Teachers Pension - Take at 55 or 57/58

IAMIAM

This reads that if you are currently say 45 and a member of Career Average only, you can still claim everything at age 55 even though your NPA is 68. Is this correct?

Change to the Normal Minimum Pension Age

On 6 April 2028, the Normal Minimum Pension Age (NMPA) will increase from 55 to 57. This will impact the age at which new entrants to the Teachers’ Pension Scheme on or after 4 November 2021 can take their pension benefits. This change was made by the Finance Act 2022 and applies to all schemes, not just the Teachers’ Pension Scheme. 

A member would retain a NMPA of 55 if they had service in the Teachers’ Pension Scheme before the announcement regarding NMPA changes on 4 November 2021. Hence:

• From 6 April 2028, members with service in the final salary and/or career average scheme up to 3 November 2021 will retain the right to take Early (actuarially adjusted) Retirement or Phased Retirement from age 55 subject to an application being made and the relevant retirement conditions being satisfied. For example, for an ‘out-of-service’ Early Retirement application, a member must be out of service for a minimum of six weeks prior to the selected payable date of the Early Retirement award.

• Members who joined the career average scheme for the first time after 3 November 2021, will have a Normal Minimum Pension Age of 57.

There remain some policy considerations to work through, and the Department for Education is committed to giving an update as soon as possible.

Marcon

IAMIAM said:

This reads that if you are currently say 45 and a member of Career Average only, you can still claim everything at age 55 even though your NPA is 68. Is this correct?

On 6 April 2028, the Normal Minimum Pension Age (NMPA) will increase from 55 to 57. This will impact the age at which new entrants to the Teachers’ Pension Scheme on or after 4 November 2021 can take their pension benefits. 

A member would retain a NMPA of 55 if they had service in the Teachers’ Pension Scheme before the announcement regarding NMPA changes on 4 November 2021. 

If you had service in the TPS before 4 November 2021, not sure how else you could interpret it. Take out the extraneous words...

Emmia

IAMIAM said:

This reads that if you are currently say 45 and a member of Career Average only, you can still claim everything at age 55 even though your NPA is 68. Is this correct?

Change to the Normal Minimum Pension Age

On 6 April 2028, the Normal Minimum Pension Age (NMPA) will increase from 55 to 57. This will impact the age at which new entrants to the Teachers’ Pension Scheme on or after 4 November 2021 can take their pension benefits. This change was made by the Finance Act 2022 and applies to all schemes, not just the Teachers’ Pension Scheme. 

A member would retain a NMPA of 55 if they had service in the Teachers’ Pension Scheme before the announcement regarding NMPA changes on 4 November 2021. Hence:

• From 6 April 2028, members with service in the final salary and/or career average scheme up to 3 November 2021 will retain the right to take Early (actuarially adjusted) Retirement or Phased Retirement from age 55 subject to an application being made and the relevant retirement conditions being satisfied. For example, for an ‘out-of-service’ Early Retirement application, a member must be out of service for a minimum of six weeks prior to the selected payable date of the Early Retirement award.

• Members who joined the career average scheme for the first time after 3 November 2021, will have a Normal Minimum Pension Age of 57.

There remain some policy considerations to work through, and the Department for Education is committed to giving an update as soon as possible.

Yes, as long as you joined before 4 November 2021. 

If you joined (for example) on 5 November 2021 you need to wait until you're 57 to take your pension early.

RipleyG

When you say "still claim everything" do you mean will you still get the full amount of forecast pension? If so, no - 'actuarial reduction' means they will work out a reduced amount of pension to reflect the fact they will be paying it for a longer period. Taking it at 55 instead of 68 would be likely to make the reduction significant. 

It also says 'subject to an application being made and relevant conditions being met'. You'll need to look through your scheme document to find out what those conditions are, and the scheme Trustees will need to agree that you meet them.