Pension - Don't Throw £'000s Away

[@sydneyleigh3108]

Brilliant video. They all are! Thank you. Just a note here for others if I may. I retired last July (😁). I had a break in service in 2015 of half a term. I returned to teaching at a lower salary. I knew about the break in service but still I rang tps to make sure they were aware of it. They assured me that when the time came my service would be carefully scrutinised. Despite this when I came to take my pension they FORGOT to do the hypothetical calculation and awarded my pension without it. I knew it was wrong so I had to contact them and ask them to recalculate. Consequently my pension increased and they had to give me additional lump s um. Just be aware and check you pension statements very carefully when you get them. I asked for all the detailed info and all the calculations so I could check them. I will do the same when they get to me re the court case choices! Retirement is wonderful. Thank you.

[@dfountain]

Wow, I thought that the hypothetical calculations were very much a standard part of the process and I am shocked to hear they didn't do them automatically! Perhaps you could get in touch with your union and ask them to investigate whether this is a systemic failure or an unfortunate one-off.

[@sydneyleigh3108]

I know and that wasn't all! They also forgot to add on the CA part of my pension! I had to get that corrected too! They are supposed to automatically look for and do a hypothetical calculation and many times I was told that would happen. For me it didn't. I had even rung them at the time of my break to check and they said they'd put a note on My file about it. My pension advisor chappy told me to check it when it came because he had no faith in them at all. Neither do I now. I will be checking the McCloud calculations very carefully I can tell you! Good job I'm good at maths! Your videos are ace and I am sending them to my ex colleagues who are still at the chalk face. 😊

[@lisamagowan2054]

I was going to ask David, if this is all done automatically, thanks to your post, I now know I need to make sure that they look at my break in service and do the hypothetical calculation. Thank you so much David for sharing this excellent tip!

[@MathewCymru]

Hi David. I have taken the one month break during January (taking out insurance to cover the death grant). I am contributing again and this shows on my February payslip. I’ve just checked my latest statement and noticed that the deemed date has been updated. This is now showing method B as being about £3,500 more than method A. If I have calculated correctly I think I am likely to receive over £1200 per year more pension using method B. I was about to lose access to my best 3 years. Thank you so much for your videos!

[@dfountain]

Yes, that they do not keep the Method B up-to-date once they "know" the inflation rate - published in OCTOBER(!) - is a great disservice to all.

[@tonygarvey8294]

I’ve loved watching all of these videos and feel like I know a little more about pensions as a result. I found this particular video about taking a month out the most confusing and yet seems to have big benefits if followed correctly. I’ve read the comments on here and everyone seems to be quite clued up on this now. If I’m reading these correctly, I don’t think I need to take another month out from the pension scheme as I took one between June 2011 and September 2011 and this is shown on my employment history. I began teaching in 1998 and as a 45 year old, I’ve still got another 15 years until retirement. My best three years are showing up on method B as being 2014-2017. I’m a supply teacher working for the LEA so I presume it would be pretty easy to take a career break for the one month I don’t get paid each year anyway

[@dfountain]

It can be hard, nay impossible, to know for certain when and whether a break from the TPS for a month is going to be worthwhile which is why I talk about it in terms of placing a bet. Before doing that you need to know lots of information and one of the key parts I think you are missing. What was your 'final salary' figure when you took the break in June 2011? This is the important question because your current 'best' years are 2014-2017 and they will continue to be 'good' until 2024 at which point they will start to slide out of the last 10 years. If they are better than your 2011 (revalued) figure then you may want to consider a month out after April 2022 and before 2024 in order to fix them with respect of your Final Salary pension. If they are worse then the only thing you need to be careful about is making sure that when you finish teaching you do so on a higher salary than that figure. (Probably very easy considering you will have had around 25 years of inflation since then). To help compare older salaries I made a spreadsheet that converts historical salaries to their 2021 equivalent. Now, it may not be totally accurate as your method B in 2011 will actually have used all of your salaries from 2001-2011, but it should be able to give you an idea of whether it exceeds that currently shown as your method B figure for 2014-2017: docs.google.com/spreadsheets/d/1zkjICn_-_Gzhi52oT7V33wuyJeU8485ZUgIgHcxCG_o/edit?usp=sharing

[@tonygarvey8294]

Thank you so much for taking the time to give me such a thorough response- it’s only the last couple of months I’ve started paying attention to my pension. My 2014-17 method B calculation is stating £42484 but when I look at my last ten years it mentions the 2011 salary as being £36789 revalued with 20.66% increase to £44389. Not sure if I’m reading it all correctly and whether this amount is safe. I’m LEA supply at rate of £41600 at the moment

[@dfountain]

Yes, that means your Final Salary pension is safe...and will actually be higher than is being shown on your benefit statement because TPS do not DO the hypothetical calculation until you apply for retirement. I would imagine the Final Salary part of your pension should be in the region of 4-5% higher than is shown. The key figure will be that £36,789 one (or thereabouts)...to get the best calculation you must, when you finish teaching, aim to be on a salary that is higher than that. If you do then you get what is called the 'unrestricted' hypothetical calculation and it will use ALL of your service, including the years AFTER 2011. I would suggest that only if, at some point in the future, you achieve a post that pays more than £45k (in today's money value) will you have to even consider taking a month out of the scheme.

[@tonygarvey8294]

That is amazing news. Thank you so much for this! Just saying to my wife and daughter that it is so nice of you to do this for people as so many teachers won’t be aware of this! Much appreciated!!

[@robtudor3785]

David, Thank you. A most informative video.

[@dfountain]

Very welcome

[@Rachel2305]

Thanks for that. Certainly food for thought!

[@dfountain]

Glad it was helpful!

[@unreachablerich]

Hi David - thanks for the information. Are there any other penalties to taking a short break? On the opt-out form from the TPS it states the following: By opting out of the Teachers’ Pension Scheme I will forfeit the right to the following scheme benefits in respect of future service: • my employer contributing towards the cost of my benefits (currently this is 23.6% of your pensionable earnings) • a guaranteed pension at normal pension age • the option to take a tax free lump sum • pension value protected through full index linking • access to ill-health benefits, should I become permanently unable to teach • children’s and dependants’ pensions • in-service death grant. My question is, are all of these above points only applicable for the month that you take a break, or are any of them permanent changes (penalties) due to a break in service?

