefits will be reduced because they are being paid before your NPA in that arrangement. If you wish you can leave these benefits until you reach your career average Normal Pension Age and they’ll then be paid in full.

No you can't. You need to claim both pensions together whenever you do so. That is what TP told me last week. 

MazzaMan

paulstevenjones said:

MazzaMan said:

paulstevenjones said:

MazzaMan said:

Her FS pension NPA is 60, we believe it is a good idea to work part time 4 days a week so she can take her FS pension and carry on working part time? From what we have read you can only earn 80% of your previous years income if you intend to take your pension? Her Career average will be payable at 67.

You cannot get the CA pension separately. It will be paid when you retire from FS and reduced accordingly. 

According to the teachers pension website you can:

Benefits in both final salary and career average

If you’ve benefits in both final salary and career average and provided you’re out of service, you can also claim your career average benefits as well as your final salary benefits.

Your career average benefits will be reduced because they are being paid before your NPA in that arrangement. If you wish you can leave these benefits until you reach your career average Normal Pension Age and they’ll then be paid in full.

No you can't. You need to claim both pensions together whenever you do so. That is what TP told me last week. 

That’s not what the website says but my wife is going to speak to someone that has already taken phased retirement and is booking an hours telephone call with an advisor, hopefully they know the in and outs of the teachers pension!

cobson

paulstevenjones said:

MazzaMan said:

paulstevenjones said:

MazzaMan said:

Her FS pension NPA is 60, we believe it is a good idea to work part time 4 days a week so she can take her FS pension and carry on working part time? From what we have read you can only earn 80% of your previous years income if you intend to take your pension? Her Career average will be payable at 67.

You cannot get the CA pension separately. It will be paid when you retire from FS and reduced accordingly. 

According to the teachers pension website you can:

Benefits in both final salary and career average

If you’ve benefits in both final salary and career average and provided you’re out of service, you can also claim your career average benefits as well as your final salary benefits.

Your career average benefits will be reduced because they are being paid before your NPA in that arrangement. If you wish you can leave these benefits until you reach your career average Normal Pension Age and they’ll then be paid in full.

No you can't. You need to claim both pensions together whenever you do so. That is what TP told me last week. 

It may be that the person at the TP thought that you were taking your FS pension before NRA. If you are taking it at NRA then you can definitely choose to defer your CA pension.

MazzaMan

You can definitely take them separately even choose how much up to 75% of the value. This of course applies to those in both schemes. Also shows taking NPA60 final salary and deferring career average.

https://www.teacherspensions.co.uk/-/media/documents/employer/guides/accessing-benefits/combinations-for-accessing-benefits.ashx?rev=28653aeef4b24b9aaeee5d351fd8e8c2&hash=0E4BA43241DF626B1F8CBBCF91E4D3A7

zagubov

This could be complicated. If she wants to earn 80% of her full salary on returning to work that bring her over her salary of reference, leading to loss of most of her pension.
David Fountain has a youtube video on how to calculate the salary fo reference.
https://www.youtube.com/watch?v=d0qlSKWUSzY
If she starts phased retirement early then this may not matter..
In my case I retired for a day before my pension age, returned to work (initially full-time) and the salary of reference no longer applied. I've gradually reduced my working days over many years since then.

MazzaMan

The 80% is just a figure from the teachers pension website that says she needs to drop to when she gets her FS pension at NPA of 60, thanks for the link, will check it out, wonder why they make this so complicated!

diddyflanker

Phased retirement pensions are not subject to the abatement limits.
However, it would be worth checking the numbers thoroughly - actually get the figures sorted so you can see whether she would be close to the abatement limit as it may be that the gap between what she is earning and the salary of reference might be larger than the 75% of FS pension should could achieve. 
There is no enhancement of the NPA60 pension for leaving it beyond 60 - unless she were to get a significant promotion and thereby increase her final salary figure.

The salary of reference you should be able to work out from her statement. Download the PDF version and on page 5 it will tell you if her current "average salary" comes from Method A or B. (Though add about 10% to the Method B figure as it is only valued to last April at the moment).
If it is Method A then that would be her current SoR.
If it is Method B then look at the table for all of the salaries marked as being Method B, the SoR is then the highest of the "revlaued" amounts for this financial year. For the forthcoming financial year that figure will be increased by 10.1%