Teachers' Pension Scheme - PIAs
benjaminfabi
Moderator
Hi,
A member has active CARE and legacy 80ths in TPS.
When I've had the 2023/24 PIA statement, the CPI uplift to the 80ths section creates a negative input amount.
Rather than take this as zero, the scheme has taken the negative value away from the CARE PIA.
80ths is say -£6k
CARE is say +£13k
TPS is telling me that the PIA is +£7k.
First time I've seen this, and I've known this scheme to get things wrong. Is this the correct way to treat the 80ths PIA?
Benjamin Fabi
Comments
So I can't say that my knowledge of the teacher's pension scheme is huge, but I believe there was a change to all public sector pension schemes in the Spring budget 2023 (actual legislation is here fyi: https://www.legislation.gov.uk/uksi/2024/357/made ) which meant that public sector pension schemes could now offset negative pension input against positive pension input in their pension schemes in the same tax year. NHS pensions has quite a good explainer of it in the attached document.
So I would say that the PIA is probably correct in this.
Nice, thank you. Hadn't noticed that slip into the rules.
Morning
resurrecting this post...I have a client who works part-time and has accrual in the Teachers Pension Career Average scheme which has a 1/57th rate (and the older 80ths DB scheme)....
I am using the M&G DB PIA calculator and the duration of service (reckonable days) provided by the scheme accounts for his part-time hours, but I am getting a unexpectedly high PIA:
291 days accrued service (career average section only) with Gross Salary (non- prorated) fairly static over the last few tax years of £66.8k, amounts to a PIA of around £17.7k
Something doesn't feel right - am I missing something?
I don't think the tool will deal with that scenario - want to send me a screen print?