[@dfountain]

Yes, that message is designed to persuade you to stay in the scheme but it is really aimed at those thinking of opting out permanently and not for the reasons I refer to. I go through these points here: dfountain.co.uk/opting-out-warning-tps/ The only ones that relate to those taking a short-term break are the last ones that go over the death benefits.

[@SuperSpicemaster]

Hi David, just watched your videos and they’re great! Thanks for taking the time to do this. Looking at this specific video, I have some years in final salary and am now wondering if I should ask to opt out for a month. I’d love to learn more if you have the time?

[@hounddogjonny]

David you should have 1000s more subscribers these videos are fantastic

[@dfountain]

Kind of you to say, this is a very niche target audience though and it takes time to pass the word :)

[@DrSarahSephton]

Thank you very much for your video - I now realise that my pension would be a restricted calc as I used to have a leadership position then had a break of less than five years and now returned as a part time teacher. I have also been told that ‘my good years are going to drop off’ as they are now ten years ago. Do you have a video on the restricted calc? Many thanks for your time.

[@DrSarahSephton]

Thank you again for your very helpful videos, I’ve now watched nearly all of them 😊 In terms of the one month break, how does that affect the highest three year salary in ten years? My highest salary (inflation included) was between 2013 - 2016, then in 2016 I had a four year break, I am now back in the tps but in April 2023 the years will start to drop off. Thank you so much for your time.

[@dfountain]

Not on its own I'm afraid. This is the only video that covers it. If you would like a hand going through the figures please do get in touch via my blog, dfountain.co.uk

[@dfountain]

When you left in 2016 the hypothetical calculation will, forever, use the salaries from 2006 to 2016. The "final salary" generated at that point in time is then used in conjunction with the "final salary" that you do eventually finish on to determine if you get the restricted or unrestricted hypothetical calculation. I generally refer to this salary at the time of the break as the "target" figure. It never gets increased by inflation and to get the better, unrestricted, hypothetical calculation your eventual ending final salary needs to exceed this target. Now, if you were to take a break then there is no longer any need to worry about whether you will get the restricted or unrestricted version because the difference in these is only relevant for breaks taken before April 2022. This is because the advantage the unrestricted version has is that it adds any final salary service from AFTER the break to the final salary pension calculation. The ability to add "service" to the final salary scheme ended on 31 March 2022 and so the two calculations will be identical for any breaks taken after that date.

[@DrSarahSephton]

@@dfountain Thank you David - your help is very much appreciated. Please may I check my understanding of your point? When I left in 2016, this break then froze that time period 2006 - 2016 so years are not actually dropping off (highest three years is actually 2013-2016). I thought that as we are now in 2023 that the 2013 year will soon drop off the ten year time period. I rejoined in 2020, so the new ten year period starts then. The TPS is so complicated to understand. All the best.

[@dfountain]

So long as you have not had a break of more than 5 years your final salary, right now, will start to see the 2013 year "drop off" as each month goes by and gets older than 10 years. The statement provided by the TPS only uses the most recent 10 years and ignores the fact that you had a break in 2016. When you come to claim your pension they will do the calculation to the break using 2006-2016 AND whatever are your most recent 10 years at that time. The pensions created are then compared and you will get whichever gives you the best result. The one "tricky" part is that the calculation to 2016 CAN use the years of service you completed AFTER 2016 in that calculation so long as your final salary when you finally leave is more than it was in 2016.

[@Mrpegs1]

Hi David I had a hypothetical teachers pension that had, pension increase, in the calculations. My question if you have a normal calculation does this too have pension increase? Thanks..

[@dfountain]

It may, it depends on when you finish teaching and when you take the pension. This is because the 'normal' calculation is worked out to the day you finish teaching and is then increased from that date to the day you take it by inflation (the pension increase figure). If you take the pension at the same time as you stop teaching then there will be no increase because there has not been any inflation yet. Hypothetical calculations will always get this increase because, by their nature, they are worked out to a date in the past. Once your pension is worked out it will then be increased each year in line with inflation.

[@Canonballbouche]

Fantastic video and very informative. Can you please point me in the direction of where you got the inflation data? Also, is it possible to look at teachers who work part time please. My wife went from full time to part time in Sept 2012 and I'm wondering if a pause in the teacher pension will look at her full time salary in 2012. Finally, I called TA, who were not helpful. You have helped tremendously. Thanks. Freddie

[@dfountain]

The Government publish the figures used to increase the public sector pensions each year, this page has the figures for April this year (2022): www.gov.uk/government/publications/public-service-pensions-increase-2022 Part-time work doesn't stop the 10-year clock - so it will currently (today being 29 March) go back to 1 April 2012. However, it isn't going part-time that may be her problem but simply that her salary back in 2012 once inflation is added will be better anyway. She needn't be too worried about the her salary being lower because she is part-time though because, for the pension calculation, her "final salary" is worked out using the full-time-equivalent salary anyway. Being part-time you get a reduced pension but that is taken care of by altering the number of years to reflect the part-time rate. For example, if a teacher works full time from 2012-2022 then they are credited with 10 years. If a teachers works those same years, 2012-2022, but on a 0.6 contract then they get credited with 6 years. A teacher on the top of the pay scale, U3, that is £41,604 will always have their pensionable salary treated as £41,604 no matter if they are full-time or part-time.

[@RobAstley-nb4uv]

Hi David, just watched this video and it made me curious. I am now retired so sadly, have missed the boat. My wife is currently teaching and am wondering if she could benefit from opting out or not. She is 50 and the plan is for her to retire at 60. She may or may not reduce her salary at some point by dropping off the leadership scale. According to her benefit statement using method A her average salary is £56,895.56 using dates 01.09.23 - 31.08.24. Using Method B, her average salary is £58,422.55 using dates 01.11.19 - 31.10.22 and revaluing her salary to 08.04.24. Thank you in advance for any insight.

[@dfountain]

That Method B is safe until November 2029, so there is no need to rush to do anything. Today we found that inflation is 1.7% for the period after April 2024 and so, by April 2025, her Method B will be revalued to £59,415.73 (we won't know what increase will apply AFTER April 2025 until next October) Her current salary, if she gets this year's 5.5% increase, will be in the region of £60,024 by next August. There is very little difference between these and as such I would suggest there is no need to look again at this until next summer when you will have a better idea of whether another above inflation pay rise is likely or not, and what the inflation is likely to be a few months later.

[@RobAstley-nb4uv]

Thank you for such a speedy reply. We'll see what happens next year.

