Frequent Questions - Pensioners
1. Why has my pension been reduced upon reaching State Pension Age?
2. Why has my tax code changed?
3. Who decides on the pensions increase each year & when is it done?
4. What is this year's pensions increase?
1. Why has my pension been reduced upon reaching state retirement age?
The Teachers' Superannuation Regulations provide that retirement benefits are based on total reckonable service and average salary less any deductions in respect of the flat-rate national insurance scheme and the graduated pension scheme.
Flat-rate National Insurance Contributions
If you started pensionable teaching employment after June 1948, your pension contributions were lower because of National Insurance legislation until 31 March 1980. The basic rate of pension is accordingly reduced by £1.70 per annum for each year of service between these dates.
Graduated National Insurance Contributions
The Teachers' Pension Scheme was contracted out of the National Insurance Graduated Pension Scheme. If you contributed to that scheme between 3 April 1961 and 5 April 1975, your teacher's pension will be reduced to take account of the extra state pension you will receive. The state pension is made up of: the basic state pension and an additional pension from State Earnings Related Pension Scheme (The amount received depends on the level of your salary).
For more information on your state pension contact Contracted-out Employment Group at:
HM Revenue & Customs
Contributions Office
Contracted-out Employment Group
Longbenton
Newcastle upon Tyne
NE98 1ZZ
2. Why has my tax code changed?
This is directed by HM Revenue & Customs in accordance with announcements made in the budget. For further information and questions about your income tax assessment, please contact:
HM Revenue & Customs
Moira House
121 Hillsborough Road
Lisburn
Co. Antrim
BT28 1LA.
3. Who decides on the pensions increase each year and when is it done?
The Secretary of State for Social Security makes the announcement in a draft Pensions Increase (Review) Order which is approved by Parliament usually during March each year. The new rate of increase takes effect from the first Monday after 5 April each year.
4. What is this year's pensions increase?
The rate of increase from 9 April 2012 is 5.2 percent. In common with other public service pensions, teachers' pensions are increased annually each April in line with the consumer prices index, so as to maintain their purchasing power. The rate of increase will not, therefore, necessarily mirror any rate of increase of teachers' pay; it might be higher or lower. For pensions payable before 55,.this increase will not be payable until the 55th birthday unless the individual retired on grounds of ill-health or has dependent children and retired on grounds of redundancy. For previous years the rates have been as follows: -
11 April 2011 – 3.1 percent
12 April 2010 – 0.0 percent
6 April 2009 – 5.0 percent
5. If this years pension increase(PI) is 5.2 percent, why has my gross monthly amount not increased by 5.2 percent?
PI is applied from 9th April 2012, so the first months increase will never exactly match the annual increase.
6. My late husband/wife said that my widow/er’s pension would be half of his/her pension. Why is my pension less than half?
The widow/er’s pension is half of the pension if all of the member's reckonable service counts for family benefits. If all of the service was not covered then the pension will be a smaller proportion of the member's pension based on the number of years counting towards family benefits.
