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How is revalued Salary B calculated by the TPS?

Discussion in 'Retirement' started by steveroberts61, Mar 4, 2018.

  1. tracymicra

    tracymicra New commenter

    Hi again BellacJ

    Phoned LA yesterday to see if they'd managed to process it as I'd missed their deadline of 15th of month. I posted it to them on 19th, asked if they could possibly fast track it. They have ......assure me it was posted on to TP last Friday. So if all goes to plan should be opted out from April1. Not sure what happens then. Will let you know what I hear next.

    Think my next step has to be to claim age related pension (60 in July). Believe I have to complete form and send in to TP up to 4 months before. So anytime now. Haven't yet looked to see how complicated form is. But am definitely doing it. Fed up of pontificating and trying to work out when is most beneficial time to opt out/ claim pension. Can never get a straight answer from TP about anything to do with future calculations , only the past, which is not a fat lot of use. MInd you, it's at least an improvement that they answer the phone now! Got tired of being 80th in the queue last summer. They do try to be helpful, but will never give a straight answer. Anyway it's done now so shall stop worrying about it.
    Hope things go smoothly for you in the summer. Will keep you posted if I get any useful info.
     
    steveroberts61 likes this.
  2. BELLACJ

    BELLACJ New commenter

    Hi tracymicra, fingers crossed it should go through quickly for you. I’d be interested to hear if it all goes to plan! I agree you do get fed up of trying to work out what is best to do with regards to opting out and in the end you just have to decide and hope for the best! It does seem a uniquely complicated system for some of us caught in this ‘falling of the average salary’ dilemma. Hopefully the next bit of applying to take the pension will be more straightforward!
     
    steveroberts61 likes this.
  3. steveroberts61

    steveroberts61 New commenter

    I still can't decide which way to go. Opt out or keep it rolling till December. I am retiring early at 57 in December whatever I decide and after doing the calculations again will be £20 a year worse off if I keep paying in. The only thing stopping me at the moment is the in service death benefits and if the TPS go back to the previous April for the best average. I which I was as decisive as tracymicra.
     
  4. steveroberts61

    steveroberts61 New commenter

    I should add to my previous post that if I let it run till December and the TPS do go back to this April for their calculation then i would be £300/year better off which can't be sniffed at.
     
  5. steveroberts61

    steveroberts61 New commenter

    Phoned the TPS today and they stated that if I left it until December then it would run from Dec 08 to Dec 18 and they would not go back to the previous April for the best figure.
     
  6. BELLACJ

    BELLACJ New commenter

    I wonder if you would be told the same thing if you spoke to someone else? A few people seem to have been given that information about going back to the previous April so presumably at some point it may have been correct? The dilemma of what to do continues. . . . ,!
     
  7. steveroberts61

    steveroberts61 New commenter

    The bloke I talked to was quite adamant that it would not go back to April and I asked him a couple of times about the 10 years. It would be nice if it did but will probably opt out pretty soon.
     
  8. BELLACJ

    BELLACJ New commenter

    I think we have to accept they will go from the exact months stated. My average salary actually went up again this month but I know it will start its decline next month! Need to get the calculator out again ( oh joy!) and make that decision soon.
     
  9. steveroberts61

    steveroberts61 New commenter

    Yes mine went up for March also but I know it will start dropping at about £50/month so not a cliff edge but those months will soon start eating into the best average. I am basically paying into a very expensive death in service insurance policy from April onwards!!!!
     
  10. steveroberts61

    steveroberts61 New commenter

    Filled in the online opt out form today. My heart was racing. It seems like a massive step after being in it for most of my adult life but it had to be done. I can't see the point of paying in to lose out. Its such a shame that TPS members 50+ are basically being forced to opt out because of the drop in CPI and the virtually zero pay rises year in year out.
    Hope I haven't made a mistake!!!!!
     
  11. BELLACJ

    BELLACJ New commenter

    Well done steveroberts61! I think I’ll probably be doing the same thing very shortly. It does still seem a bizarre situation that some of us are facing and as you say, a bit scary after paying in all these years. Resignation going in next week too- in for a penny in for a pound! Then it will soon be a reality - can’t wait!
     
  12. poppy45

    poppy45 New commenter

    So basically, you are saying that it would be better to opt out now rather than wait until August 31st. I aim to retire September 1st but if it means the value of my pension decreasing then perhaps I should opt out now. Feeling very confused as I thought that by contributing for the next few months would actually boost my pension. Advice needed!
     
