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Best Salary query + Calculators on TP site

Discussion in 'Retirement' started by TonyM19, Sep 20, 2017.

  1. TonyM19

    TonyM19 New commenter

    Hi

    Couple of queries before I try to get through to TP:

    I'm 56 and on the Final Pension scheme. On my latest statement it has my Best Salary period as 31/08/2009 to 31/08/2012. Am i reading this correctly in that I have until 31/08/2019 until they start using different values to calculate my pension? Are TP able to tell you the impact of leaving it another year? Can they tell you what the difference would be if you left it until after that date?

    Have the calculators changed on the TP website? You used to be able to model the effect of taking early retirement on your annual pension and your lump sum. It seems to have lost some of that functionality.

    And, yes I've had a bad day :)
     
    emerald52 likes this.
  2. emerald52

    emerald52 Star commenter

    Email TP. They are very helpful.
     
  3. binaryhex

    binaryhex Established commenter

    Broadly, yes, they look at either the best three years in the last working ten, or the final year's salary, whichever is highest. You should contact them and ask for a breakdown of your best 10 years do you can see exactly where you are, as well as contact the national insurance people to see how many years of have and your likely state pension - just google 'national insurance pension projection'. The modeller for the effect of early retirement was on the website last time I looked. Also, make sure you are clear how working part time or phased retirement works and affects the pension. Phone and talk to TPS. They are excellent when you get to speak to them. I finally quit this Summer aged 55 after four years of working a three to four month contract a year. And now all is good.
     
    FrankWolley likes this.
  4. markandrewberry1

    markandrewberry1 New commenter

    This is a really interesting question. Being not quite 53 I have more 'best years' to lose.

    I think that the answer must be NO, the modeler will not take into account that you will lose one of your best years.

    To model this would have to assume that your salary doesn't increase in your last years, but of course it could.

    Indexing of previous years protects us from inflation, but all the modeled projections are in 'today's money' anyway, so any attempt at the fine-tuning of indexing into the future may seem pointless. But I do believe lost best years could affect some of us severely.
     
  5. FrankWolley

    FrankWolley Star commenter

    Given what we know about inflation and public pay after 2009, my gut feeling is that yes, you may lose some good years. As advised above, ask the TPS and, if you are in a union, then I'd ask them.
     
  6. holdingon

    holdingon Occasional commenter

    https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7g7/mm23

    It is the September CPI figure that is used to uprate the following April pension increase.
    Next April, 2007 will drop out of the calculation - it was 1.8% in Sebt 2007. It should be replaced by the 2008 figure which was a mighty 5.2%. It looks as if 20017 figure is likely to be 2.9% or so which is good for the calculation for anyone going after next April. Pull the slider along the chart and compare your pay rises against inflation.
     
  7. wanet

    wanet Star commenter

    Yes youwill lose some of the high inflation boost, but in mitigation will be the loss of reduction for leaving early and extrayears paid into the scheme.
     
    emerald52 likes this.
  8. holdingon

    holdingon Occasional commenter

    Correct, it's a juggling act

    When the numbers work for you, then you have the option to jump.
     
    emerald52 likes this.
  9. TonyM19

    TonyM19 New commenter

    Thanks for the replies. Going to have a good look at this at half term when I have a bit more time
     
  10. TonyM19

    TonyM19 New commenter

    Sorry to resurrect this one, but just wanted to answer my own questions in case anybody else has the same problem.

    Called TP (caller 40 in the queue which says something!) and they confirmed that I could work until August 2019 before my current best 3 years fell off.

    I didn't realise that in the service history section of your Benefits Statement you can see the salary you earned in each year. They split the year up into periods, but its the best salary for the periods for that year that is used to calculate your Average Salary - easier to see if you look at your own Benefit Statement. Useful to see exactly when your best 3 years were. They told me it was the average of the best salary for each year over the 3 year period that was used to make the calculation for Average Salary (or at least that's what I undetsood they were teling me). It doesn't work out exactly for me, but it is pretty close to the figure on my benefit statement.

    I asked for the exact impact of waiting another year on my average salary but they couldn't tell me there and then.

    Answered my question hope it can help somebody else as well.

    Cheers
     
    PeterQuint likes this.
  11. PeterQuint

    PeterQuint Established commenter

    To be accurate, before your best three years START to fall off. They won't all disappear at once.
     
  12. m_mcdermott1

    m_mcdermott1 New commenter

    Could someone clarify this for me (sorry for not quite getting this) ...

    Is the CPI adjustment (estimated here to be about 2.9%) only calculated at the end of the financial year (April), so it you leave, or opt out of the pension scheme before this (i.e. before April) then the previous years CPI is used/stands? If so, because the CPI was a lot less last year, perhaps it is better waiting until next April (and get the new figure of 2.9% used)
     
  13. TonyM19

    TonyM19 New commenter

    Yes. They did say that it wouldn't actually make that much difference but it would go down.
     
  14. LIZW44

    LIZW44 New commenter

    I'm planning to go at the end of this academic year. However, when I've checked my Benefits Statement, my best three years are currently 2007-2010. Does this mean that I'll lose out if I wait until the summer? Would I be better off going at Easter or won't it make a difference? Also, when do I need to tell school of my intention? Any help or advice will be gratefully received - thank you.
     
  15. phatsals

    phatsals Occasional commenter

    Please do ask TP for an up to date statement of your last 10 years salaries uprated for inflation. This will give you a clearer idea of where you stand regarding inflation. It is true that 2007 will drop off but you need to see your own personal statement to check how this impacts you.
     

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