Care Fees Planning

If the pension is in payment from the Teachers Pension Scheme care should be taken that full details are obtained of the benefits payable.

The grounds for retirement may be redundancy or for the purposes of organisational efficiency. If these terms apply then the retirement is known as being ‘premature’.

This means that part of the benefits are payable from the Teachers Pension Scheme, and part is paid by the employer – the local authority e.g. North Somerset

The benefits payable from the local authority are not deemed as pension rights in accordance with the Welfare Reform and Pensions Act 1999 and therefore will not be included in the calculation of the Cash Equivalent of benefits.

I would recommend that if the Form E shows the pension as being in payment that a Form P is requested to clarify the situation, but with an additional question in the covering letter to confirm whether retirement was classed as ‘premature’

Also please remember the previous issue that we highlighted regarding the AVC scheme benefits with Prudential.

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