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New Information at TPS on Benefit Statements

Discussion in 'Retirement' started by PeterQuint, Nov 17, 2019.

  1. PeterQuint

    PeterQuint Lead commenter

    For anyone who checks their benefit statements on TPS regularly, there's something new now showing (or at least I've not seen it before).

    Under the top section where you're given a total of your two pensions (Final & Average), the next section has always been 'Summary of Benefits'. Click to open that and you've had one sub-section for the Final Salary section, and a second for the Career Average section. There's now a third called 'Average Salary Breakdown', which tells you how each year of your final salary pension is calculated for purposes of finding your best 3 years from the last decade.

    I've looked at the last statement I downloaded, which was on the 30th October, and it was on that statement - I just missed it!

    The statement I downloaded before that on 8th July didn't have it. It's obviously appeared some time in between, but I don't know when.

    Sorry if you were already aware of it, or if it's already been discussed and I missed it.

    I've found it very informative.
     
    Lalad and yodaami2 like this.
  2. TonyM19

    TonyM19 New commenter

    Interesting

    Went to check my Benefit Statement and its not available

    Unfortunately, it’s not been possible to provide an online Benefit Statement at this time.


    You can view a Benefit Statement if you're currently or have been employed in a teaching capacity, and: -


    • have pensionable service (or employment which would be pensionable had the relevant election been made), and
    • have qualified for benefits, and
    • haven't already claimed benefits from Teachers’ Pensions

    Due to the complexity of some benefit calculations a minority of members won’t be able to successfully view a Statement.


    I took 25% phased retirement 3 years ago and xtended it to the ffull 75% phased retirement this September. I could always see a Benefit Statement up until September. Is this new?
     
  3. diddydave

    diddydave Established commenter

    Not sure, now my wife has claimed her benefits she no longer can see benefit statements nor a history of her employment etc. which sounds similar to what you are seeing.

    I, as PeterQuint says, can see this new set of numbers which are most useful if you are still in the scheme. For deferred members (which I am), and I presume opted-out members too, it can be a little trickier as they revalue up to the point you left the scheme only. What then happens is that the pension is also calculated to the date you left the scheme, for me it was 2017, and then the pensions increase is applied to the date on which you take the benefits.
     
    PeterQuint likes this.
  4. yodaami2

    yodaami2 Lead commenter

    OMG much more informative! See that revalued salary 10 years ago dropping off!
     
    PeterQuint likes this.
  5. Dorsetdreams

    Dorsetdreams Occasional commenter

    OMG indeed!

    That jump in the "Salary Revalue Index (%)" in May 2011, 9.5% to 18%, has me concerned. I have no idea why there should be such a sudden change. Do you all see that on your statements?
     
  6. diddydave

    diddydave Established commenter

    Something similar:
    01-04-09 to 31-03-10: 17.81%
    01-04-10 to 31-08-10: 16.34%
    01-09-10 to 31-03-11: 14.27%
    01-04-11 to 28-02-12: 9.09%

    All due to inflation in those years...I believe they were:
    2009: 2.2%
    2010: 3.3%
    2011: 4.5%
    2012: 2.8%
    2013: 2.6%
    2014: 1.5%
    2015: 0.0%
    2016: 0.7%
    2017: 2.7%
    2018: 2.5%
    (Source: https://www.statista.com/statistics...e-consumer-price-index-cpi-united-kingdom-uk/)

    So the sudden change is because 2011 was the largest inflation figure. The extra is due to the cumulative effect

    Add in to this that the 2011-2013 period was when there was a pay freeze then the revaluations of those years makes even more difference.
     
  7. heldon

    heldon Occasional commenter

    I escaped summer 2018 which meant a big 5.2%I think it was, was held in the calculation. My actual salary was £41800 when I finished, this was re valued to just under £47k.
     
    eljefeb90 likes this.
  8. diddydave

    diddydave Established commenter

    Yes, it's quite stunning to see just how much effect the pay-freezes and below inflation pay-rises have had on salaries...your example being about 12% down in real-terms.

    I've just put up another post as I wished I'd looked into it more deeply when we moved to Career Average as I can see now, and if the conversation I've just had is correct, a no-brainer that everyone should have opted out for the first month of the career average to get the best of both worlds on the hypothetical calculation.
     
  9. heldon

    heldon Occasional commenter

    I was on a conserved salary for the last three years of my career, or the %age would have been less.
     
  10. diddydave

    diddydave Established commenter

    Just checked mine...about 10% below
     
  11. TonyM19

    TonyM19 New commenter

    Called TPS to try to get to get some form of Benefit Statement. They absolutely did not fill me with confidence.

    First up, 'If you've taken 25% and then 75% you have taken all your pension that's why there's no statement'

    Once we'd cleared that up, they were unsure how to find out how much reckonable service I had left. They described a method that made no sense at all

    I asked for my new Average Salary (one of my motivations for the phased retirement was my best 3 in 10 dropping off this September) but was told it was complex and they would contact me in writing within 8 working days

    I intend to do another 3 years, but I'm planning to opt out. My understanding is that that will freeze my reckonable service and my Average Salary until I claim my final 25% of pension. Does that sound right?

    I will be about £250 a month better off now if I opt out. That's £9k over 3 years. I undetsrand I lose the death in service stuff
     
  12. Prim

    Prim Occasional commenter

    Wow, just checked mine, very useful and I need to opt out for a month as diddy dave states.
     
    diddydave likes this.
  13. diddydave

    diddydave Established commenter

    Would love it if the unions would take this on board and push for the transfer from Final Salary to Career Average to be considered a break that would trigger the hypothetical calculation!
     
    strawbs and Prim like this.
  14. PeterQuint

    PeterQuint Lead commenter

    Glad this information is pricing useful.

    What a shame we weren’t informed automatically that we could now see this?

    How difficult would it have been to send an email to everyone in the scheme who has an account?

    Of course, one issue will always remain. We can see the past, but future calculations will need to be based, in part, on future inflation rates. And we don’t know what they are until they happen.
     
  15. meister

    meister New commenter

    Or when we will shuffle off this.......
     
  16. diddydave

    diddydave Established commenter

    Whilst that is true the index-linking means we can make comparisons just using today's values knowing that they will be index-changed to be the equivalent in the future.
     

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