Pension and Lump Sum Ready Reckoner
This facility will calculate a pension and lump sum value based on variable data entered by you.
You will not usually be paid a pension if your total reckonable service is less than two years.
From 1 April 2007 existing members will retain a Normal Pension Age (NPA) of 60 with an accrual rate of 1/80th plus a lump sum of 3 x pension (as a minimum), and members with pensionable service on or after 1 April 2007 have an option to take a higher lump sum (up to HM Revenue and Customs limits) by surrendering £1 of annual pension for £12 of lump sum. Existing members cannot take less than 3 x pension (3/80ths) as a tax free lump sum.
For new entrants to the TPS their NPA will be 65 with an accrual rate of 1/60th. On retiring at age 65 their pension would be based on 1/60th of salary for each year of pensionable service with the flexible option to take up to 25% of the 'fund value' after commutation as a tax free lump sum by surrendering £1 of annual pension for £12 of lump sum.
New entrants will be defined as those who enter the scheme after 1 April 2007 with no previous pensionable service to their credit and those who return to teaching after 31 March 2008 having been out of pensionable (teaching) service for more than five years.
Teachers who have currently been out of pensionable service for more than five years, but who return to teaching by 31 March 2008 will retain a Normal Pension Age of 60 (irrespective of the length of break in service). Those who re-enter pensionable service after 31 March 2008, following a break of service of more than five years, will be subject to the provisions that apply to new entrants in respect of their future service. Benefits already accrued, however, would still be payable at age 60.