ManchesterTown Hall
PO Box 532
Manchester
M60 2LA
Circular letter
To: Head Teachers, Principals, Bursars, Business and Finance Managers of all schools including academies
Our reference:Teachers’Pension Scheme 2015 – Flexibilities to share with teachers and display on notice boards / To reply please contact:
Technical Pensions Team
Tel: / 0161 277 1691
Fax: / 0161 274 7192
Email: /
Date: / 24 March 2015
Circular Category:
Policy / X / Procedure/Guidance / EventX / Training / X / Finance / General
Circular no: / 0873
Title: / Teachers’ Pension Scheme Flexibilities from 01 April 2015 – timescales
Alert status: / RED
Summary: / The Teachers’ Pension Scheme (TPS) is changing. There will be new flexibilities for those in the Career Average Scheme 2015. There are time limits in which to apply for these. It is important for each teacher to understand their own membership type in the Scheme and which flexibilities they can choose as some flexibilities are only available to those in the new TPS2015.
The TPS website contains a lot of information for teachers. Please circulate this information to all teachers including absentees.
Previous papers: / NA
Action required: / Send circular, poster and fact sheet to all teachers and display them
Contact officers: / Technical Pensions Team (Debbie Thomas and Liz H Collier)
Attachments: / TPS Poster 2 and Flexibilities Factsheet
Dear Colleague,
The TPS – Flexibilities available from 01 April 2015 to communicate to teachers
The new Teachers’ Pension Scheme will be launched on 01 April 2015. Some members of the current TPS will remain in that Scheme with a Final Pay link. Some members will join or move to the new Career Average Re-valued Earnings (CARE) scheme on 01 April 2015, and others will move at a later date specific to them.
Different types of member can access different flexibilities
It is important that each teacher understands what type of member they are in the TPS and uses the TPS website to learn about which flexibilities they can choose.
Please circulate and display the TPS Poster 2 which tells members how they can find out what type of member they are.
It is essential that all member records are accurate and up to date to inform the type of membership. Please ensure that your payroll provider is aware of, and up to date, on all actions including leavers, new recruits, retirements in progress, and so forth. Missing Service Queries must be sent to:
and include full name, teacher reference number, payroll number, national insurance number, dates missing and associated school for those periods.
The TPS have developed a range of fact sheets for teachers which cover key elements of the new Scheme. There are also Member Profiles on the website which explore different member types and how the changes apply to them.
Thesefact sheets should already be displayed prominently in your establishment.
Flexibilities
The flexibilities available to members who remain in the final salary arrangement are Additional Pension and Teachers’ Additional Voluntary Contributions (TAVCs).
Flexibilities available to members who are in the career average (CARE) arrangement are Additional Pension, Faster Accrual, Buy Out of the standard actuarial reduction of 3% and TAVCs.
Overall limits apply to the flexibilities, the details of which are on the website and will depend on the member type.
So that teachers can understand how these flexibilities work for them please send electronically, or give each teacher, a copy of the Flexibilities Fact Sheet and remember to include those absent for any reason. There is more information on the TPS website.
Flexibility Applications – the timescales
TAVCS
The process has not changed.
Additional Pension for those in the final salary arrangement
The process has not changed but check the new threshold.
Faster Accrual, Buy Out and Additional Pension for those moving to the career average (CARE) arrangement
Information about what these mean are on the TPS website.
Teachers need to check their overall threshold.
Buy out elections can only be made by those in CARE. Elections must be made within 6 months of entering CARE. Contributions will be made throughout the teacher’s career unless they leave service for 30 days or more.
Faster accrual elections can only be made by those in CARE, last for one financial year and begin on 01 April. Elections must be made in the year before the teacher wants to take the election i.e. for the financial year 1 April 2015 to 31 March 16, before1 April 2015. Ideally, in future years, you will make your application before the end of January. Those entering teaching mid year can make an election for that year but it must be made within a month of entering service.
Up to 1 April teachers can only apply for faster accrual in paper form. The link is on the TPS website at:
The TPS will notify the teacher and employer of accepted and rejected applications. As the factors are not yet available to the TPS, confirmation of deductions is not available until after 1 April and deductions will be taken after that.
After 1 April and in future, members must complete the flexibilities form on My Pension Online. The form covers all three flexibilities and the teacher only completes the applicable ones. Only the options available to that member will show and an eligibility check will take place to ensure that the teacher only applies for flexibilities within their limit. Employers will be sent the application by the TPS to confirm employment or reject the application, after which the TPS will accept or reject the request(s). If accepted, your employer will confirm the percentage deductions and dates for faster accrual and buy out, and lump sum or monthly amount for additional pension. The TPS will confirm the reason for rejection or acceptance.
Summary
The TPS website contains a lot of information about flexibilities in the TPS. Some have strict timescales in which to make elections. Overall limits apply. The member type will inform what is available to them.
Employers must communicate the changes to teachers. Please circulate this Circular, fact sheetand poster to teachers. Pleasealso print and display these prominently in your establishment.
MCC officers cannot provide members with advice and members may want to seek independent financial advice when considering their pension options.
Where the TPS website or helpline can not resolve queries, your key contacts are:
Technical Pensions Team
Debbie Thomas
0161 277 1691
Liz Collier
0161 227 3395
For operational queries:
Missing Service email
Academy queries:
Kerry Johnson, Team Leader, Academy Support Team
0161 277 1906
School Queries (teachers):
Kerry Johnson, Team Leader
0161 227 3888
HR, Staff Consultation and Trade Union Engagement:
Danielle Garside
Employee Relations Manager for Education and Skills