Experts in Teachers’ Retirement Seminars for over 30 years
0345 644 2585


the reduction in pension (possibly to zero) during a tax year that may happen if a pensioner becomes re-employed after taking pension benefits in full after Normal Retirement Date.
Accrual Rate
in a defined benefit scheme pension benefits build up at a defined rate, known as the accrual rate.
is an independent person who is professionally qualified to give advice as to the financial position of the scheme.
Additional Pension
the facility for scheme members (or their employer on their behalf), to buy additional annual pension.
Admitted Service
Until 1 May 1975, teaching employment in some independent schools was under the 1926 and 1963 statutory pension schemes for independent schools. This is called ‘Admitted Service’ and benefits are calculated separately from other service.
income from a capital investment paid in a series of regular payments.
Age Retirement
retirement on or after the scheme’s Normal Pension Age (NPA) of 60 or 65.
Actuarially Reduced Benefits (ARB)
retirement benefits paid from age 55 and before the NPA of 60 (existing scheme member) or 65 (new entrant) reduced by a factor related to the scheme member’s age on the date the pension commences.
Additional Voluntary Contributions (AVC)
voluntary contributions that scheme members may pay to an AVC provider to provide additional pension benefits in retirement. There are two types of AVCs: inhouse or free-standing. The TPS in-house AVC provider is Prudential. Free-standing AVCs are paid to
Average Salary
the salary used for calculating retirement benefits and Death Grant.
Civil Partner
a person who has entered into a civil partnership with his or her same-sex partner.
Commutation (Conversion)
immediate payment of a single sum to extinguish pension entitlement, either because the scheme member’s pension is of a trivial value, or because the scheme member has a life expectancy of less than 12 months.
Conversion of Pension to Retirement Lump Sum
the option to give up £1 of pension in return for £12 of (tax-free) retirement lump sum up to a maximum of 25% of the overall pension value.
Contracting Out
members of the TPS are contracted out of the State Second Pension Scheme (S2P).
Contributory Salary
the salary on which contributions are paid.
Contributions Equivalent Premium (CEP)
a payment to the National Insurance Contributions Office (NICO) to reinstate the scheme member into the State Second Pension (S2P) when contributions are repaid or a transfer value is paid to another scheme unable or unwilling to accept the S2P liability.
Contributory Scheme
this is a pension scheme where both the employer and the scheme member have to pay contributions.
Death Grant
lump sum payment of three times average salary paid when a scheme member dies while in pensionable employment.
Defined Benefit Scheme
an occupational pension scheme that provides a range of retirement benefits based on pensionable service and salary.
Deferred Scheme Member
a scheme member who has left pensionable employment before NPA having completed the qualifying period necessary for payment of retirement benefits and whose benefits remain to his or her credit in the scheme.
a process by which some of the pension benefits due to a member are paid to the ex-spouse, as directed by a Court at the time of the divorce, but only paid when the member retires.
Early Leaver
a deferred scheme member who, because he or she left pensionable employment on or after 1 January 1986 having completed the qualifying period for payment of retirement benefits, has special rights to a transfer value under the Pensions Schemes Act 1993
Earnings Cap
a limit applied to the contributory salary of certain scheme members who are high earners.
Elected Further Employment
this is teaching employment after a member has claimed retirement benefits from the TPS and for which he/she has specifically signed an election on or after 1 April 2000 for it to be pensionable. These elections were discontinued from 1 January 2007.
Equivalent Pension Benefit (EPB)
a term used to describe pension entitlement earned under the State Graduated Pension Scheme and for some scheme members, the liability will be met by the TPS.
Excluded Employment
this is teaching employment which would have been pensionable but for an election to opt-out of the scheme or the absence of a part-time election prior to 1 January 2007.
Existing Scheme Member Service
reckonable service that carries an NPA of 60. This includes post 31 December 2006 reckonable service and reckonable service accrued on or before 31 December 2006, by a person who has not had a relevant break in service.
Family Benefits (Survivor Benefits)
pension payable to surviving children of the scheme member and either: surviving widow / widower, civil partner, financially dependent unmarried partner or financially dependent same-sex partner where the relationship is not a registered civil partnership
Final Average Salary
This is the salary used in the calculation of benefits at retirement.
Free Standing Additional Voluntary Contributions
See Additional Voluntary Contributions.
Gainful Employment
any employment which demonstrates that a person’s ability to carry out any work is no longer impaired by at least 90%.
Guaranteed Minimum Pension (GMP)
the minimum pension which schemes must provide as a condition of being contracted out of SERPS for any period from 6 April 1978 to 5 April 1997. Roughly equal to the additional pension you would have earned if you had not been contracted-out of SERPS.
Her Majesty’s Revenue and Customs. Previously known as the Inland Revenue.
In-House AVCs
see Additional Voluntary Contributions.
Internal Dispute Resolution Procedure (IDRP)
the formal process through which scheme members or their beneficiaries have the right to appeal against any decision made by the administrators or managers of the scheme.
Ill-Health Retirement Benefits (IHRB)
benefits (which may be enhanced) awarded before 1 January 2007 on grounds of incapacity.
