This guide consists of:
- A table comparing the main features of each of the three TP sub-schemes.
- A Primer – A more in-depth explanation that covers the two pension scheme types in use in the UK and how the TPS fits within them.
- ‘Career Average Pension – Is Being ‘Average’ Any Good?’ A 15 minute video about the Career Average Scheme.
- ‘Part Time & Career Average’ – A 12 minute video focussing on Career Average for lower paid and part time teachers.
- A 7-minute video about how the ‘Final Average Salary’ that is used in the Final Salary calculation is calculated.
Basic Comparison of the Main Features of the Three TP Sub-Schemes
A one-page table that compares the key features of each of TP’s three sub-schemes.
This will be a useful starting point for group members who are just beginning to learn about the TP sub-schemes they are in.
A Primer – DB and DC Schemes Explained
A more in-depth explanation that covers the two pension scheme types in use in the UK and how the TPS fits within them.
Career Average Scheme
David Fountain walks you through the CA scheme in 15 minutes. https://www.youtube.com/watch?v=kJpS3lS3h10
Career Average – is it worth it for part-time and lower-paid teachers?
Find out whether Career Average is a good deal or a great deal for lower paid and part-time workers. David Fountain talks you through it in this 12 minute video
https://www.youtube.com/watch?v=QTtcydmQP60
What is the ‘Final Average Salary’ in the Final Salary Calculation?
The Final Salary calculation is:
(Final Average Salary x Reckonable Service)/accrual rate
Reckonable Service – the time you have accrued in the Final Salary scheme
Accrual Rate – is 80 for the FS80th/NPA60 scheme and 60 for the FS60th/NPA65 scheme.
In this 7-minute video, David Fountain discusses how TP calculate the ‘Final Average Salary’ and use the best of the following in your Final Salary calculation.
Final Average Salary is the BEST of your:
- METHOD A – salary during the last 12 months
- METHOD B – the average of the best consecutive 36 months (3 years) in the last 10 years
- ALL HYPOTHETICAL CALCULATIONS – every time you have a break in ‘pensionable service’, either by leaving teaching or opting out of TP, a hypothetical calculation is created.