Salary bands for Teachers’ Pension Scheme Employee Contributions April 2025
From 1 April 2025, the contribution bands for employee pension contributions to the Teachers’ Pension Scheme are rising by 1.7 per cent. This is in line with the September 2024 increase in the Consumer Prices Index (CPI).
The Department for Education recently held a consultation on proposed amendments to the Teachers’ Pension Scheme regulations. This included changes to the member contribution rates to make sure the scheme was bringing in an average 9.6 per cent. The bands have got out of line down the years because pay increases were lower than CPI (the indexation mechanism for the bands) and prior to April 2025 only brought in 9.45 per cent.
Members on the lowest salary band see no change to their contribution rate. Other members see a 0.3 per cent increase in contributions. The contribution structure is based on the teacher’s actual salary rather than the full-time equivalent salary.
The tiered contribution rates for the TPS from 1 April 2025 are as follows:
| Annual Salary (1 April 2024 – 31 March 2025) | Annual Salary (1 April 2025 – 31 March 2026) | Member Contribution Rate from 1 April 2025 (%) |
| Up to £34,289 | Up to £34,872 | 7.4 |
| £34,290 - £46,158 | £34,873 - £46,943 | 8.9 |
| £46,159 - £54,729 | £46,944 - £55,660 | 9.9 |
| £54,730 - £72,534 | £55,661 - £73,768 | 10.5 |
| £72,535 - £98,908 | £73,769 - £100,590 | 11.6 |
| £98,909+ | £100,591+ | 12.0 |
Indexation of TPS Career Average Pensions April 2025
The Government has confirmed that career average pension rights for members in teaching were increased by 3.3 per cent in April 2025. Members with deferred pensions will have their career average pension rights increased by 1.7 per cent.
All teachers in active service are now accruing pension in the career average section of the Teachers’ Pension Scheme. Their pension is being built up at 1/57 of their pensionable earnings each year. These pension rights are then increased each year until retirement at CPI inflation + 1.6 per cent for teachers who stay in teaching, and at CPI inflation only for those who leave the Teachers’ Pension Scheme.
The increase is based on the CPI figure from September 2024, which was 1.7 per cent.
Teachers’ Pension increase 2025
The April 2025 increase for TPS pensions in payment has been confirmed as 1.7 per cent, in line with the September 2024 increase in the CPI.
Teachers’ Pension Scheme Age Discrimination Cases (McCloud) - summary
Transitional protections meant older members of the TPS remained in the Final Salary Scheme or delayed joining the Career Average Revalued Earnings (CARE) scheme whereas younger members were immediately transferred into the CARE Scheme as soon as it was implemented in April 2015. The Courts determined in the ‘McCloud’ judgement that this was discriminatory against younger members and ordered the government to rectify the situation.
Eligible scheme members will choose between final salary or career average scheme benefits for the period 2015 to 2022 when they take benefits from the scheme, effectively getting the better of the two schemes. The choice will, for most people, be made at the point of retirement. Members can find out whether they are affected through a handy decision tree on the Teachers’ Pension Scheme website.
Members who have taken retirement benefits before 1 October 2023 will be provided with their choice as soon as practicable after 1 October 2023. There is nothing which members can do proactively to speed the process up. If you are affected, you will be contacted in due course.
Compensation arrangements for members in the Local Government Pension Scheme will be slightly different. All LGPS members joined the career average scheme in 2014, but some older members had the benefit of a final salary ‘underpin’, meaning they would not get less than they would have received if they’d stayed in the previous final salary scheme. This underpin will now be extended to all members until 31 March 2022.
McCloud – Remediable Service Statements
Retired members and others who have taken benefits from the TPS either are, or will shortly be able to make a choice on final salary or career average benefits for the April 2015 to March 2022 period.
The Public Service Pensions and Judicial Offices Act 2022 provides that members should receive a ‘Remediable Service Statement’ (RSS) within 18 months of 1 October 2023 (i.e. by 31 March 2025). The RSS will include details of the remedy period benefits calculated under final salary and career average rules to allow members to make an informed choice.
