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Aahh! Pension plans scuppered?

Discussion in 'Retirement' started by sabreflyer, Aug 7, 2016.

  1. sabreflyer

    sabreflyer New commenter

    Thanks Phatsals, yes you are correct that appears to be how it works.
  2. phatsals

    phatsals Senior commenter

    Thanks for the confirmation sabreflyer. I think I am a year ahead of you as I have already hit the 2012 drop. For the previous 2 years the 'Average Salary' fell slightly but this year really fell as 2005 went and my PT hours were far fewer in the early days. The printout of revalued salaries makes for very salutary reading.

    Please do keep us posted on how this works out. I've already applied to opt out and am waiting for confirmation.
    tuscanydays likes this.
  3. SteveKindle

    SteveKindle Occasional commenter

    Could you clarify?

    Are you saying your 'best 3 consecutive years' is actually your 'best 3 1095 consecutive days', as opposed to 'best 3 September 1st to August 31sts' or 'best 3 1st April to 31stMarchs'?
  4. phatsals

    phatsals Senior commenter

    Yes, that would appear to be the case for PT. My dates were from April 2006 to 12th September 2012. I have never seen this level of detail before this year and previously assumed it was calendar years. When I scrutinised the dates it added up to 1095 days - going almost up to 6 years. I don't know if you are FT or PT but on PT the annual statement has a column for 'days out' and 'days in'.

    The 1095 days are consecutive, which is the same as 3 consecutive years FT. I hope that clarifies it a little and if not, I apologise.
    tuscanydays and SteveKindle like this.
  5. SteveKindle

    SteveKindle Occasional commenter


    Ultimately it doesn't, or at least shouldn't make a difference to me.

    Time will tell.
  6. blazer

    blazer Star commenter

    The NASUWT are affiliated with the Wesleyan insurance company. They are experts in the teacher pension scheme. Even if you are not in the NASUWT they will advise. I bet the NUT have similar links (it used to be Commercial Union IIRC)

    My advisor is nichola.jones(at)wesleyan.co.uk (swap the (at) for @) she is based in Brum but I am sure she can point you in the direction of your local office. Their advice is free (obviously they hope you will take up some of their investment opportunities but that is not compulsory). They run seminars as well as giving individual advice.
    Shedman, sabreflyer and Mrsmumbles like this.
  7. buntbunt

    buntbunt New commenter

    Thank you Sabreflyer, Phatsals, Mrsmumbles and SteveKindle, as from your combined comments I now feel much better informed about the 3 consecutive years and how this applies to PT. Also thank you so much for highlighting impact of inflation!! Sounds obvious once you are tuned in, but not when you are in school mode as don't have the mental energy to devote to these important matters!! Thanks once again as I am getting support in so many ways from these forums.
    SteveKindle likes this.
  8. Mrsmumbles

    Mrsmumbles Star commenter

    Ah...wish I could help more. Sadly, whatever the problem, I feel I have to call TPS (gulp) three times, because I've been told different things by different advisors! Must be such a hard job...all these pension changes, all these different types and stage of pension members...transitional members alone are tricky! I think anything you do will increase your confidence and get you better prepared. I'd also call HMRC, between 1030 am and 1 on a Monday, as we teachers often overpay on things and they can issue rebates and handy help. Good luck.
  9. marymoocow

    marymoocow Star commenter

    I left teaching in tax year 2014-16. I don't intend to return. Do I need to do anything with my pension, such as freeze it?
  10. phatsals

    phatsals Senior commenter

    As you have already left it should be just sitting there. If you look online it will say if you are out of service but you can always ring TP to be sure. In the light of the above re inflation its always worth checking.
  11. Mrsmumbles

