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days out

Discussion in 'Retirement' started by crashcentre, Aug 31, 2019.

  1. crashcentre

    crashcentre New commenter

    Hi. Would anyone know whether 22 days out of 22 years pensionable service, would amount to much in the amount of pension I receive? At the start of my employment at a new school 5 years ago, a mistake was made and the school paid my pension contribution into the govt scheme, rather than the TP scheme. They switched me back onto TP scheme as soon as I realised and flagged it up. I have the option now to buy the 22 days contribution but if it won't make a significant difference to my pension payments each month I will opt to leave things as they are.
     
  2. diddydave

    diddydave Occasional commenter

    Only approximate figures...no guarantee as to accuracy...

    In the final salary scheme:
    22 / 365 / 80 x Final Salary (final salary being your final 12 months or average of best 3 in previous 10)
    So for each £10,000 of your salary it's about £7.53 a year.

    In the career average scheme:
    22/ 365 / 57 x Salary at the time - but the kicker in this is that it would also have been uprated by inflation + 1.6% over those 5 years.
    In that case the flat increase per £10,000 in salary would be £10.57 but adding on the compound 1.6% above inflation would raise it to £11.27 - and you should bear in mind that, as it stands, that figure will rise above inflation by 1.6% until you leave. If you were to work for another 20 years it would be worth £15.48 at that point.

    It may be worth checking what happened to those 22 days worth of contributions as you may be able to get your school to stump up for their mistake.
     

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