Another excellent video David. If I were still teaching I would use parts of the RSS letter (as you mention) as an example of how NOT TO produce a questionnaire. For the record, David has helped both me and my wife enormously over the past few years. He is not a financial adviser but his knowledge of the TPS is greater than any financial adviser. If I had relied on the TPS or, worse still, my union, to help explain things, I would have been completely stuck. When I finally get my pension after sending back the RSS, I will be suggesting to the TPS that they hire David as a consultant. Thank you David!
These videos all seem very helpful. But, unless I am missing something, is it correct that (only up to now, perhaps, with some more coming in future?) they only seem to address the situation of those affected by the transitional regulations who are still in teaching and who have not yet retired? Or am I missing a video (and, if so, please draw my attention to it) that might also be addressing the situation of a teacher who was initially in the Final Salary scheme and who then retired from that, receiving a lump sum associated with it, and being in receipt of pension benefits from that scheme; and who then returned to teaching in the Career Average Scheme, but is now also retired from that and received a further lump sum payment from that, and is also in receipt of total regular pension benefits made up of the initial pension benefit plus additional benefits earned in the period when within the Career Average Scheme?
Those who have retired are going to be sent the same choices document - the Remediable Service statement. Those who took decisions based on the position they were put in, illegally as it turns out, and who believe they would have taken a different course of action had they remained in the final salary scheme are permitted to make a "contingent decision" claim against the scheme. There are no details about how these claims are to be made or processed. There should also not be an expectation that a different course of action would have guaranteed a better outcome - some careful calculations are going to be required. For example, a teacher may have decided to take "early" retirement during the remedy period as they knew they would not be adding any more "years" of service to that pension. However they could now claim they would have retired a little later as they SHOULD have been able to add more years, up to 31 March 2022, to that pension. Trouble here is that waiting until later for many will also lead to a reduction in the value of their "final average salary" since salaries have been in decline against inflation since 2010.
Thanks David. Do you know if any teachers who are already taking their pension have received their RSS yet? I know I haven't. I believe they have until April 2025 to sort this? Or will they kick the can further down the road again.
I have not had anyone confirm to me yet that they have had an RSS having retired previously. The LAW says they MUST do it by April 2025, whether they will or not remains to be seen. I have no idea what the repercussions might be if they don't meet that deadline.
Thank you, David. This form looks eye-wateringly complicated and, more to the point, doesn't seem to me to be particularly relevant to someone who has already retired. My wife retired in May 23, at age 59, and has not had any letter about this. I wonder if there will be a separate form for those that have already retired.
The substance of the letter will be the same for those who have already retired, though it may indicate which option was taken at the time. As your wife was 59 in 2023 it may be the case that the two options given won't quite match what she currently has. This is because, I suspect, she was a "tapered" member and was moved to the career average later than April 2015.
Thanks for your videos. I processed question 2 literally as they said, ticking all boxes that applied. So selected All pension benefits I am entitled to, and then picked the benefits. So they rejected my form. So they mean either tick the top box, or tick all that apply. Second TPS form I have completed that has been rejected for doing what they ask. The first form had an issue, as it asked for my last day of teaching. I filled this out correctly, but was told I had to complete the form again, saying not my last day of teaching, but the day mu school left the TPS. It would be so much easier if their forms asked for what they wanted!
Yes, when given options it needs to be clearer - being asked to "tick all that apply" and then being told later that "no, the top one covers all the rest so you shouldn't have ticked the rest as well" is fairly obtuse...and frankly, does it actually matter if you have said you want "All I am entitled to" and then ticked all of the individual boxes for the ones you ARE entitled to.
There are rules against using the tax free lump sum to re-invest in a pension scheme. The TPS warn about this but you would need to get professional advice on not breaking what are called the "recycling rules". There is therefore no official way of swapping the tax-free lump sum for more annual pension.
Sorry if this seems really obvious, if my wife chose Option 2, the lump sum is a negative figure. That seems like one to avoid, but out of interest would this actually be clawed back by TPS?
@@BobCurran-k5b Yes. If you pick an option where you would be paid less then they should reclaim that extra, but there is an exception for those who were moved part of the way through 2015 -2022 if BOTH options provide a lower amount. In that case they can waive the excess already paid. Whilst having a lower lump sum might dissuade you from Option 2 it is still worth considering if the annual pension is higher. Bear in mind that a pension from 2016 that is £1000 higher would now be worth an extra £1300 a year due to the indexation applied to the pension. Also, you should have the opportunity to convert some of the extra pension to a lump sum...so if you have a lump sum that is £6,000 less but a pension that would allow you to convert £1000 and still remain higher, then getting £12,000 for selling that £1000 would make it better value.
@@dfountain My wife is also retired and just got her RSS. Option 2 shows that she needs to repay approx £7,000.00 from the lump sum. If she chooses Option 2 would the amount she'll have to pay back increase because interest would be added. Also would the Tax Office want her to pay additional tax as she shouldn't have had so much tax free? Great advice and help by the way. Many thanks.
Another excellent video David. If I were still teaching I would use parts of the RSS letter (as you mention) as an example of how NOT TO produce a questionnaire. For the record, David has helped both me and my wife enormously over the past few years. He is not a financial adviser but his knowledge of the TPS is greater than any financial adviser. If I had relied on the TPS or, worse still, my union, to help explain things, I would have been completely stuck. When I finally get my pension after sending back the RSS, I will be suggesting to the TPS that they hire David as a consultant. Thank you David!
