How does early retirement work in TPS CARE

IAMIAM

If I stop working at 55 and claim at 60.

Will I get the 5 year gap revalued at cpi plus 1.6% when I claim? 

If I have paid for 3 year buy out with a retirement age of 68, will I get only 5 years reduced by actuarial reduction, as I have effectively paid for the 65-68 period by paying extra % in contributions since starting in everything ‘banked’ up to age 55. 

I am basing all the above on the amount that is banked up to age 55. I am presuming that’s how it works in career average. 

Also, at age 55, I am effectively going to see what I have left in what I can purchase in APB and pay for it by lump sum. I understand this may be reduced by nearly 8 years as there is no buy out on this part at age 60 claiming. Is this correct and any way around this? 

Dazed_and_C0nfused

IAMIAM said:

If I stop working at 55 and claim at 60.

Will I get the 5 year gap revalued at cpi plus 1.6% when I claim? 

If I have paid for 3 year buy out with a retirement age of 68, will I get only 5 years reduced by actuarial reduction, as I have effectively paid for the 65-68 period by paying extra % in contributions since starting in everything ‘banked’ up to age 55. 

I am basing all the above on the amount that is banked up to age 55. I am presuming that’s how it works in career average. 

Also, at age 55, I am effectively going to see what I have left in what I can purchase in APB and pay for it by lump sum. I understand this may be reduced by nearly 8 years as there is no buy out on this part at age 60 claiming. Is this correct and any way around this? 

No to the first question.

Deferred members lose the extra 1.6% 

https://www.teacherspensions.co.uk/members/resources/forms/updates.aspx#:~:text=As the rate of the,effect from 1 April 2023.

IAMIAM

Dazed_and_C0nfused said:

IAMIAM said:

If I stop working at 55 and claim at 60.

Will I get the 5 year gap revalued at cpi plus 1.6% when I claim? 

If I have paid for 3 year buy out with a retirement age of 68, will I get only 5 years reduced by actuarial reduction, as I have effectively paid for the 65-68 period by paying extra % in contributions since starting in everything ‘banked’ up to age 55. 

I am basing all the above on the amount that is banked up to age 55. I am presuming that’s how it works in career average. 

Also, at age 55, I am effectively going to see what I have left in what I can purchase in APB and pay for it by lump sum. I understand this may be reduced by nearly 8 years as there is no buy out on this part at age 60 claiming. Is this correct and any way around this? 

No to the first question.

Deferred members lose the extra 1.6% 

https://www.teacherspensions.co.uk/members/resources/forms/updates.aspx#:~:text=As the rate of the,effect from 1 April 2023.

Am I reading it wrong then, revaluation including 1.6% is given if not out of service for longer than 5 years? Or is this for rentrants before the 5 years?

hyubh

IAMIAM said:

Dazed_and_C0nfused said:

IAMIAM said:

If I stop working at 55 and claim at 60.

Will I get the 5 year gap revalued at cpi plus 1.6% when I claim? 

If I have paid for 3 year buy out with a retirement age of 68, will I get only 5 years reduced by actuarial reduction, as I have effectively paid for the 65-68 period by paying extra % in contributions since starting in everything ‘banked’ up to age 55. 

I am basing all the above on the amount that is banked up to age 55. I am presuming that’s how it works in career average. 

Also, at age 55, I am effectively going to see what I have left in what I can purchase in APB and pay for it by lump sum. I understand this may be reduced by nearly 8 years as there is no buy out on this part at age 60 claiming. Is this correct and any way around this? 

No to the first question.

Deferred members lose the extra 1.6% 

https://www.teacherspensions.co.uk/members/resources/forms/updates.aspx#:~:text=As the rate of the,effect from 1 April 2023.

Am I reading it wrong then, revaluation including 1.6% is given if not out of service for longer than 5 years? Or is this for rentrants before the 5 years?

The latter. Essentially a break of less than five years between active memberships is treated like an extended period of unpaid leave for pension purposes. Rather than, the first five years of deferment involving the pensions equivalent of parachute payments to a football club relegated from the Premier League ;-)

IAMIAM

Interesting, so I may either go to one day a week, or get a contract towards age 60 for a short while in order to get the revaluation benefit.

hyubh

IAMIAM said:

Interesting, so I may either go to one day a week, or get a contract towards age 60 for a short while in order to get the revaluation benefit.

Or (say) get a part time job with the local council and transfer in - same rule applies for Club transfers between public sector schemes, where the CARE part of the transfer keeps the active revaluation rate of the old scheme.

IAMIAM

hyubh said:

IAMIAM said:

Interesting, so I may either go to one day a week, or get a contract towards age 60 for a short while in order to get the revaluation benefit.

Or (say) get a part time job with the local council and transfer in - same rule applies for Club transfers between public sector schemes, where the CARE part of the transfer keeps the active revaluation rate of the old scheme.

I never knew that. So with club transfers, I get revaluation of TPS until drawdown?

What about 3 year buy out and my APB part of it?...