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Phased Retirement Question

Discussion in 'Retirement' started by Plasgwyn, Jan 24, 2020.

  1. Plasgwyn

    Plasgwyn New commenter

    TES Community hive mind: can anyone answer this query, please? I am aware that when taking full benefits on retirement at or after NPA your salary plus pension cannot exceed your revalued annual salary otheriwse your pension is affected. Is this true of Phased Retirement also? It looks to me as if it is possible that by taking maximum benefits (75%) at Phased Retirement, added to your new 20% reduced salary, you could earn more than you were when working full time and maybe more than your revalued average salary. Am i right in my thinking? Many thanks in advance.
     
  2. 50sman

    50sman Lead commenter

    Once you reach your NPA you cannot take phase retirement as you are of the age to retire
    Check with TP but I think I am right
     
  3. Plasgwyn

    Plasgwyn New commenter

    Thanks for the reply, but I don't think that's true. TP website says "To be eligible to claim Phased Retirement, you must be between the age of 55 and 75".
     
  4. 50sman

    50sman Lead commenter

    Ring TP and let us know the answer
     
  5. bradnut22

    bradnut22 New commenter

    Hello, Phased retirement requires you to reduce your salary for one year by at least 20%. After that year you can go back to earning the extra 20% or more. You do not have to register as re-employed (you never stopped being employed in most cases) as those who who take their full pension at NPA have to do. Therefore as long as you are on phased retirement you are not caught by the salary of reference provisions. Of course, when you fully retire you may be caught unless you took phased retirement before NPA. Anyone taking an actuarial reduction is not caught by the salary of reference provisions. I have known people retire at 59 and 11 months so that they can be re-employed on full salary a day later but not have their pension sanctioned. Of course, if you take phased retirement at or after NPA and have a lot of service, it is quite likely that you will be better off working 4 days with your pension and 4 days pay. The pension is only taxed with no other deductions. There is nothing to stop you taking phased retirement after NPA as long as your employer agrees to the reduced hours or you find another job within the TPS with the 20% reduction within 3 months of having the higher salary.
     

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