    Mrsmumbles Star commenter

    I think it just sits there happily, so all the final salary bits up to April 2015 can be accessed at 60 and the smaller bit from May 2015 to August 2016 sits there until you turn 67. I think your final salary link breaks after more than a five year gap from teaching, but if not ever wishing to return, it shouldn't affect your pots at all. TPS staff are both very helpful AND very undertrained, it depends who you get and what time you call. I had several staff tell me I could only work on as a teacher until 2018 if I wanted to stop my subsequent career average years affecting my final salary pot. This isn't true at all, as the final salary lot is ring fenced. From what I understand, it becomes more of a problem if you need to retire soon, or if you need to retire a long way in the future and wish to keep paying into career average. In which case it may be worth deliberately breaking the final salary link. Have the sneaking feeling that a lot of TPS don't really know what the FSL is.
  12. First Snowdrop

    First Snowdrop New commenter

    I didn't get chance to speak to TPS before going on holiday, but contacted them through the website on my return as I wanted a written response to make sure I was certain about what I was being told. The reply was very detailed & gave me my Original Salary & Revised Salary figures for the 10 years from 1/4/2006 to 31/3/2016. It informed me that if the last day I contributed to TPS remains as 31.8.2016, then my best average salary period will be calculated from the period from 1/9/2006 to 31/8/2016 ie service from 1/4/2006 to 31/8/2006 will no longer be used. Using that info, I've calculated that I've paid pension contributions for the last 5 months to end up with a net loss (after allowing for extra days of service) of about £29 a year on my pension (I'm p/t). It's worth anyone who is unsure contacting TPS in writing.
    Mrsmumbles likes this.
  13. Lara mfl 05

    Lara mfl 05 Star commenter

    mary I last paid into TPS back in 2012, when I moved to the Independent sector. Everything was 'frozen' and just sat there till I activated it this July. Was exactly the same calculation as I'd had back in 2012.
  14. Mrsmumbles

    Mrsmumbles Star commenter

    Definitely. I did it three times to allow for rookie staff errors. It worked!
    First Snowdrop likes this.
  15. First Snowdrop

    First Snowdrop New commenter

    Did you get the same answer all 3 times?;) (Edited: Sorry, just reread your post from above - you didn't!)
  16. phatsals

    phatsals Senior commenter

    This is the same for me. I worked this year on a .55 so added to my pension £84 pa, not the expected £250 plus. The Average Salary is dropping every year and is showing for PT workers first. In short, full time teachers who are still in Final Salary will find their pension falls off a cliff from next year onwards and it will be too late to freeze it.

    I have opted out now.

    I assume those on mixed service have the Final Salary element frozen from when it changed to Career Average so shouldn't experience this fall in the same way. I think it is a bombshell for those of us still in Final Salary and approaching retirement. Those who got out before don't know how lucky they are,
  17. FrankWolley

    FrankWolley Star commenter

    Some of us do - lucky and perhaps a tad shrewd... (I went just before my 57th birthday - took a hit on my lump sum and monthly pension at the time, but def. worth it)
  18. phatsals

    phatsals Senior commenter

    I really get that FrankWolley, but what I mean is that this deflation effect was unforeseen by most if not all. There is likely to be a 15% drop in the next 2/3 years for those staying in the scheme.
  19. FrankWolley

    FrankWolley Star commenter

    If that's the case (and I have no reason not to believe you) then a lot of teachers aged 55+ should be retiring ASAP, even if some then start another job afterwards.
  20. phatsals

    phatsals Senior commenter

    I think you're right. Because of being PT the effects are felt sooner, ie it may be over 6 years that the 'best 3 of 10' come from, hence for me I'm already using some 2012 service. I think 2010 inflation was at 5% then fell dramatically, now to 0%. This has meant the 'Average Salary', rather than increasing is beginning to fall.

    I am wondering if it would be better to take ARB and rejoin under the new scheme where at least some contributions can continue. Staying in the Final Salary one is to say the least counterproductive. An accountant has warned me that should I stay in I will see a fall of 15% on my current pension figure. By opting out I can preserve it.
    tuscanydays likes this.

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