1. Administering Teachers' Pension Scheme for the United Kingdom
  2. Overview of Additional Pensions

Overview of Additional Pensions

Additional pension contributions allow members of pension schemes to pay extra contributions to build up additional benefits.

This can be by a percentage of salary contribution, a flat amount or a lump sum. The type of contribution is by an agreement between the employer and the employee, subject to their regulations. These are the additional voluntary contributions supported in the application with the associated rules:

  • Additional Pension Contributions
  • AAB buy Out
  • Teachers Additional Voluntary Contributions (TAVC) – see below for further information.
  • Faster Accrual
  • Past Added Years (PAY)
  • Current Added Years*
  • Family Benefit Contributions
  • Former Higher Salary Contributions (TR22 Election)
  • Preston Part-Time Buy-Back Contributions
  • Elected Further Employment (EFE)*

* These do not need to be separately identified for reporting purposes in the MCR. The user can therefore create them using the global element template.

Unlike contributions to the main scheme that are based on rates, these contributions are flat amounts or a percentage of pensionable pay.

Additional Contribution Types Calculation Rules

The additional contribution types are calculated as follows:

  • If calculation unit is flat amount, the amount entered is deducted, taking into account the time basis selected.
  • If calculation unit is percentage deduction, the amount deducted is the percentage entered of the pension scheme member’s eligible compensation (their pensionable earnings) for the period. This is calculated in the same way as for the main pension scheme, subject to the maximum pensionable earnings limit entered on element setup, but no tier band rates apply.

The pensionable earnings for the period comprise:

  • All salary and allowances paid for the performance of the member’s contractual duties.
  • The amount of any payment in respect of Overtime. (Overtime is not pensionable for protected or tapered members who remain in the final salary arrangements.)
  • Any salary or statutory pay paid while the member is on sick leave, maternity leave, paternity leave, additional paternity leave, parental leave or adoption leave.

All additional pension contributions set up for TPS will be limited to the maximum contribution limit entered on element setup.

The rules for payment of contributions during absence are the same that apply to the main pension scheme.

See Absences and Assumed Pensionable Pay for more information on additional pension contributions during periods of absence.