JNC SPPA Circular July 2025 02 09 25
Renfrewshire Council · 2 September 2025
Back to Renfrewshire Council Joint Negotiating Committee for Teaching Staff — 2 September 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Agenda Item .......... Renfrewshire Joint Negotiating Committee for Teachers To: Renfrewshire Joint Negotiating Committee for Teachers On: 02 September 2025 Report by: Joint Secretary (Management Side) SSPA: Scottish Teachers’ Pension Agency Circular 31 July 2025 1. Summary 1.1 The purpose of the attached circular is to notify employers and members of changes to the normal minimum pension age from 6 April 2028 1.2 The following key information is included therein: - • The UK Government has announced that the earliest age members can take their pension from will increase from age 55 to 57 with effect from 6 April 2028. • Members will be protected from these changes if they joined the Scottish Teachers’ Pension Scheme (STPS) before 4 November 2021 • This increase does not apply to members who take their pension early due to ill health 2. Recommendation 2.1. Members are asked to note the contents of the attached circular.
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STPS Circular Scottish Teachers’ Pension Scheme 2025/08 Who should read: • Members • Chief Executives • Directors of Education and Finance • HR Managers • Payroll Managers • Teachers’ Unions and Representatives Action: Employers to inform scheme members Subject: Increase to the normal minimum pension age from 6 April 2028 Date: 31 July 2025 Background The normal minimum pension age (NMPA) is the earliest age from which most people can access their workplace or personal pensions. Registered pension schemes, such as the STPS must not normally pay any benefits to members until they reach the NMPA, except on ill health grounds. The NMPA is set by the Finance Act 2004 and was introduced in 2006. In short: • before 5 April 2010, schemes could allow members to retire from age 50 • from 6 April 2010, the NMPA increased to 55 • from 6 April 2028, the NMPA will increase to 57 The NMPA is different from the state pension age, but the changes to NMPA align with changes to the state pension age, which is due to increase to age 67 in 2028. The state pension age is the normal pension age for members of the 2015 scheme, which is the age benefits can be taken without reduction. The purpose of this circular is to notify employers and members of changes to the normal minimum pension age from 6 April 2028. Key information in this circular: • The UK Government has announced that the earliest age members can take their pension from will increase from age 55 to 57 with effect from 6 April 2028. • Members will be protected from these changes if they joined the Scottish Teachers’ Pension Scheme (STPS) before 4 November 2021 • This increase does not apply to members who take their pension early due to ill health.
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STPS Circular Increase in the normal minimum pension age to 57 From 6 April 2028, the NMPA will increase from age 55 to 57. The majority of existing members of the scheme will be protected from this change and will retain a protected pension age (PPA) of age 55. Protected Pension Age (PPA) The Finance Act 2004 provides transitional protection to certain members through a PPA, which protects them from the changes to the NMPA being introduced from 6 April 2028 and allows them to retain their current NMPA of age 55. Members will qualify for a PPA if they were a member of a scheme before 4 November 2021, with a right to claim their scheme benefits before age 57. In the STPS, this includes persons who, immediately before 4 November 2021, were active, pensioner, deferred or pension credit members of the Scottish Teachers’ Superannuation Scheme (STSS) or the STPS 2015 Scheme. They will qualify for a PPA of age 55 in that section or scheme. The PPA will apply to pension benefits built up before 2028 and also benefits accrued after 2028. Members who do not have such a right (broadly anyone who joined after 4 November 2021), will retain the current NMPA (age 55) until April 2028, from which point their NMPA will increase to age 57. The increased NMPA of age 57 will apply to benefits accrued before and after 2028. Where members transfer, or have transferred, their pension to a new scheme, which they joined for the first time on or after 4 November 2021, the transferred-in benefits will be ring-fenced and will retain a PPA (age 55 or earlier) but benefits subsequently accrued in the new scheme will have an applicable NMPA of 57. Further information An initial list of Frequently Asked Questions can be found in Annex A and a flowchart is available in Annex B. There are a number of specific scenarios and issues which require further consideration before the NMPA changes are implemented in April 2028. We will continue to update the SPPA website and provide further information as soon as it becomes available. Please contact SPPAPolicy@gov.scot if you have any enquiries about this circular. SPPA Policy 31 July 2025
