1 / 7

Changes to the Teachers’ Pension Scheme 1 April 2015

This guide outlines the impact of changes to the Teachers' Pension Scheme effective from 1 April 2015, detailing how different member groups will be affected in terms of pension schemes and contributions. It explains the transition from final salary to career average and new contribution rates based on salary levels. Part-time and overtime work adjustments are also discussed, along with employer contribution rates.

unity-bonner
Download Presentation

Changes to the Teachers’ Pension Scheme 1 April 2015

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Changes to the Teachers’ Pension Scheme 1 April 2015 “At a Glance Guide to who is affected”

  2. Who is affected? Members who have full protection - These are members who were active immediately before 1 April 2012 and who were within 10 years of their Normal Pension Age (NPA) on that date. These members will remain in final salary. Members who have tapered protection – These are members who were active immediately before 1 April 2012 and who were within a further 3.5 years of their NPA on that date. These members will remain in final salary for a tapered period of time until they then move into career average on their “transition date”. Transition members – All other existing members will enter career average on 1 April 2015. New starters - Join career average on entry if they start teaching on or after 1 April 2015. Pensioner and deferred members are not affected by the changes unless they take up further employment. The tables below highlights the changes from 1 April 2015.

  3. EMPLOYEE TIERED CONTRIBUTIONS – 1 APRIL 2015 Member contributions are based on their salary, so the more they’re paid, the higher their contributions. From 2015 the new member contribution rates are shown below:

  4. Further communications will be issued shortly, providing more detail on how to calculate and what is and isn't included. Please ensure that members are aware of the changes to their contributions. Part-time members - changes In the past, for someone working part-time, you looked at the row corresponding to the member’s full-time equivalent salary. From April 2015, this will change; instead, you’ll look at their actual part-time earnings. For example, if someone worked 50% and had a full time equivalent salary of £50,000, their actual earnings would be £25,000. Under the old structure, the member would pay 10.2% of £25,000. Under the new structure they’ll pay 7.4% of £25,000. Those working overtime In the Career Average arrangement (but not the Final Salary), overtime is included in the salary used to work out the contribution amount but not in working out which tier to use. Based on the example above if someone was in the Career Average Scheme and earned £1,000 of overtime, they would pay 7.4% of £26,000. (Please note that the £1,000 overtime doesn’t change the contribution rate).

  5. And finally……. • Employer Contributions • The contribution rates for employers are: • 14.1% from 1st April 2015 until 30th August 2015 inclusive • 16.4% plus an administration charge of 0.08% from 1st September 2015 (16.48% in total)  • Croydon TP Team • November 2014

More Related