Eligible retired members will have 12 months from the date of issue to confirm their decision between final salary and career average benefits for the 1 April 2015 to 31 March 2022 period. If they do not make a decision, the regulations allow the scheme manager to ‘deem’ an election for career average benefits if that would have a higher monetary value; otherwise, final salary benefits will be paid. The majority of RSSs were issued by the statutory deadline, however, some more complex cases are still being dealt with.
Active members must subsequently receive an RSS every year. Deferred members can request an RSS each year. When members apply for retirement benefits, they will receive an RSS which includes their final benefit calculations. They will have 12 months from the RSS to make a choice. If no choice is made, then the pension cannot be processed. A member can change their choice at any point before their application for retirement benefits has been processed.
Cash Equivalent Transfer Values (CETVs) and Pension Sharing Orders (PSOs)
The NEU is aware of the continuing issues with the TPS providing CETVs and PSOs. The original delay stemmed from the change in the ‘discount rate’ in 2023. This has been compounded by the McCloud remedy, which has added additional complications.
Most cases have now been processed. Cases involving members who bought flexibilities in the career average scheme can be progressed, but some parts of the calculation have to be done manually, so there may be further delays. Cases involving retirees who divorced before October 2023 have not been processed due to a lack of final guidance from HM Treasury / Government Actuary’s Department. This problem applies across the public sector and is not limited to the TPS.
The NEU has been highlighting the disruption and inconvenience to members to the DfE and Teachers’ Pensions and has stressed (repeatedly) the importance of accurate communication. The Pensions Regulator is aware of the continuing situation but has not taken action against Teachers’ Pensions to date because the issue is cross-public sector.
Increase in state pension age
The state pension age for men and women is currently 66. The state pension age is increasing from April 2026. The Pensions Act 2014 brought forward the timetable for increasing the state pension age from 66 to 67. This will now occur between 2026 and 2028 for men and women according to the following timetable:
| Date of Birth | Date State Pension Age reached |
| 6 April 1960 – 5 May 1960 | 66 Years 1 Month |
| 6 May 1960 – 5 June 1960 | 66 Years 2 Months |
| 6 June 1960 – 5 July 1960 | 66 Years 3 Months |
| 6 July 1960 – 5 August 1960 | 66 Years 4 Months |
| 6 August 1960 – 5 September 1960 | 66 Years 5 Months |
| 6 September 1960 – 5 October 1960 | 66 Years 6 Months |
| 6 October 1960 – 5 November 1960 | 66 Years 7 Months |
| 6 November 1960 – 5 December 1960 | 66 Years 8 Months |
| 6 December 1960 – 5 January 1961 | 66 Years 9 Months |
| 6 January 1961 – 5 February 1961 | 66 Years 10 Months |
| 6 February 1961 – 5 March 1961 | 66 Years 11 Months |
| 6 March 1961 – 5 April 1977 | Your 67th birthday |
From April 2028, the state pension age will be 67.
Increase in the minimum age at which private pension rights can be accessed.
The ‘minimum normal pension age’ (the minimum age at which private pension rights can be taken) is set to increase from 55 to 57 from 6 April 2028. This is an overriding legislative change from the Government intended to link the age at which people can take private pension rights to the state pension age (which will be 67 from 6 April 2028 under current legislation).
There are exceptions which allow some groups to keep a ‘protected pension age’ at 55. This includes final salary rights in the Teachers’ Pension Scheme (but not career average rights) as the right to take a pension at 55 was set out in scheme regulations. To take pension rights at 55 from 6 April 2028, you must have been in the TPS before 4 November 2021.
Check your pension records
The NEU receives many reports of pension records being incorrect. The growing fragmentation of the school system means a growing number of small employers, and more changes of employer for teachers over their careers. These are perfect conditions for mistakes to be made.
Members should sign up with the Teachers’ Pension Scheme’s ‘MyPensionOnline’ service to check that their pension is correct. Teachers can register at www.teacherspensions.co.uk and will need their National Insurance number and an email address.
All members should check their salary details and that their contract and days out of service are correct. It is much simpler to deal with errors as they arise rather than shortly before retirement. It is therefore important to keep payslips and other salary records (like P60s).
The NEU recommends that you check your pension records and pension data at least once a term. You should raise any issues with your pension records immediately with Teachers’ Pensions.