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STPS Circular Annex A Frequently Asked Questions Q1. Who made the decision to increase the NMPA? A1. In 2014, following the consultation on ‘Freedom and Choice in Pensions’, the UK Government announced it would increase the NMPA to age 57 in 2028 to coincide with the rise of state pension age to 67. This applies to most UK private and public sector pension schemes. While the Scottish Government has executively devolved responsibility for public service pension schemes, including the Scottish Teachers’ Pension Scheme, it must comply with UK Government primary legislation, such the Finance Act 2004 which provides for the NMPA. Q2. Does the increase in the NMPA apply to all Public Service Pension Schemes? A2. No. The increase in NMPA from age 55 to 57 does not apply to members of public service schemes for Firefighters, Police and the Armed Forces. It does, however, apply to all members of the Scottish Teachers’ Pension Scheme. Q3. Does this change apply to AVC Schemes? A3. Yes. The NMPA for accessing Additional Voluntary Contributions (AVCs), including those with Prudential, will increase from 55 to 57 on 6 April 2028. This change applies unless you have a PPA or are retiring due to ill health. Q4. Do the changes apply to additional pension? A4. Yes. The NMPA for accessing any additional pension you may purchase will increase, in the same way as for your main scheme benefits, from 55 to 57 on 6 April 2028. This change applies unless you have a PPA or are retiring due to ill health. Q5. What is the impact of this change on members affected by the 2015 Remedy? A5. If you are eligible for Remedy and have a PPA, you will retain this right for any service rolled back into the final salary Scottish Teachers’ Superannuation Scheme (known as the legacy scheme).
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STPS Circular Q6. I have deferred benefits in the scheme. Will I be affected by the change to NMPA? A6. If you joined the Scottish Teachers’ Pension Scheme before 4 November 2021 and have subsequently left or opted out and deferred your benefits, you will have a PPA of age 55 and will not be affected by the change to NMPA. If you joined the scheme on or after 4 November 2021, your minimum pension age for claiming your benefits, including deferred benefits, will rise to 57 from 6 April 2028. Q7. What is the significance of the 4 November 2021 date? A7. This is the date the UK Government published a policy paper announcing details of the implementation of the increase in NMPA and a proposed framework of protection pension ages. They also published the Finance Bill 2021-22 on 4 November 2021 which introduced the changes in legislation. Q8. I am due to receive a credit pension through a Pension Sharing Order. Will I be affected by the changes? A8. If you are due to receive a credit pension through a Pension Sharing Order which was implemented before 4 November 2021, your pension will not be affected by the changes to NMPA and you will benefit from a PPA of age 55. Q9. What happens if I opt out of the scheme? A9. If you were a member of the scheme on or before 3 November 2021 and had a PPA you will be able to retain this PPA if you opt out of the scheme and return at a later date. If you joined the scheme on or after 4 November 2021 and do not have a PPA, any benefits accrued in the scheme before, or after, any breaks in service will be payable from age 57 after 6 April 2028.
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STPS Circular Yes Yes No Yes No No Annex B Will I have a Protected Pension Age and be eligible to claim my pension benefits before age 57, after the changes to Normal Minimum Pension Age are introduced from 6 April 2028? After 6 April 2028, the earliest you will be able to claim your STPS pension benefits from will be age 57 Were you a member of the scheme being transferred from before 4 November 2021? Were you a member of the Scottish Teachers’ Pension Scheme (STPS) before 4 November 2021 After 6 April 2028, the earliest you will be able to claim all your benefits in the Teachers’ scheme (including transferred in benefits) will be age 57 from 6 April 2028 Have you transferred service in from another registered pension scheme? The transferred benefits will be ‘ring fenced’ and you can claim these from the protected pension age in your previous scheme (e.g. age 55). The earliest you will be able to claim benefits accrued in the STPS pension scheme will be age 57 from 6 April 2028. The earliest you will be able to claim your STPS pension benefits will remain age 55.