TPS FAQs

TPS age discrimination FAQs

Find out how recent changes to the Teachers’ Pension Scheme (TPS) will affect you, and whether you need to take any action now.

BIG changes were made to the Teachers’ Pension Scheme on 1 April. is stems from the age discrimination in the public sector pension schemes introduced in 2015. Protections meant older members of the TPS remained in the nal salary scheme or delayed joining the career average scheme when younger members transferred into the career average scheme in April 2015. is was found to be unlawful.

To rectify the discrimination, eligible members will get a choice between nal salary scheme bene ts or career average scheme bene ts for the period 1 April 2015 to 31 March 2022. Members will be expected to choose at the point of retirement.

Am I affected? If you were a member of the TPS on 31 March 2012, remained in service on 1 April 2015 and haven’t had a more than ve-year break since then, this a ects you.

Why are people who joined after 31 March 2012 not affected? Because legally they would not have had the option of staying in the nal salary scheme, whatever their age. ey would have all been moved into the career average scheme on 1 April 2015.

Will older members who stayed in their fi nal salary schemes until 31 March 2022 get the same choice between fi nal salary and career average? Yes. What happened on 1 April? All members of the TPS moved into the career average scheme. is includes those older members who previously had full protection.

What happens to the service I’ve built up in the fi nal salary scheme? is is protected and will be increased in line with consumer price index (CPI) in ation until you take your pension.

What do I need to do if I am affected and haven’t left the TPS? Nothing. You will be contacted by the TPS and will receive an annual statement showing the comparison between nal salary and career average for the period from 1 April 2015 to 31 March 2022. You will only have to make a decision when you take your pension.

Are there any groups who will have to make an immediate decision? Yes, people who left the TPS between 1 April 2015 and 31 March 2022 who have taken or moved their pension bene ts. ese include retirees, people who have transferred their pension out, divorcees, those who have taken ill health retirement and death cases (their representatives in this case).

Will teachers have to pay extra because of this decision? e NEU does not believe teachers will end up paying extra but this will be determined by the 2020 valuation of the TPS, which is expected to be completed (at the time of writing) in March 2023. e Government intends to pass the cost of xing the age discrimination on to the TPS so that it is borne by employers/employees. e NEU has pointed out the unfairness many times of making employees potentially pay for their own compensation.

What about members of the Local Government Pension Scheme (LGPS)? Compensation for members in the LGPS is di erent due to the di erent structure. All LGPS members were moved into a career average scheme in 2014. Older members had the additional protection of an ‘underpin’, guaranteeing them the better of career average or their previous nal salary scheme. is will be extended to all members for the period 1 April 2014 to 31 March 2022.

WHERE CAN I GET MORE INFORMATION?

Teachers’ Pension Scheme: teacherspensions.co.uk

Local Government Pension Scheme: lgpsmember.org

NEU pension advice: neu.org.uk/pensions

Sign up with TPS MyPensionOnline to keep up to date. You will need a National Insurance number and an email address.