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Teachers' Pension Scheme (Scotland)

Purchase of additional pension and ceasing monthly contribution elections

Limit on extra pension

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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

There is a maximum overall amount of extra pension a member can purchase. Any extra pension purchased through a buy-out election or faster accrual election will also count against the maximum pension limit.

When a member makes an AP election, a check needs to be carried out to ensure the member has enough headroom within the overall extra pension limit to purchase the desired amount of AP. The amount of pension from this election to count against the overall limit will simply be the amount of AP the member has elected to purchase.

If the member has previously made an AP election, the amount of pension from any earlier AP elections to count against the extra pension limit will be the amount of AP the member has elected to purchase, or the paid-up credit, increased in line with inflation to the date of the new election.