Teacher Pension Calculating the Final Salary

An explanation of how the final salary for the Teachers Pension scheme is calculated.

[swright]

Thank you for explaining all of this. Everyone should have a look at this, if their pension is based on Final Salary. Even though I looked at the official Teacher’s Pension site, your video made it clearer to me. The part about temporary responsibilities is especially interesting even though it doesn’t apply to me. Having lived abroad I wasn’t aware of the recent changes. I found all of your videos useful.

[marklister]

Thanks for your speedy reply. Much appreciated.

[CTay-eyfx]

That’s what I thought. I had emailed TPS prior but they didn’t reply .. and I forgot! Never mind, it’s not too much of a variant I think and I’ll keep a closer eye.
I do appreciate your response - am I ok to run another couple of things by you in the near future - I’m considering going part time in the best future (at 59) and wondering whether I should opt for the phased retirement route - it’s why I was looking in the first place when I saw your video about this!

[BryanWills-ve]

Regarding the calculation of the 10 year salary range. I have a question. I opted out with my last day prior to the months opt was 31st Dec 2023. Re-joined the scheme a month later. Is year 1 of the 10 years, the salary as it was on the 31st Dec 2023, with Year 2 the salary on the 31st Dec 2022 etc. Or is it the highest salary within each of those whole years. Makes a bit of a difference to me but still positive either way. A wonderful collection of videos. Many thanks.

[CTay-eyfx]

Hi David. Your videos are so helpful! My benefit statement says my best years are 1/32014 to 28/2/2017 using method b. Am I too late to opt out for a month to protect this? I’m confused because it’s showing as in year 10 in the first column but we are more than 10 years past 1/3/2014. Hope this makes sense!

[marklister]

Is it worth paying more into your pension if it is calculated on a final salary scheme. Thanks.

[davidogarr]

If my salary increase significantly, how long do I need to stay at this salary to benefit fully?
Thanks David

[neilsmith]

Can you help me out with this please David? I have just noticed that my wife's pension has gone down dramatically using Method B from approximately £20k to £16k. She was a deputy in a large secondary school on £58k a year (ish). Her best 3 years on this salary were 1/4/08 to 31/3/11. She had a break in pensionable service after an "academy reshuffle" from 1/6/11 to 31/1/13 whilst she was trying to find a job. She got a job as a classroom teacher on a considerably reduced salary on 1/2/13. She came out of the TPS on 31/3/15 when it switched to career average. She finished teaching altogether on 31/8/21. Will a hypothetical calculation be used to calculate her final salary given that she had a break in service? I am hoping that when she comes to claim her pension the Method B sum we are now looking at won't be used and a hypothetical calculation will give a figure nearer to the £20k it was 2 years ago. Thank you. Neil.

[robertpayne]

Hi - The restricted salary provision says 10% over the last 3 years. In your example I don’t understand why you don’t calculate this from 2019 but use 2020? Given teachers have received 5% then 6.5% pay rises in 22-23 and 23-24, doesn’t the 10% figure become instantly relevant?

[danielc]

Hi @dfountain, now that we are in the career average scheme, if i have some pension in the final salary scheme will this still be calculated from when i retire or from when i was moved in to the career average scheme in 2022? I know for most this will be worse but as I am going part time I would prefer 2022!

[aaqr]

Hi David. I was just using your Final Salary calculation spreadsheet. I've put in my 10year salary in the white boxes but the "Best 3-year Average Final Salary" column seems to show "#Name?!" error!
Any idea why that might be the case.
It is definitely 10 years since the 10 year warning isn't appearing.
Thank you