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Created: 02 December 2015 | Last Updated: 02 December 2015 | Printer Friendly Version Printer Friendly Version | Make Text Smaller Make Text Larger |

Summary of Changes

The main Scheme changes that will affect you are: 

Retirement Age

From 1 April 2015 the scheme is required in law to set the retirement age in accordance with the State Pension Age (SPA). This is subject to full "transitional” or "tapered” protection. 

Currently, schemes can set the retirement date at which pensions can be accessed without any actuarial reduction. Those in the STSS have a Normal Pension Age (NPA) of 60 (Pre April 2007 members) or 65 (Post April 2007 members).  

From 1 April 2015 the scheme is required in law to set the retirement age in accordance with the State Pension Age (SPA).  This is subject to full "transitional” or "tapered” protection.

 

Accrual Rate

The accrual rate is the rate by which pension grows annually.  

In the STSS those with NPA60 had an accrual rate of 1/80 but received an automatic lump sum of 3/80 on retirement.  

Those who were NPA65 had an accrual rate of 1/60 but were able to commute annual pension into a lump sum (£1 of pension for £12 lump sum tax free) subject to commuting a maximum of 25% of their pension pot.  

The STPS 2015 has an accrual rate of 1/57 but there is provision in the new scheme for a faster accrual rate (1/45, 1/50, 1/55). The commutation arrangements remain the same as the STSS NPA65 arrangements.

Career Average

In the STSS, pensions are based on final year’s salary or the average of the best three consecutive years in the last ten years.  Those who join the STPS 2015 will have future pension based on a Career Average Revalued Earnings (CARE) basis.  

For each year worked 1/57 of earnings will be placed in a pension pot and the pot will increase annually in line with the Consumer Price Index (CPI) plus 1.6%.


Scheme Governance

From 1 April 2015 Scottish Government will have to put in place a Pension Scheme Board to oversee the operation of the scheme.  

The Scottish Teachers’ Pensions Scheme Board is proposed to have 6 employer representatives and 6 representatives nominated by the trade unions.  

In addition, there will be a Scottish Teachers’ Pension Scheme Advisory Board with trade union representation, to advise the Board Chair on future Scheme design.  

Local Government Pension Scheme 2015

From 1 April 2015 members of the Local Government Pension Scheme will also move to the new Local Government Pension Scheme 2015 (LGPS 2015).



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