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Tapered query

Discussion in 'Retirement' started by happilyconfused2, Aug 22, 2019.

  1. happilyconfused2

    happilyconfused2 New commenter

    I am due to transition to the CARE scheme next spring. Does that mean I get 'two' pensions?

    I want to retire in a couple of years. Does in mean that I get the old scheme benefits immediately but will have to wait for the CARE to kick in at a later date? Or does everything go into the new pot and I will have the scheme retirement age of 65 and not 60?
  2. PeterQuint

    PeterQuint Lead commenter

    Yes, you’ll effectively have two pensions.

    However, once each has been calculated, it’ll be paid as one.
  3. happilyconfused2

    happilyconfused2 New commenter

    I was just checking as I was considering opting out if everything was to be linked to 65. So in effect, the old scheme is ring-fenced.

    So if I retire at 57 then the part in the old scheme will have ARB linked to 60, whereas the CARE part is linked to 65 and so will have a much bigger ARB reduction?
  4. paulstevenjones

    paulstevenjones New commenter

    Well it’s tricky as government currently considering Firefighters’ Judgement so you may not transfer to CARE. Read the thread on this further down.
  5. diddydave

    diddydave Established commenter

    First of all nothing is settled because of the court case over age discrimination that the Government lost. It's likely to be a year before the tribunal rules on how to correct that issue though I believe it has been said that no-one will be worse off than if they had remained in the final salary or have accrued more already in the CARE pension. Even then the ruling will be for the judges and firefighters and agreements on the other public services will have to be reached - so it could be longer.

    So until those decisions are made you'll be unlikely to get a definitive answer.

    As it stands then yes you'll have two pension schemes, the old final salary - depending on when you started - will have an NPA of 60. I'm not sure if your CARE is 65, that depends on your DOB but could be 66, 67 etc.

    If you go at 57 then you have to take both parts with AAB reductions. If you wait til 60 you can take them separately. The reductions are here: https://www.teacherspensions.co.uk/...ement/early-retirement-factors-july-2019.ashx

    At 57 your final salary is 0.88 (so 12% less), the career average is 0.681 (so 31.9% less) but many of us have found that, because of the extra years you are getting a pension for, you aren't any better off waiting until you are in your late 70s.

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