[@robertpayne7720]

Hi David, I'm trying to figure out whether I should take a one month break and what the optimum timing is. In this video you say something along the lines "that after taking a break there is a need to do a pension calculation in 2010 using the final salary at that point, again it's either the final year or the average of the best consecutive 3 of the last 10". When I look at the hypothetical example on the TP site, they don't mention that it's either the final year or the average, it just shows it's the average of the best 3 years. My issue is as follows: I have 27.6 full years in the final salary scheme. I went up a salary point 22 months ago, August 2020. My benefit statement shows that my final salary is method A , not B. I think I will move to method B after the next academic year finishes, when I will have completed 3 years at the higher salary. Given inflation is accelerating however I think I should actually take a break asap, if when doing the hypothetical they take the final year and not the best 3 year average. In a nutshell I am concerned that if I take a break then method B will be applied (not A) in the hypothetical and I will lose out. Alternatively if I do nothing and retire in the summer of 2023 without taking a break, then I will definitely get a salary B and inflation added to 2 of those years. Does that make any sense to you?

[@dfountain]

Yes, absolutely I understand what you are saying and it's only by going to the regulations that you can see that what they call the "average salary" is defined as the best of Method A and Method B. Confusing since only one of those actually does any averaging in working out its value. The definition is in regulation 37 of the final salary NPA60 regulations: www.legislation.gov.uk/uksi/2010/990/made/data.pdf QUOTE "(2) The average salary of a person (P) to whom this regulation applies is the greater of- (a) P’s relevant salary during the last 365 days of P’s average salary service, and (b) the average annual rate of P’s relevant salary during P’s best salary period multiplied by A/B." END QUOTE These are what are referred to on the TPS site and statement as Method A and B. The 'best salary period' in the latter part is defined later in part (6): QUOTE "(6) Except as provided in paragraphs (7) and (8), P’s best salary period is the 1,095 consecutive days of P’s average salary service falling within the period of 10 years ending on the last day of P’s average salary service (the “10-year period”) during which P’s increased relevant salary is the greatest. " END QUOTE I think that is clear that they have to apply both methods A and B to the hypothetical calculation. The underlying reason behind this rule is to protect the pensions of those who leave and return and it would make no sense to change how they would work out the pension at the break when the whole point is to make a fair comparison between the pension at the break and the one at the end of service.

[@timt637]

Really helpful video, I've watched and listened to it 3 or 4 times to get a better understanding. I've been on the UPS for the past 10 years, and had no movement on salary over that time (no change to my pay grade), besides from the freeze periods and the small overall increases that all teachers have been awarded. I'm trying to work out with the best 3 consecutive years in the past 10, will these be locked in to be calculated backwards from 2022 when the Mccloud judgement finalizes the final salary scheme (I was moved over to career average in 2015 but I'm aware now that I can be moved back over for those years into the final salary through to 2022)? My NPA for the final salary scheme is in 8 years in 2030 - so my big question is, do the best 3 consecutive years still get calculated in the 10 years 2012-2022 - is that locked? Or does that best 3 in 10 keep moving forward, as my NPA 60 to take my final salary pension is in 2030. Just that I'm looking at the hypothetical calculation, as I believe if I'm understanding right, if I were to opt out now for 1 month and rejoin, that this locks in the best 3 consecutive years in the past 10 years from now, regardless that I keep working until 2030? Hope I've not confused matters too much! :)

[@dfountain]

The first step is to see what years are currently being used to calculate your best final salary. You can see this on your benefit statement on teacherspensions. Most likely it will be Method B and probably 2011-2014...if that is the case then you need to look forward to see what happens to it in the months between now and April 2022. I have made a spreadsheet to help with this, feel free to make a copy for your own use: docs.google.com/spreadsheets/d/1Prxp4yNdoNIQ6Cr81pD1NN-m581CIsmMB2RowNyQ0Ks/edit?usp=sharing If you have not had a break in service then you can force one by taking a month out of the TPS but you will need to work out if it makes more sense to do that now, or to wait until March/April 2022. If you continue without a break in service then your best 3-in-10 will use the years from 2020-2030. There is no 'break' created when you are moved from the Final Salary to Career Average schemes in April 2022 (just as there was not break when we were moved back in 2015).

[@timt637]

​@@dfountain Thanks David. Unfortunately I've never taken a break in the past 15 years, I've had my head down and turning the wheel, such is school life. Have printed off a statement after reading your reply. I have gone over it and can see as you thought, it is indeed Method B not restricted. You're right with the 3 years, they have used 1/1/2011 to 31/12/2013. You could give Nostradamus a run for his money! I can see on the statement that prior to 2011, it also shows the 2010 year and in this year my revalued salary was some £3000+ more than 2011 even though my actual real salary back then only went up £33 from 2010 to 2011 - that's a big difference! The 2010 revalued is £5000 more than my salary now in 2021, even though I have not changed my salary grade over all this time - must be inflation working away .... .I also notice that the £5000 difference in the fall in my revalued actually occurs between 2010 year and the 2012 year. Of all the years between 2013 and to now, all the revalued salaries are actually pretty much at my current salary and there are about 4 of those years (2017-19) that happen to at revalued rate some £2000 less than my current salary in 2021. Again, my pay grade has never changed over the past 12 years. If i'm getting this right, if I were to opt out for a month from TPS forcing a break in service, this would mean that the best 3 in 10 (2011-2014) will get locked in as the years TP use to calculate my NPA final salary at 60 in 2030, with those 3 years getting continually revalued according to inflation increases though to 2030 when I take the pension? Otherwise if I don't take a forced break and were to keep working on the grade I'm on through to 60 in 2030 (hmmm, will I make it that far? :) ) TP would use the best 3 in 10 that are between 2020-2030? I'm looking at the current economic climate and teachers salaries, and seeing in my view, pay will be frozen or only get small increases that won't keep up with inflation over the next years through to 2030. In that sense, if I'm getting this right, taking the break now would lead to my current final salary best years TPS is using(2011-2014) being locked in and used for my final salary pension and when I take it in 2030 when I'm 60? And that would mean those 2011-2014 years would form the TP calculation with that rate being revalued at 2030 and thereafter when I'm taking my pension, taking into revaluing back to 2011-2014 taking into account inflation increases ever since then?