Lifetime Allowance (LTA)
is the amount set by HMRC on total pension saving payable from a scheme before an additional tax becomes payable. This is set at £1.25m in tax year 2015/16 and reducing to £1m in tax year 2016/17.
Minimum Pension Age (MPA)
the earliest age at which retirement benefits (excluding ill-health retirement benefits) can be paid from the TPS (age 55 for new entrants, age 55 from 2010 for existing members).
Multiple Employment
concurrent part-time pensionable employment with more than one TPS employer.
Nominated Beneficiary
an adult relative of an unmarried scheme member who has been nominated to receive a survivor pension on the death of the scheme member. This only applies to certain relatives and payment of the pension is subject to a financial dependency test.
Normal Pension Age (NPA)
the earliest age (age 60 for existing scheme member rights or age 65 for new entrant rights) at which a scheme member can take their unreduced retirement benefits.
Opting Out
the facility for a person to formally opt out of pensionable employment.
Partial Incapacity Benefit (PIB)
(post 31 December 2006) immediate payment of unreduced retirement benefits awarded on grounds of permanent incapacity for teaching, but capable of other gainful employment (See also Total Incapacity Benefit).
Pension Credit Member
former spouse or former registered civil partner who is credited with pension rights in the scheme by virtue of a Pension Sharing Order.
Pensionable Employment
a period of full-time or part-time employment during which teachers’ pensions contributions were, or are being, paid.
Pension Guarantee
the guarantee to pay the balance of five years’ pension if a pensioner dies within five years of retirement.
Pensions Increase
annual increase applied to deferred scheme benefits and pensions in payment.
Pension Sharing
where the scheme member’s marriage ends in divorce or registered civil partnership is dissolved and a Pension Sharing Order provides the former spouse or civil partner with a share of the scheme member’s pension.
Phased Retirement
the opportunity for members to drawdown part of their pension benefits whilst reducing their earnings by at least 25% for a minimum of one year.
Qualifying Period
the period (usually two years) a scheme member must complete in order to qualify for the award of retirement benefits.
Qualifying Service
service that counts towards the qualifying period that a scheme member needs to complete to be entitled to retirement benefits.
Reckonable Service
Service which counts for benefits. This can include service from pensionable employment, any additional service previously purchased and any service credited into the TPS from another pension scheme.
payment back to the scheme of contributions (plus interest) withdrawn from the TPS before 1 June 1973.
employment following retirement.
Relevant Break in Service
a period when a person was not in pensionable employment for a period of five years or more.
Retirement Age
the age at which a person retires from their employment.
Retirement Benefits
Pension and (tax-free) lump sum payable subject to completion of a qualifying period and other conditions depending on the type of retirement.
Scheme Administrator
the person or body responsible for the day-to-day management of the scheme, including the maintenance of members’ records, calculation and payment of benefits and the collection of contributions.
Short Service Incapacity Grant
a one-off payment made to scheme members who become incapacitated but who have not completed the qualifying period for payment of retirement benefits.
State Earnings Related Pension Scheme (SERPS)
SERPS was also known as the additional State Pension. It ran from 6 April 1978 to 5 April 2002 when it was replaced by the State Second Pension.
State Second Pension (S2P)
the second tier of the state pension arrangements from 6 April 2002.
Surviving Partner Benefits
pension payable on the death of a scheme member to the surviving widow, widower, civil partner, financially dependent unmarried partner or financially dependent same-sex partner where the relationship is not a registered civil partnership
Total Incapacity Benefit (TIB)
(post 31 December 2006) additional ill-health retirement benefits awarded to scheme members permanently incapacitated for teaching and not capable of gainful employment.
The Pensions Advisory Service (formally OPAS). An independent voluntary organisation that provides information and guidance to members of the public, covering State, company, personal and stakeholder schemes.
the acceptance of a transfer value from another pension scheme that is used to purchase reckonable service in the TPS.
payment of a transfer value to another pension scheme that extinguishes pension rights in the TPS.
Transfer Value
the actuarial value of a scheme member’s accrued benefits in the TPS payable to another pension scheme able and willing to accept the transfer value.
Unlimited Aggregation
separate periods of pensionable employment that aggregate towards the same NPA and pension is calculated on the total.
Unmarried Partner
a survivor pension may be paid if certain conditions are met and, if the surviving partner is able to demonstrate financial dependency or financial interdependency and where the relationship has been previously notified to TP by the scheme member
Unregistered Civil Partner
a survivor pension may be paid if certain conditions are met and, if the surviving partner is able to demonstrate financial dependency or financial interdependency, and where the relationship has been previously notified to TP by the scheme member


We would love to help you live the retirement you deserve. Simply click below to view our current seminars.


An excellent day. I came thinking retirement was just a word I say on a regular basis... the biggest thing for me is I now feel more optimistic.”
Lynne Saint, Head Teacher, Blyton cum Laughton C of E Primary School