The Recalculation of Teachers’ Pensions following 17/18 Teachers salary awards

For members who were in the Final Salary pension scheme an Average Annual Salary (AAS) was used to calculate your initial pension.

The AAS used is the best of the following 3 scenarios:

  1. The highest amount of full salary for any consecutive 365 days of reckonable service whether continuous or not during the last 3 years of reckonable service.
  2. The average of the best consecutive 3 years salaries in the last 10 calendar years which is then increased using the consumer price index.
  3. The pensionable salary received in the last 12 months before the date of retirement.

When calculating the relevant members’ pension revisions, following the 2017/18 teachers salary pay awards, all past salaries used to calculate the original AAS are subject to inflationary uprating to determine which is now the most beneficial AAS. For the majority of recent retirees their salary prior to 2017/18 is still the most beneficial and therefore their AAS is unaltered, therefore the initial calculation remains unchanged. An individual letter will be sent to anyone whose pension benefits have changed and are entitled to arrears.

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