[@dfountain]

The tricky part of falling final salary calculations is taking account of the countering effect of adding in more service. A lower FS but with more service can produce a better pension...however, you will only be able to add more service up to April 2022, so I would suggest the following calculations should be checked. 1) Final Salary Now x Service Now 2) Final Salary @ March 2022 x Service @ March 2022 Then there is the 'gamble'. If you opt out now, then you 'may' get the service between now and March 2022 included IF your final salary when you finish in 2030 is higher...7 years time to make up the difference between what is your FS now and what you actually finish on. You may decide that there is no way your real salary will overtake the current FS so would then need to consider whether opting out semi-permanently between now and March 2022 would be better than waiting to opt out in March/April 2022. Or, wait until you can add no more service and take a month out - either March 2022 or April 2022. I have made a spreadsheet that will project what your 'final salary' will be over the next year: docs.google.com/spreadsheets/d/1Prxp4yNdoNIQ6Cr81pD1NN-m581CIsmMB2RowNyQ0Ks/edit?usp=sharing

[@friarken]

Hi David, thanks for this, so the career break could be more than 10 years before you actually retire correct?

[@dfountain]

The career break can be at any time (it doesn't even have to involve switching jobs - just taking a month opted out of the scheme creates the required break). The break could be 20, 30 or 40 years before you actually retire. If the break is more than 5 years then you start on the new scheme and benefits on the old scheme are worked out to the start of that long break - and increased by inflation from that point (but will not use the service after the break) Deliberately timing a 'break' requires some foresight but if you realise that you have reached what might be a plateau in terms of pay scale and can see that pay rises are not going to exceed inflation for a few years then that might be the time to 'gamble' by taking a month out of the scheme.

[@kayevans5524]

I have just come across your videos- they are certainly an eye opener. I have been able to work out rough figures from your sheets and should be open to options, as my DoB is 22/09/65- border line??? I did have 1 year out of teaching and that is clarified on the statement; however, my one question would be- does unpaid sick leave count as a break from teaching? I was off nearly 2 years and had neurosurgery during that time. On my pension statement it does not state that I didn't pay contributions at that time but it does count a number of days off- not sure if these actually co-ordinate though! Any help or comments would be really appreciated- thanks in anticipation.

[@dfountain]

Whilst you are paid half sick pay or more it counts towards the pension. However, I believe that when it drops below that you are not given credit in the pension but it also does not count as a break in service. During that time though you were covered by the life insurance element of the scheme. Any breaks are clearly labelled as such on the statement. Your DOB shouldn't be a factor in determining which scheme you are in. This depends on what date your started paying into the TPS.

[@kayevans5524]

@@dfountain Thank you. That has been really helpful to know 🙂

[@just_interested1]

Hi David, if a teacher has a higher salary now than in the previous 10 years I think you suggesting that they do not need to take a break in service. But my question is, isn't it relatively safe to do so as in effect it locks in the best 3 of that last 10 years, and as the teacher continues going forward, it wouldn't really matter if their salary went up or down as either way the best of the hypothetical valuations would be used? So it wouldn't matter if it was within the original 10 year (ie pre-break) or most recent 10 year (post-break) period. As the only penalty is that of the missing month of pension ie 70 quid a year. Or am I missing something. In other words to me it looks like everybody could safely be advised to take a 1 month break as the upside is very good and there is hardly any potential downside.

[@dfountain]

Given that we have had 10+ years of pay freezes and below inflation pay rises your point is well made and is likely to apply to the majority who do have final salary pension credit because they will be older teachers who are likely to have been on the same pay scale for most of the last 10 years. However, I would encourage anyone considering this to actually get the figures and to see if they need to. Why lose the £70 a year if you don't need to? Also, whilst you are out of the scheme you are not covered by the death in service grant and enhancement to any survivor pensions. You may want to look at another, more recent analysis, that I did on this topic called "The Pay Plateau": kzbin.info/www/bejne/p4GYiZ6nibJknJo

[@KenF65]

Really interesting video! One question (probably more later) - when calculating average salaries to determine if a restricted or unrestricted calculation is used, does the calculation for the post-break salary go back only as far as the break (if less than 10 yrs) or does it go back a full 10 years regardless?

[@dfountain]

For breaks before 2007 the final salary is based on the best year from the previous 3 years. For breaks in 2007 or later it is based in the salaries going back 10 years, revalued for inflation. The 10 years are calendar years and take no account of any other breaks. For example, take a series of breaks; Sep 2005, Sep 2008, Sep 2015 and Sep 2022. There will be 4 hypothetical calculations, one for each break. Sep 2005 will use the salaries over the previous 3 years (different rules for per-2007 breaks). That is Sep 2002 to Aug 2005. Sep 2008 will use the salaries over the previous 10 years. That is Sep 1998 to Aug 2008. Sep 2015 will use the salaries over the previous 10 years. That is Sep 2005 to Aug 2015. Sep 2022 will use the salaries over the previous 10 years. That is Sep 2012 to Aug 2022. Of these the last one will produce the same figure for both restricted and unrestricted calculations because the scheme stopped being able to add service AFTER March 2022 and as such the number of "years" that can be used later than March 2022 will be identical for both versions of the hypothetical calculation.

[@KenF65]

@@dfountain Thank you for your reply of a few months ago and for continuing to produce these really informative videos! I've been studying my figures and although I had a break after my three best years I think that as the first of those three will shortly drop out of the 10-year window I may need another break. This is because the post-break FS will become less than the pre-break FS which will switch the calculation used from unrestricted to restricted. Could that happen or have I still not fully grasped this? (The break was in 2018).

[@SoniaPidduck]

as on MP4 at the time. The past two years I have been on UP3 with a TLR - do I need to take another break in service to secure the final salary scheme? I began TPS payments in 2009. Thanks in advance.

[@dfountain]

Unlikely, I suspect that after one more year your Method B will be better than your current Method A.

