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.

TPS Pre 2007
Teachers’ Pension Scheme design.
Final Salary
TPS 2007
Final Salary
TPS 2015
Career Average
Accrual Rate (The formula or rate of “accrual which uses service and /or salary to work out your pension benefits)
1/80th pension plus automatic lump sum
1/60th pension
1/57th pension which is increased each year the member is in service by indexation plus
1.6%. If a member is deferred
(out of service) the increase is by indexation only
Pensionable pay used in calculation of benefits
Average pensionable earnings Average pensionable earnings
Pensionable earnings for each year now including overtime

Normal Pension Age
Flexibilities
Lump Sum
60
Additional pension from 1
January 2007
65
Additional pension
NPA equals State Pension Age
(SPA) or 65 where that is higher
3 options: Additional pension, faster accrual and buy out of actuarial reduction
Automatic lump sum = 3 x pension
No lump sum but can convert part of pension to receive an optional
No lump sum but can convert part of pension to receive an lump sum optional lump sum
Death Grant (one off payment where a member dies before becoming entitled to their pension)
3 x final average salary (Active 3 x final average salary (Active member) member)
3 x final salary at date of death
(Active member)
Phased Retirement
From 1 January 2007 the opportunity to take 2 phased retirements before final retirement
Opportunity to take three
Opportunity to take two phased retirements before final retirement phased retirements (2 before aged 60) before final retirement
Actuarial Adjustment (where benefits are been taken before
NPA)
Benefits actuarially adjusted by approximately 5% for each
Benefits actuarially adjusted by approximately 5% for each year year they are taken early they are taken early
Benefits actuarially adjusted by a fixed 3% for each year they are taken early subject to a maximum of 3 years

Annual rate of pensionable earnings Member’s contributions rate
Up to £25,999
£26,000 to £34,999
£35,000 to £41,499
£41,500 to £54,999
£55,000 to £74,999
£75,000 and above
7.4%
8.6%
9.6%
10.2%
11.3%
11.7%

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).

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