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How is revalued Salary B calculated by the TPS?

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

  1. Dorsetdreams

    Dorsetdreams Occasional commenter

    This sounds so wrong that I suspect some mismatch between the question you were asking and the answer you were given.

    I assume that your 'best three' years are before 2013. That's what one would expect if you've been on a static salary (or one falling behind inflation), if the CPI adjustments have been made correctly through the following years.

    This being the case, there is no point in considering the CPI adjusted pay from later years. Those years will not affect your final salary calculation. Does that make sense? Could that be what you were being told?

    (I have twice asked TPS, via their on-line message system, to tell me my CPI adjusted pay going back 10 years. They do not respond.)
     
  2. steveroberts61

    steveroberts61 New commenter

     
  3. steveroberts61

    steveroberts61 New commenter

    I never got a reply with my online questions. It took quite a few phone calls before I finally got my 10 years CPI adjusted figures. On this information I froze my pension because I was paying in for no real increase.
     
  4. richest1

    richest1 Occasional commenter

    What about if you are still buying back added years up until the NPA point aged 60. My wife retires age 60 next summer. You cannot opt out then?
     
  5. Brianthedog

    Brianthedog Occasional commenter

    Following with confused interest. Trying to get an answer from TPs is impossible! Maybe someone here can help.
    Looking at the TPS website, it tells me the following
    Average revalued (B) salary £46,238.76
    Best Ave salary period 1/11/2008 - 31/10/2011
    I reach 60 on 7/11/2019

    Looking at those figures, would I be better dropping out of the pension scheme now or continue until I'm 60?
     
  6. Dorsetdreams

    Dorsetdreams Occasional commenter

    Unless your salary took a serious nose-dive after 31/10/2011, your pension will keep increasing over your last year. (Your revalued salary will probably fall a little, but this will be more than compensated for by having another year in the scheme.)
     
  7. chunter1

    chunter1 New commenter

    I am trying to work out projected pension and was advised they look back ten years from leaving to calculate your best salary. At the moment my pension looks ok but if I stay for another 5 years and then they count back 10 this was when I was only working 2 days a week so my final pension would be worth nothing. I am confused. Anyone got any ideas please.
     
  8. phatsals

    phatsals Established commenter

    I'm not quite sure what you're asking, I assume it's about p/t working. 'Best 3 years' is 1095 days p/t, ie if you were 0.5 your 'average salary' would be calculated over 6 years.

    Ask TP for a statement of your last 10 years salary uprated for inflation. You will be able to see from that the effect, so far, of your p/t years. It's complicated but if you get your own figures you can make some informed decisions, at the moment you don't have much to go on.
     
  9. steveroberts61

    steveroberts61 New commenter

    I got the figures from the TPS and then did some calculations based on the best 1095 days. I could see from these that the figure was dropping and as it was still higher than my final salary I froze it in April last year. I retired in December last year and my pension was what I calculated at. It worked in my favour to freeze it and I also saved 10 months of contributions.
     
  10. fariduddin

    fariduddin New commenter

    Re FINAL SALARY pensions
    For most people their last 12 months is their best salary. I think you can use the average salary in last 12 months or best 3 years from the last 10 years for final salary pension.
    For anyone working part time, the full time equivalent is used.
     
    richest1 likes this.
  11. diddydave

    diddydave Established commenter

    I think you'll find that due to the below inflation wage increases that for most people it is their salaries from 10, 9 and 8 years ago that are their best 3. This is because their salaries are all 'revalued' using the CPI inflation figure.

    I did my own calculator sheet but I only did it to work out full-time salarys: https://docs.google.com/spreadsheets/d/10x-lKLuc0PXi9C5JftanxmFVVh0PxNYKYEa70xljn38/edit?usp=sharing
     
  12. diddydave

    diddydave Established commenter

    1st idea: Get a professional around to go through YOUR numbers. We had someone from Wesleyan do it for free. I'd been through our numbers so was reassured that they came up with the same figures.

    Other thoughts (I am no expert so check these with one!).
    Your 10 years are measured backwards from you last contribution and are based on the full-time equivalent salary - so don't panic about the actual wage that you got for your 2 days work, but do get your salary revaluations done. Ask TPS for them, they're usually pretty quick.
    You can freeze the 10-year period simply by opting out of the TPS, but watch out for being automatically re-enrolled!

    Do be concerned about the amount of 'service' time you will be credited for. If (in the final salary scheme) your average salary is dropping (many are due to the CPI inflation figures) then the extra service you are putting in now may not be worth you staying in the scheme. (For instance, if you are on 0.2 for 5 more years you will only get 1 year of actual service added to your final calculation but your salary will be the best 3 from 2014-2024.)

    As a rough guide your comparison calculations will be:
    (years of service)/80 * (revalued salary average 2009-2011)
    against
    (years of service + 1)/80 * (revalued salary average 2014-2016)
     
  13. fariduddin

    fariduddin New commenter

    Thanks diddydave, waiting to get my figures for phsed retirement which starts on 23rd April. Am taking 25% of my pension on ARB and carrying on my HT role on 0.7FTE in job share scenario. Hopefully the pension sum is more than I was anticipating.
     
  14. Doris888

    Doris888 New commenter

    Hi, I hope that you can help me. I'm having a horrible fight with TP over my average salary. I have been tracking it for the last six months of my service before I retired in August 2019. Their initial calculation had one average salary, but the recalculation has another (nothing has changed in my service history to warrant this change). I noticed from your post that my best three years are the same as yours - 01/09/09 - 31/08/2012 and my salary is exactly as yours is in the highlighted green part of the table. I have done a massive calculation of my salary every month using the multipliers and it comes to significantly more than what TP say in their recalculation. Do you know what the actual average revalued salary is for the three years that I have mentioned? TIA
     
  15. diddydave

    diddydave Established commenter

    Yes, I think this is something that was mentioned elsewhere in this thread. The recalculation is done when your salary changes and in the years in question the salary does not change for 3 years (1/9/2010 to 31/8/2013) - these were the years where a pay freeze was made.

    The real kick in the teeth is that when the revaluation is done it is done to the salary figure on the day before it changes...and then that is the revalued salary for the WHOLE period where that was the unchanged salary. So with 3 years of pay freezes our salaries miss out on 2 years worth of inflation - 3% and 7% respectively - as you say a LARGE difference.
     
  16. diddydave

    diddydave Established commenter

    I've just made the alteration to the spreadsheet that now takes into account the effect of only changing by the latest figure. Does this now match more closely what the TPS are telling you?
     
    Ivanhoe likes this.
  17. diddydave

    diddydave Established commenter

    £41,345.44 is the figure it now comes up with...
     
  18. Ivanhoe

    Ivanhoe New commenter

    Your spreadsheet tallies with mine and my last 10 years re-valuated salaries.
     
  19. diddydave

    diddydave Established commenter

    The relevant part of the regulations is this I believe:

    "P's increased relevant salary during any period is P's relevant salary during that period calculated as if P's relevant salary during any relevant salary period were increased by the amount (if any) by which, immediately before the end of P's average salary service, it would have been increased if it had been an official pension within the meaning of section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the same day as the relevant salary period ended."

    I can see that the very last part could be interpreted as applying to the whole period using the multiplier for only the very last day.
     
  20. Doris888

    Doris888 New commenter

    Thank you very much.
     

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