[@alistairfordom3675]

Hello David. I firstly wanted to say how useful I have found your videos and the website. I have gleaned more from them than any other source, even the big pensions/financial advice companies. I have a specific question. I too earned more salary than I do now. My larger salaries are now starting to fall outside the 10 year period. I took advice and made a break in my service about 2 and a half years ago. What I am noticing, is the final salary (which becomes even more important because of McCloud) is diminishing on my benefits statement - Method B. I am presuming that that the break will be used to create a hypothetical calculation when I retire, which might be in less than 6 months, and that it simply isn't shown on my statement, until I retire. If not, I'm uncertain as to why it is still falling. Thanks in advance for any advice you may be able to give, Alistair

[@dfountain]

You are right but there is another potential issue which I will go into later. The benefit statement does NOT include the pension that would be produced from the hypothetical calculation. Personally I believe this is a breach of the legislation that requires schemes to provide you with valuations based on your service so far because all of the data and calculations needed for hypothetical calculations are available at any point in time. So it can be done, they just don't. You do have to trust (and keep an eye on) that they will do the calculation when you come to claim your pension. Now to the potential issue. Your break from 2.5 years ago will have locked in the final salary to be used. However, to get the very best version of the hypothetical calculation you do need your final salary when you do finish - be that in 6 months or whenever, to be HIGHER than it was 2.5 years ago. You really need to know what your final salary figure was back when you took the break because it doesn't get increased by inflation from that point. Inflation is the thing though that makes it possible to get your current salary over that older figure.

[@alistairfordom3675]

@@dfountain Your reply is heartening. I think I am safe on the second point you make. I am now a teacher in a SFC earning just above top of main scale as Course Leader. My previous salary was decidedly higher, especially when revalued against inflation. I am only 55 but have decided that after having done 29 years service I need to move on to another chapter in my life and I intend to work for no more than another year. Your reply and answer could not be more timely as I may well decide to go in September. Thanks very much.

[@alistairfordom3675]

@@dfountain PS so sorry you found out too late! Seems very unfair. Maybe there might be a 'McCloud' type ruling that might rectify this and get people back dated remuneration.

[@dfountain]

Glad to hear you have plans under way...though I'm not sure you understand what I am saying about the higher/lower salaries. If your previous salary was HIGHER then that is not necessarily good. It means you may not get the benefit from the last 2 years worth of contributions. It is a bit bonkers but you want your older salary at the break in 2020(?) which will have used the 10 years from 2010 to 2020 to be lower than it is when you finish this September, which will use the salaries from 2012-2022. You only have two years of inflation working for you in this scenario.

[@dfountain]

LOL...if only we could use hindsight on every issue...but, no, I have no concerns over that in reality. The anger I felt was directed entirely at myself and lit the fire that I have to help others get the best from the system now.

[@MathewCymru]

My wife has already had a two year break from the scheme (2010 - 2012). If she has another break (one month), would two hypothetical calculations be made?

[@dfountain]

There would be two then, but does she need another? Her 2010 break will be using 2000-2010 and so long as her final salary when she eventually stops for the last time is higher than it was back in 2010 she will get the unrestricted calculation. This sheet should be able to give you some idea of what her salaries in the 2000 to 2010 period would be equivalent to now: docs.google.com/spreadsheets/d/1WH7kyEgdZPQqQHc54lqnKhyN3tf8XLXIX1Uvgp_DJ-g/edit?usp=sharing

[@MathewCymru]

Just used the sheet @@dfountain and she doesn't need to take another break if the figures are right. Her 2007, 2008 and 2009 salaries were her best when inflation is added. However, she was part time during those years does that matter? Is there a minimum she needs to have worked during those years?

[@dfountain]

If you want to send me her statement I can check: [e-mail] Part-time salaries are counted as the full time equivalent - so it is that column that gets used. However, the "years" depend on whether she was a "regular" or "irregular" part-time contract. These are denoted by PTR or PTI on the statement. PTR uses the entire calendar period, so 1-09-2007 to 31-08-2010 would be 3 "years" but if she was PTI then only the days worked count towards the 3 years period, in which case it would stretch beyond 3 calendar years.

[@jengrainger]

Hi David i started teaching in 2011. I have just found your videos. Is it too late to do a month opting out now? Thanks

[@dfountain]

The 3 "years" are assessed month-by-month. They are therefore a rolling 36 month period. If your best 3 years (see Method B on your statement) are 2014 onwards then you can "save" October (it is not too late to opt out for September).

[@chrislehane9551]

Hi Dave - this has been very informative - thanks so much for the video - but could still do with some very basic advice. I had 26 years of service up to and incl Dec 2019 - with best three years being 2009-20011. I then came out of the TPS scheme in dec 2019 (not by choice) when I moved to another school, and have been out of it ever since. I have now been given a 2 day a week contract for a year - which may/may not be extended beyond that. I envisage working another 5/6 years - but most likely part time - and certainly nowhere near the salary levels of 2009-2011 !! Put simply should rejoin the TPS scheme ?

[@dfountain]

Yes. Re-join. Nothing you do now can adversely affect the final salary pension - but be prepared for the statement on the TPS website to show it going down! (I suspect you will want to call TPS to confirm what I am telling you). The problem is that the statement produced by TPS does NOT include any of the hypothetical calculations but they will be used when you come to claim your pension. So whilst your statement may show a lowering of your final salary they will do the hypothetical calculation based on your break in December 2019. The career average pension is still a very good pension and you should re-join asap. One extra thing for you to keep an eye out for relates to the period where you have been out of the scheme up until 31 March 2022. Part of the remedy legislation related to the transition from Final Salary to Career Average could be relevant to you. You could be offered the opportunity to revisit this period where you were not in the scheme and reverse that choice subject to paying the missing contributions. If you do consider that I would strongly recommend you get the figures worked out very carefully as that period 2009-2019 is one where teacher pay was at it's highest in recent years and you wouldn't want to add 2-3 years if it meant your final salary figure fell significantly.

[@chrislehane9551]

@@dfountain Thank you so much - I really appreciate your time and advice - you're a star. Between Dec 19 -March 22 - I was either at a school with NO TPS pension - or in non teaching roles ( I moved to a new area and could only get Cover Supervision work !) - So I'm guessing your last paragraph may not be relevant to me ? My final question concerns the fact that I only have a one year contract - what would happen if I cant get any teaching for the following year - I believe you cant leave TPS for a 2nd time and still be eligible for a HC ??

[@dfountain]

There's no such restriction. Each and every break creates a new hypothetical calculation. See the last page of this for an example: www.teacherspensions.co.uk/-/media/documents/member/factsheets/applying-for-retirement/hypothetical-calculations-v1-april-2019.ashx

[@chrislehane9551]

@@dfountain - Thanks so much David. Your advice has been really useful

[@MathewCymru]

Hi Dave. Can the hypothetical calculation be based on the final year before the break (method A) or does the hypothetical have to be based on my best 3 years with the last 10 before the break?