Thanks David, super interesting and very relevant for me right now, (as are all your videos) 🧐
These videos all seem very helpful. But, unless I am missing something, is it correct that (only up to now, perhaps, with some more coming in future?) they only seem to address the situation of those affected by the transitional regulations who are still in teaching and who have not yet retired? Or am I missing a video (and, if so, please draw my attention to it) that might also be addressing the situation of a teacher who was initially in the Final Salary scheme and who then retired from that, receiving a lump sum associated with it, and being in receipt of pension benefits from that scheme; and who then returned to teaching in the Career Average Scheme, but is now also retired from that and received a further lump sum payment from that, and is also in receipt of total regular pension benefits made up of the initial pension benefit plus additional benefits earned in the period when within the Career Average Scheme?
Those who have retired are going to be sent the same choices document - the Remediable Service statement.
Those who took decisions based on the position they were put in, illegally as it turns out, and who believe they would have taken a different course of action had they remained in the final salary scheme are permitted to make a "contingent decision" claim against the scheme. There are no details about how these claims are to be made or processed. There should also not be an expectation that a different course of action would have guaranteed a better outcome - some careful calculations are going to be required.
For example, a teacher may have decided to take "early" retirement during the remedy period as they knew they would not be adding any more "years" of service to that pension. However they could now claim they would have retired a little later as they SHOULD have been able to add more years, up to 31 March 2022, to that pension. Trouble here is that waiting until later for many will also lead to a reduction in the value of their "final average salary" since salaries have been in decline against inflation since 2010.
Is there any mechanism available by which those of us who have already retired could work out the possible impact of the RSS on our current pensions?
Thanks David. Do you know if any teachers who are already taking their pension have received their RSS yet? I know I haven't. I believe they have until April 2025 to sort this? Or will they kick the can further down the road again.
I have not had anyone confirm to me yet that they have had an RSS having retired previously.
The LAW says they MUST do it by April 2025, whether they will or not remains to be seen. I have no idea what the repercussions might be if they don't meet that deadline.
@@dfountainI retired August 2023 and haven’t had mine yet.
@@alysonmarlor4296 medically retired 3 years. Nothing yet and I could really do with the outcome
Thank you, David. This form looks eye-wateringly complicated and, more to the point, doesn't seem to me to be particularly relevant to someone who has already retired. My wife retired in May 23, at age 59, and has not had any letter about this. I wonder if there will be a separate form for those that have already retired.
The substance of the letter will be the same for those who have already retired, though it may indicate which option was taken at the time. As your wife was 59 in 2023 it may be the case that the two options given won't quite match what she currently has. This is because, I suspect, she was a "tapered" member and was moved to the career average later than April 2015.
@@dfountain Thank you for your reply. Yes, she was 'tapered' and was moved in 2019 I believe.
Thanks for your videos. I processed question 2 literally as they said, ticking all boxes that applied. So selected All pension benefits I am entitled to, and then picked the benefits. So they rejected my form. So they mean either tick the top box, or tick all that apply. Second TPS form I have completed that has been rejected for doing what they ask. The first form had an issue, as it asked for my last day of teaching. I filled this out correctly, but was told I had to complete the form again, saying not my last day of teaching, but the day mu school left the TPS. It would be so much easier if their forms asked for what they wanted!
Yes, when given options it needs to be clearer - being asked to "tick all that apply" and then being told later that "no, the top one covers all the rest so you shouldn't have ticked the rest as well" is fairly obtuse...and frankly, does it actually matter if you have said you want "All I am entitled to" and then ticked all of the individual boxes for the ones you ARE entitled to.
Thanks David. Can the tax free lump sum be used to increase your annual pension? Sorry if i missed this in rhe video.
There are rules against using the tax free lump sum to re-invest in a pension scheme.
The TPS warn about this but you would need to get professional advice on not breaking what are called the "recycling rules".
There is therefore no official way of swapping the tax-free lump sum for more annual pension.
My wife retired in 2022. She has just received her RSS info from TPS. Will have a look today. Will same spreadsheet be applicable to her?
Yes, it should work. If you get stuck just give me a shout.
Sorry if this seems really obvious, if my wife chose Option 2, the lump sum is a negative figure. That seems like one to avoid, but out of interest would this actually be clawed back by TPS?
@@BobCurran-k5b Yes. If you pick an option where you would be paid less then they should reclaim that extra, but there is an exception for those who were moved part of the way through 2015 -2022 if BOTH options provide a lower amount. In that case they can waive the excess already paid.
Whilst having a lower lump sum might dissuade you from Option 2 it is still worth considering if the annual pension is higher. Bear in mind that a pension from 2016 that is £1000 higher would now be worth an extra £1300 a year due to the indexation applied to the pension. Also, you should have the opportunity to convert some of the extra pension to a lump sum...so if you have a lump sum that is £6,000 less but a pension that would allow you to convert £1000 and still remain higher, then getting £12,000 for selling that £1000 would make it better value.
Thank you David. That’s very helpful.
@@dfountain My wife is also retired and just got her RSS. Option 2 shows that she needs to repay approx £7,000.00 from the lump sum. If she chooses Option 2 would the amount she'll have to pay back increase because interest would be added. Also would the Tax Office want her to pay additional tax as she shouldn't have had so much tax free? Great advice and help by the way. Many thanks.
I started by phased retirement back in April but have still not received my RSS.