A member may elect to make a faster accrual election to accrue pension at a rate of 1/45, 1/50 or 1/55 in any financial year, compared with the standard accrual rate of 1/57.

This note sets out the factors to be used to determine the monthly contributions payable by a member who has made a faster accrual election, in line with Teachers' Pension Scheme Regulations 2014.

Factors for calculating the cost of the faster accrual election should be selected with reference to:

• The chosen rate of faster accrual (i.e. 1/45, 1/50 or 1/55).
• The member's age (last birthday) at the date the faster accrual election takes effect.
• Whether a member has made a buy-out election. If a member has made a buy-out election and this election has not been revoked or been taken to be revoked, additional contributions are required on top of the standard faster accrual contribution rates. Further information is provided in the sub section Interaction with buy-out elections.

Factors for faster accrual elections, shown in Factor Tables, are as follows:

• Table FA45 (Table 724 in Consolidated Factors Workbook) - contribution factors for a faster accrual rate of 1/45.
• Table FA50 (Table 725 in Consolidated Factors Workbook) - contribution factors for a faster accrual rate of 1/50.
• Table FA55 (Table 726 in Consolidated Factors Workbook) - contribution factors for a faster accrual rate of 1/55.

Example calculations showing how the factors should be used are set out in Examples.

If a member has made a buy-out election and this election has not been revoked, or not been taken to be revoked, at the time of making a faster accrual election, then the buy-out election will also apply to the extra pension a member purchases through a faster accrual election. The same early retirement reduction will therefore apply to the extra pension purchased through the faster accrual election as applies to their main scheme benefits which are subject to the buy-out election.

The faster accrual contributions therefore need to be increased with reference to the number of years in respect of which the standard reduction is to be bought out under the member's buy-out election.

The total faster accrual contribution factor should be calculated using the formula below:

Total faster accrual contribution factor = FA + (N x BO)

where:

• FA is the standard faster accrual factor relating to the chosen accrual rate and the member's age (which can be found in either table 724, 725 or 726 in the Consolidated Factors Workbook)
• N is the number of years bought out under the buy-out election
• BO is the additional contribution factor for each year being bought out, relating to the chosen accrual rate and the member's age

Example calculations for members who have an in-force buy-out election are set out in Examples.