[@dfountain]

It is based on the rules at the time of the break. After 2007 it is the best of Method A or B. So, yes the final year is used if it is the best. For pre 2008 breaks there is a different method, C, which is the best single year in the previous 3.

[@christownsend1460]

Hi David, am i right in thinking that if my earnings are now at a higher level than a previous peak 8 yrs ago, then a break is not necessary? I am 50 now and intend on reducing my hrs to 80% for the next 5 years before leaving teaching. From 2016-2019 were my highest earning years peaking at 44k, earnings now from sept 47.3k full time. Intend on starting part time 80% from Jan 25. Thanks for highlighting the loophole and i hope my question makes sense. Thanks

[@dfountain]

You do need to be careful in assessing what the "target" was back at the time of the break, that is the value in 2016, 8 years ago. That would use the revalued salaries from 2006 to 2016 and as such could produce a higher salary than any that you were actually paid. This sheet can help you work out what you need to "compare". docs.google.com/spreadsheets/d/1GUB2WnLHm2LFmPPv6ihwMvL7VVtQLALd8Zcf58-GnZ0/edit?usp=sharing

[@christownsend1460]

@@dfountain haven’t taken a break yet but I’m thinking of doing it now before going part time👍

[@dfountain]

@@christownsend1460 Sorry, I misread that. 44k in 2016 would now be equivalent to £57,780 - ensuring you check the value of those older salaries and act if necessary to protect them is the key. This may help you find that out: kzbin.info/www/bejne/mZvRpYCQZ8mKaLc

[@christownsend1460]

@@dfountain thanks

[@daveharding9196]

Thanks David for such great videos, I have been bamboozled up to now with information but this is a revelation and the fog is clearing although I will need to watch the videos again to check info. I started in 1994 worked full time till 2017 took 3 year break (hence the quality info now becomes useful to me) returned to work but at 0.4 timetable. So I think I will benefit from the hypotheticals but will the part time bit work against me as will they use pro rata final salary or the equivalent full time salary. If you could lead me in the right direction I would much appreciate that. Im assuming the TPA will show us all the alternative figures when the time comes? So i don't want to fall through a trap door. Many thx

[@dfountain]

Sorry for the delay in replying Dave. All employment under this scheme uses the full-time-equivalent salary when working out the best "Final Salary", so part-time work does not cause a sudden drop just because you receive less in a year. There are two ways a part-time role can cause a drop. 1) The pay scale has been dropped, or TLR removed. You are protected against this to some extent by the method B (best consecutive 3 years in the last 10), or 2) Your last 10 years, of course, keep moving forward whilst you are working. A part-time role moves them forward a full year in the same way as a full-time post does. This is important if your best 3 years are exactly 10 years ago. In both of these cases you really need to be aware of how your best "Final Salary" is calculated and, for how much longer you intend to teach. Your break in 2017 will indeed give you a hypothetical calculation. The issue now needs some crystal ball forward planning because whether it is worth you remaining in the scheme until April 2022 or not depends on: a) what your best salary back in 2017 was b) how much service you had built up by then c) what your salary is likely to be when you finish (in however many years from now) - this is the crystal ball bit d) when you intend to finish teaching I do have some spreadsheets that can help work some of this out

[@jackiemcc9414]

Another query... if you decide to take your tp at 60(npa) and have paid into the career average scheme for a year (1/57 of earnings that year) must you take that part as well (with a large reduction 7x5%) or is it possible to leave that to 'grow' a bit and take it at 67, assuming you can afford to leave it.?

[@dfountain]

After 60 you can choose just to take the NPA60 pension and leave the other pension until later.

[@SoniaPidduck]

Hi David, I took a break in service 2013 for 9 months. I was on MP4 at the time. The past two years I have been on UP3 with a TLR - do I need to take another break in service to secure the final salary scheme? I began TPS payments in 2009. Thanks in advance.

[@dfountain]

2008-09 M4 Salary was £25,898. That would be equivalent in 2023 to £36,876. The current U3 is £46,525, so on the face of it, taking another month out to lock in this much higher amount would seem prudent...but do some fortune-telling...if you see any potential future increases in your salary, taking on a TLR for instance, then it may not be necessary just yet. Also do check whether your current Method B is better, or close to your current salary because if it is and the years involved are not close to being 10 years old then you can wait to see what happens.

[@Jane51cat]

Hi David. Up until Aug 21, I was earning about 18000 per year more than I am now. I very much doubt my salary for the next few years will climb up anywhere close to what I was earning previously. I have a 5 day break in service from 1.9.21 to 5.9.21 already. Therefore, I presume there is no real benefit to me taking a one month break in service now? I’d like to take my pension early at age 55 or 56 by the way (in a year or two). Thanks!

[@dfountain]

It will depend on whether your final salary calculated to the first day of the break, 1.9.21, ends up being higher or lower that your final salary when you do finally finish in a year or two. To work that out we'd need to check the salaries from 2011-2021...given the lack of pay rises in that period it may well be that your salaries from 2011-2014 were the best once inflation is added to them. However, if you intend to go in 2024 then that final salary will still include many of those years (2014-2024) and so with inflation added to them - currently running at 7-9% - then it could well be the case that even if you miss out the very best years that you final salary will get higher. This is important because if it is lower then that break in service does NOT get to use your service from September 2021 to March 2022 whereas if it is higher then it does.

[@jasonboulter8700]

Hi David, my pension profile shows a break of three days when I left one school and started at another (1st jan 2016 to 4th jan 2016), I am earning less in this role than I was then. Will my previous salary for pre 2016 be inflation linked after 2016. I'm thinking of taking early retirement from 1st jan 2023. I started teaching in 2000.

[@dfountain]

Whether this works in your favour or not depends on two figures. 1) The final salary based on your service from 1 Jan 2006 to 31 Dec 2015. (revalued to 1 Jan 2016) 2) Your final salary based on your service when you finally leave. So if you go 31 December 2023 then the 10 years from 1 Jan 2014 to 31 Dec 2023 If you final salary in 2023 is HIGHER than the 2016 figure then you get the most benefit. So, even if you moved to lower paid post in 2016 when you factor in inflation and 7 years of pay rises etc you could well be over what you were on in 2016. If not then you may want to consider working to April 2023 because in mid-April the salaries get another inflation boost and with that currently running at 10% this could raise the 2023 figure high enough. If you want a hand with the calculations just let me know.

