TPS Main changes at a glance TPS pre 2007 TPS 2007 TPS 2015 Scheme Design Final Salary Salary Career Average 1/57 pension increased 1/80 pension 3/80 lump Accrual Rate 1/60 pension whilst in service by sum indexation + 1.6% Pensionable pay Pensionable earnings for used in the Average pensionable Average pensionable each year including calculation of earnings earnings overtime benefits Does not include Does not include Pensionable Pay Includes overtime overtime overtime Normal Pension Age 65 or State Pension 60 65 Age (NPA) age whichever is earlier 3 options additional – Additional pension from pension, faster accrual Flexibilities Additional pension 01.01.07 and buy out of actuarial reductions No lump sum but can No lump sum but can Automatic lump sum = 3 covert part of pension to covert part of pension to Lump Sum x pension receive an optional lump receive an optional lump sum sum Death in service 3 x final average salary 3 x final average salary 3 x final average salary Lump Sum From 01.01.07 the Opportunity to take 3 Opportunity to take 2 Phased opportunity to take 2 phased retirements (only phased retirements retirement phased retirements 2 can be before age 60) before final retirement before final retirement before final retirement Ill Health 2 Tier ill health system 2 Tier ill health system 2 Tier ill health system Provision Payment of Age 55 (with reductions) Age 55 (with reductions) Age 55 (with reductions) Pension Vesting Period 2 years 1 year 2 years Does not affect Does not affect Does not affect Salary Sacrifice pensionable pay pensionable pay pensionable pay TPS Contribution Bands Band Annual Pay Range (Actual Member Contribution pay) 1 £0 - £25,999 7.4% 2 £26,000 - £34,999 8.6% 3 £35,000 - £41,499 9.6% 4 £41,500 - £54,999 10.2% 5 £55,000 - £74,999 11.3% 6 £75,000 and above 11.7% If you have any queries in relation to this please call HR Direct on 01924 305994, or email
TPS Main changes at a glance TPS pre 2007 TPS 2007 TPS 2015 Scheme Design Final Salary Salary Career Average Accrual Rate 1/80 pension 3/80 lump sum 1/60 pension 1/57 pension increased whilst in service by indexation + 1.6% Pensionable pay used in the calculation of benefits Average pensionable earnings Average pensionable earnings Pensionable earnings for each year including overtime Pensionable Pay Does not include overtime Does not include overtime Includes overtime Normal Pension Age (NPA) 60 65 Age 65 or State Pension age whichever is earlier Flexibilities Additional pension from 01.01.07 Additional pension 3 options – additional pension, faster accrual and buy out of actuarial reductions Lump Sum Automatic lump sum = 3 x pension No lump sum but can covert part of pension to receive an optional lump sum No lump sum but can covert part of pension to receive an optional lump sum Death in service Lump Sum 3 x final average salary 3 x final average salary 3 x final average salary Phased retirement From 01.01.07 the opportunity to take 2 phased retirements before final retirement Opportunity to take 2 phased retirements before final retirement Opportunity to take 3 phased retirements (only 2 can be before age 60) before final retirement Ill Health Provision 2 Tier ill health system 2 Tier ill health system 2 Tier ill health system Payment of Pension Age 55 (with reductions) Age 55 (with reductions) Age 55 (with reductions) Vesting Period 2 years 1 year 2 years Salary Sacrifice Does not affect pensionable pay Does not affect pensionable pay Does not affect pensionable pay TPS Contribution Bands Band Annual Pay Range (Actual pay) Member Contribution 1 £0 - £25,999 7.4% 2 £26,000 - £34,999 8.6% 3 £35,000 - £41,499 9.6% 4 £41,500 - £54,999 10.2% 5 £55,000 - £74,999 11.3% 6 £75,000 and above 11.7% If you have any queries in relation to this please call HR Direct on 01924 305994, or email