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    • By FIRSTTIMER 15th Apr 19, 7:49 PM
    • 501Posts
    • 93Thanks
    Teacher Pension Flexibilities INCREASE
    • #1
    • 15th Apr 19, 7:49 PM
    Teacher Pension Flexibilities INCREASE 15th Apr 19 at 7:49 PM

    After some advice. I participate in this scheme and have paid for 3 year buy out within the Career Average. I have to pay 2.1% for this in order to take full benefits at current age 65 instead of 68.

    I have now had a letter stating the following.....

    Total Flexibilities available in TPS 7000.

    Buy Out is 2.1% and now has a value of 4200

    Faster Accrual (1/45), last year was 6% extra payments, this year has increased massively to 7.5% if I want it.

    After the above two, I only have 2200 left to buy in flexibilities which could be around 4-5 years of payments at 1/45.

    What I am querying is the faster accrual bit and whether it is actually worth it now that it has increased massively, The only explanation I have got from TPS is that the revaluation has been completed this year and the rates have gone up. Part of me is happy I paid the buy out and fixed at 2.1%, however to get the full 7000 seems likes its going to cost a fortune via FA just for an extra 2-3k at retirement. I have also noticed the value of the 3 year buy out keeps increasing so that is hammering the amount of the 7000 I can purchase as extra....
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    • OldBeanz
    • By OldBeanz 15th Apr 19, 11:06 PM
    • 824 Posts
    • 637 Thanks
    • #2
    • 15th Apr 19, 11:06 PM
    • #2
    • 15th Apr 19, 11:06 PM
    Not sure about the costs but I know in the Civil Service the price ramped up the nearer you got to pensionable age. My son, on the other hand, >30, who has just joined the TPS, was given very attractive rates over 5 years.
    • By FIRSTTIMER 21st Apr 19, 8:45 AM
    • 501 Posts
    • 93 Thanks
    • #3
    • 21st Apr 19, 8:45 AM
    • #3
    • 21st Apr 19, 8:45 AM
    Thanks for this
    • Oliver1191
    • By Oliver1191 21st Apr 19, 6:42 PM
    • 79 Posts
    • 31 Thanks
    • #4
    • 21st Apr 19, 6:42 PM
    • #4
    • 21st Apr 19, 6:42 PM
    Maybe consider a mix of apb and faster accrural? I was under the impression that faster accruaral was better if you were in the scheme working for a long time as it benefits by the annual 1.6% increase. However, givrn the future is always unpredictable, apb might better.
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