[@adeypoos]

Hi David, this is interesting. I took 41 days unpaid leave in early 2009 after the birth of my twins to help us get through and to enjoy those early weeks of childhood. Does this constitute a break from teaching in the context of this hypothetical case? I assume it does because I wouldn't have been paid a salary during that time and hence my pension contributions would have been zero as well. Also, where did you obtain your salary revalue indices for your red bars in the video? Thanks in advance.

[@dfountain]

Hi Adrian I suspect it will NOT be counted as a break. Unpaid leave isn't something I've been asked about before so I would love to know what your record says; it may well depend on how your employer has recorded your service through that time. I know, for instance, that unpaid days such as the two I had when we went on strike did not count as a break, so I suspect that unpaid leave would also not be counted as a break. There is a page on the website that says that they would have been recorded as 'excluded days' and as such do not count as a break. www.teacherspensions.co.uk/employers/advising-members/life-events/family-leave.aspx The easiest way to check this is to go on to the teacherspensions.co.uk website and download the PDF version of your benefit statement. Towards the bottom of that there is a record of your entire teaching career and any breaks are clearly marked as "Break in Pensionable Service". The revaluation figures are published each year and are the same as those used in revaluing public sector pensions each year: www.gov.uk/government/publications/public-service-pensions-increase-2021

[@todnezzy]

Thanks David for these very informative videos, particularly this one - an area I didn't know existed. Quick one really. Do I need to throw in a break now or wait until March/April 2022 to establish an unrestricted FS. I've been teaching since Sept 1999 and I'm looking to retire at 60, 2030. Presently my FS is based on method A 67130 with method B 65000, last 3 years. I'm on SLT and intend (in theory!) to stay within SLT until I retire (I may/may not reduce my hours closer to 60). I would suggest my salary will remain more or less where it is now due to foreseen 0% pay increases. As I say, is it worth breaking now to enhance my earlier years and thus my final salary?

[@dfountain]

I'm afraid there is no absolute guarantee that doing one or the other will give greater benefit without being able to see into the future. That said there are some fairly simple points to address before making the decision. The choice of opting out now (October being the next month you can miss) would create a situation where you would need to 'know' that in 2030 your 'final salary' at that time is going to be higher than it is now. The reason for this is so that you get the unrestricted calculation. (In other words it would then count the months November 2021 to March 2022 in it as well). I would fully expect that to happen. Your current salary will still be one of the 10 years that is used in method B even if you didn't get any further pay increases (though a pay 'change' is critical!). In 9 years time the salaries you had last year, this year and next year will all be increased by inflation and would therefore, as your method B, almost certainly exceed your current salary. However, there is that risk that it may not. So the question is then whether it is worth it or not for the sake of waiting 5 months. Once we reach March 2022 there is no difference between the restricted and unrestricted calculation because no more service after then will count in either calculation. The benefit of opting out in October is that you gain 5 months worth of inflation...but with inflation running at 2% pa is that worth it to you? If you expect your salary to increase by more than inflation then there is no point opting out at all. It is only at the point where you foresee a plateau in pay that it becomes a good strategic move. The forthcoming pay freeze is such an indicator. The next question then is which month is it worth taking out; October 2021 March 2022, or April 2022 Taking October out risks getting the restricted calculation but adds 5 more months of inflationary value to your pension. Taking March out loses a month from the final salary calculation. (1/12th of 1/80th of the final salary...or about £70 a year on your pension and £210 from the lump sum based on your current salary at the age of 60). Taking April out loses a month from the career average calculation. (1/12th of 1/57th of the final salary...or about £100 a year on your pension, with no affect on your lump sum based on not claiming the pension until 67. To put this in the same terms the reduction on the CA scheme for taking it at 60 is about 70%...so £70 lost from the pension if you took it at 60).

[@suzanneperry6575]

Hi David, thanks so much for your videos, I was clueless but am learning. Can I ask if my Scottish teachers pension works in the same way. I’ve been teaching since 1995 and am 50.

[@dfountain]

I believe so. The schemes have diverged in their management but I don't believe there are actually any differences in their implementation. Indeed, I was sent something by a Scottish member that indicated that the changes coming due to the McCloud judgement are going to be handled in the same way.

[@gusdogbrownlab435]

Hi...I've enjoyed watching your videos to try to get my head around this stuff. I seem to have several past years of non pensionable even though I was teaching at the time. I was part time 0.6 and 0.8 contracts. Is there anything I can do to improve this? Didn't know if there were some changes that I am not currently aware of.

[@dfountain]

You can elect to have your service non-pensionable simply by opting out of the TPS. If you have your payslips from this time you can check to see if pension deductions were made and if so contact the school to get them to correct the record. If you don't have the records from the time then you can get a printout from HMRC that details your National Insurance contributions and if the period in question was before 2016 you should be able to see from those records if you were 'contracted out' of the extra state pension. The only way you could have been 'contracted out' is if you were IN the TPS at the time and so that is good evidence that you didn't opt out of the pension scheme and so, once again, you can contact the school to tell them to correct your record.

[@BobJJ9999]

Is there a way to message you privately? I have an interesting issue surround this break in service I’d love to get your take on.

[@dfountain]

my website dfountain.co.uk has a contact page that lets you do that

[@jackiemcc9414]

Hi David.. one question.. does the salary earned in the career average part impact on your best 3 of 10 calculation in the Final salary scheme. That is, are they still part of that calculation or does the final salary calculation remain fixed from 31st March 2022 ?

[@dfountain]

Yes it does continue to be used. This is called the "final salary link" and it is only broken if you leave the TPS for more than 5 years. If you worked continuously to, say, 2040 then your final salary pension would use the salaries from 2030-2040. It's worth looking at my video called "The Pay Plateau" if you are thinking about taking a lower paid post or don't believe teachers will get above inflation pay rises!

[@jackiemcc9414]

@@dfountain thanks again David.. I have just opted out for a month to prevent my 3 year average decreasing.

[@dfountain]

...and the beauty of doing that is that when you go back in if you were to go on, in the future, to gain a significant promotion then those future salaries would still be used. The opting out guarantees your pension won't fall but doesn't limit its ability to rise.