  13. mjfp509

    mjfp509 New commenter

    You need to look at your best 3 years service out of the last 10. You can do this if you log in to Teacher's Pensions Website with your details and it tells you your best three years service from the last 10, uprated for inflation. For some, this shows a better salary than some teachers are on now ! If you had a higher salary approx 10 years ago (e.g. promotion, TLR, HoD, etc.) and you have a lower salary now, you could lose out if you don't opt out. If the details are showing you had a better uprated salary then than now and that will drop off in the next month or so, you might be better opting out now, but given your circumstances, the chances are you will probably be better staying in the scheme.

    It all depends on your circumstances. Hope this helps. If you are still unsure, phone up TP and ask them.
     
    Last edited: Apr 13, 2018
  14. mjfp509

    mjfp509 New commenter

    Given that you will retire in August (4 months - lucky you !), unless you had a larger salary ten years ago to now, that is just about to drop out of the equation, I very much doubt whether you will be losing out at all. I believe opting out can take up to two months in any case, so given your time frame, it is cutting it tight.
     
  15. Dorsetdreams

    Dorsetdreams Occasional commenter

    Hi Steve,

    I know that me asking you this does not help you, but are you quite sure you are making the right decision?

    You are a protected member, so even if your average salary were to drop, this is only party of the calculation. You are still adding years if you stay in the scheme.

    And are you really sure that your average salary will actually drop? This is very likely if you took a pay cut at some time. But if you didn't, your average salary will probably just 'stagnate' over time, like our real salaries have. This does represent a real terms loss, but, in my case at least, this won't start to have an effect for another year.
     
  16. poppy45

    poppy45 New commenter

    Thank you for your advice. I was on a much higher salary 10 years ago, my best 3 yrs stated on the TP website were April 08 to March 11. From what you’re saying, taking into account the CPI rates back then, by waiting until September to opt out my pension will be lower than if I do so now because my best 3 yrs will run from Sept 08. I think I will phone TP and ask for a quote.
     
  17. mjfp509

    mjfp509 New commenter

    I am glad I helped a bit.:)

    You could be losing out by not opting out if your your salary was much higher then, although you are not going to have much time left if you opt out now ! Please update on here what you find out from TP, as would be very interested to know.
     
  18. steveroberts61

    steveroberts61 New commenter

    I did the calculations from the revalue salaries they sent me. I think all the dates add up but the best 3 are dropping. My salary has always gone up or stagnated but because of the cpi rate, it is higher for those years. The revalue drops by about 3k from 2010 to 2011. If I let it run until December when I will retire early my pension will be around £20/year less. Now this doesn't sound a lot but I will be paying from now to December for nothing and I would rather have that in my pocket. I could have my figures wrong of course or they could have sent me incorrect values. If the best average drops next month on the tps then I know I made the correct decision and calculation. If it doesn't I will be mildly peeved. steve
     
  19. wdywwdyw

    wdywwdyw New commenter

    I thought the revalued salary B used the
    "MULTIPLIERS FOR PRESERVED PENSIONS AND PRESERVED LUMP SUMS"
    tables produced by the gov. Each historical month s assigned a multiplier and you factor each months actual salary with the relevant multiplier and then work out the highest 36 month rolling average I the last 10 years?

    The yearly CPI's are just used for the pension increases?

    Like an awful lot of people, my best 3 years is 08-11 (Oct for me) and TPS don't seem to have factored in the recent new table yet????.....
     
  20. renetik

    renetik New commenter

    Help please!

    The (independent) school at which I work has held salaries at the same amount (i.e. no increase in pay) from 2013/14 to 2017/18. When I received from the TPS my pensionable salaries for the last 10 years with CPI applied I discovered that, as a result of not having a salary increase (for the years as stated), they have not been enhanced by CPI at all. The TPS explain (justify?) this by saying that because there was no increase in the salary in those years, then no CPI enhancement is applied at all even for years following the year for which the salary was held. Therefore, I have for each of the years from 2013 to 2018 exactly the same unchanging pensionable salary. Has anyone else come across this or a similar situation and outcome, please? Now, for most teachers, there was one year when there was 0% CPI enhancement which followed the year when there was no teacher pay increase generally, but please can I ask: have you found that this is then carried through in the years following such that no further years' CPI enhancement are applied to the salary for that particular year?

    Also, please can someone explain why the years up to 2013 show several CPI enhanced salaries for each academic year, whereas those for the years stated above just have the one salary entry for each year?

    And finally, is anyone aware of pitfalls of opting out and freezing your pension and then immediately taking it? (I think there are odd references to this is the foregoing thread.) This is an alternative to the standard spiel from TPS that you need to resign your contract and have a day's break before resuming in order to take your pension in the circumstance where you wish to take your pension and continue teaching.
     

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