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Teachers' Pension Scheme (Northern Ireland)

Purchase of AP and ceasing monthly contribution elections

Methodology for determining cost of AP

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Introduction Scope of Tables Methodology for determining cost of AP Methodology for paid-up AP credit calculations Methodology for calculating outstanding lump sum amount Limit on extra pension

AP can be purchased either by a lump sum payment or regular monthly contributions.

The following approach should be used to determine the cost of purchasing AP:

Cost = (AP / £250) x R

Where:

AP is the amount of AP to be purchased at member's date of election

R is the factor representing the cost of purchasing £250 of AP at age last birthday at date of election.

Factors in tables S65, S66, S67 and S68 are to be used for determining the costs for a one-off lump sum payment to purchase additional pension. If the original election date is after 22 June 2010 and the member originally purchased additional pension subject to NPA60 through a monthly contribution then please refer to GAD.

Factors in tables C60 to C68 (or C60D to C68D) and factors in tables R60 and R65 or R60D and R65D should be used to determine the regular monthly contributions that should be paid to purchase AP.

These factors should be selected with reference to:

the member's age last birthday at election date
the member's normal pension age (NPA) at the election date
chosen form of payment (either lump sum or regular contribution)
chosen form of benefit (either member only or member with dependant)
for regular contributions, the date of the election (on or before 22 June 2010,or after 22 June 2010).

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