This note is provided for the Department for Education (DfE) as Scheme Manager of the Teachers' Pension Scheme (TPS) and sets out how to determine the appropriate uplift to be applied to a member's benefits in the career average section when retiring from active service after normal pension age (NPA).
This guidance does not apply to the final salary section and separate guidance has been provided for that section.
A member may have benefits in both the final salary section and the career average section. For the purposes of calculating a member's late retirement pension, the member's final salary late retirement pension and career average section late retirement pension should be calculated separately using the relevant parts of this guidance and the separate guidance covering late retirement in the final salary section.
The following changes have been made when reviewing this guidance:
- Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
- Calculation methodology: No changes have been made to the calculation methodology.
- Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
- Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
- Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
- Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.