[@aaqr4579]

Hi David The content of this video was very unexpected and has me in a panicked but excited action mode...so thank you. If I understand this correctly then I think I am one of those teachers who should take a temporary break in TPS? I would greatly appreciate it if you can let me know if I am correct in my thinking please or have I got it completely wrong?☹️ (Dont worry I know your disclaimer that you're not a qualified financial advisor😂) Im hoping to retire at 55 (Im currently 51). I started teaching 2004. Im on both final salary and career average (with the Mcloud option). My best salary was as a HOD from 2017 until 2020. I do not forsee my salary getting higher than that since I took redundancy from the HOD role and Im going down to 4 day a week teaching probably until I retire. So do you think my thinking is correct and that Im likely to benefit by a temporary optout? Also you didnt say much about the 'Restricted' option. Did I miss something? Oh and have you ever thought about being a finacial advisor for teachers? You have the knowledge and the skill to be able to explain options in simple terms👍. Thank you for your help and all the good work that you are doing.

[@dfountain]

IF your best final salary is indeed from 2017-2020 then you do not need to consider opting out for a month until 2027 (2017+10). However, do check that your BEST salaries are indeed from 2017-2020...this is something that catches many out because it is NOT your actual salaries that are being used. The salaries from 2011-2020 are all revalued by inflation which means that, for many, their 'best' salaries are a lot further back than they first think. This is the effect of over a decade of teachers receiving pay freezes and below inflation pay rises. It is easy to check: Go to the TPS website and download a PDF of your benefit statement. On page 5 it will show you both methods for calculating the "Final Salary". If Method B is higher it will tell you what dates it was calculated over. If those dates include 2011 then that should set the alarm bell ringing...but even then, that is not enough to *definitely* say that a month opt-out would be the best action because it does depend on several other pieces of information...one of which is related to your other point about the restricted calculation. At that point I would suggest you sit down with a spreadsheet and project what will happen to your salary between now and April 2022. April 2022 is the key date because that is when we all stop adding to the Final Salary pension and the dilemma over whether you get a restricted or unrestricted hypothetical calculation is removed. My sheet for projecting what will happen with your 'Final Salary' is here: docs.google.com/spreadsheets/d/1Prxp4yNdoNIQ6Cr81pD1NN-m581CIsmMB2RowNyQ0Ks/edit?usp=sharing

[@aaqr4579]

@@dfountain Thank you for clarifying this David. I will need to look further into this as you suggest. Can I also say a huge thank you for providing the various spreadsheets. They really help a lot. Much appreciated. Keep up the good work.👍

[@batts2503]

Hi David, Firstly can I say thank you for these videos. They are brilliant and answer so many questions and are very much appreciated. I started teaching in 1995 and took 7 months out of the scheme back in 2003 so will this apply to me? I've checked my latest benefits statement and it's showing as method A £63,997. It was £25,800 when I took the break. I'm now 50 and and my NPA is 60 so 10 years to go! Thanks in advance.

[@dfountain]

Before I delve a little deeper into that do bear in mind that your benefit statement won't show you anything about the hypothetical calculation that needs to be done in regard to the 2003 break. Your break in 2003 means that the final salary, at that time, would be either the 12 months (2002-2003) or the best 3 revalued salaries from the period 1993-2003. However, given that you started in 1995 I suspect it would be the last 12 months from before the break as you would, probably, at that time have just reached the top of the pay scale. As a rough guide we can look at what your 2003 salary would be worth in 2021. The government publish the inflation factors for this. I will assume you finished in August 2003. The inflation from 2003 to 2021 is 52.56%. That makes your 2003 salary comparable in 2021 to £39,453. So, the break in 2003 is of no use. Now, the question is whether you believe your salary will rise above inflation in the next few years. (I would suggest that would be more likely to be through a promotion rather than a pay rise!). If so then there is no need to have a break until you come to a point where you do see such a plateauing. If you believe you are on a plateau, where your pay will rise by less than inflation, if at all, then taking the month of April 2022 out of the scheme would create the situation where your final salary pension will use your current salary of £63,997 BUT will also give it the equivalent boost each year of the inflation for that year. For example, suppose you were to get a pay rise of 1% in September but that inflation was 3%. Your method A would go up to £64,637 The break salary would equate to £65,917

[@batts2503]

@@dfountain Thanks for your reply David. I misunderstood the calculation but I think I get it now. I'm currently on L18 and don't think I'll be moving on or going for promotion so my salary will more than likely plateau over the next few years coupled with an increase in inflation so it does seem worth taking a break. I pay into AVCs as well so it may be worth paying that month's contribution into the AVC? I'll look into how to take a month's break in April next year. Thanks again.

[@dfountain]

Yes, I suspect you have your figures worked out - being on £64k would mean that you are likely to be taxed at 40% on some of your income...sticking that excess into a private pension/AVC makes sense as you will be able to retrieve it once you stop work and pay less than 20% tax on it rather than the 40% now.

[@spencerosei2616]

Started teaching in 2008 and opted out until 2016 and have been paying back in since September 2016. Do i get final salary up until 2022 or am i being hopeful here 😊

[@dfountain]

On the face of it you are being hopeful as I don't think you will qualify. The problem is that of the greater than 5 year break in service. This is known as a 'disqualifying break' and in your case will have stretched from 2008 to 2013. Now, bear in mind that I am not a lawyer and cannot guarantee that my opinion is right, the problem as I see it for you, is that in 2013 the Career Average scheme hadn't started so it would be difficult to argue that its introduction was the reason you did not opt back in. The disqualifying break was always a part of the old schemes so that also isn't relevant. The proposed legislation (see bills.parliament.uk/publications/42278/documents/567 ) does have arrangements for dealing with restoring opted-out service (see "5 Election for retrospective provision to apply to opted-out service") BUT I believe this only applies if it would have been part of the scheme and only from 2015-2022 which is a problem for you as your rights to be in the scheme expired, imo, in 2013. Your service from 2016 onwards is also not within the scope as the 5-year disqualifying break prevents it being considered thus.

[@spencerosei2616]

@@dfountain thank you for your reply David. I was foolish to opt out back in 2008, I should've stayed in the scheme from the very beginning. No point crying over lost pennies I guess, I will make sure to never opt out again.

[@dfountain]

You have nothing to lose in making an application though using the confusion over the impending introduction of the Career Average scheme as a reason for not opting back in sooner. That will need to wait until the legislation and mechanisms for doing this are in place...in the meantime remember that the CA scheme is still a good scheme - kzbin.info/www/bejne/oXvThGaiiJibZ5I

[@spencerosei2616]

@@dfountain very true worth a try. Worst case scenario I will be stuck on the CA which is not the best deal but certainly not the worst when compared to other pension schemes. Thank you for the educational videos, I enjoy watching them.