Advice and guidance about pensions including information on the latest pension updates (including the 2019 salary band contribution changes), pensions advice and key documents.

  • Advice Retired teachers
    Judges’ and firefighters’ age discrimination pension case

    The government has published its response to the July 2020 public consultation - Public service pension schemes: changes to the transition arrangements to the 2015 schemes consultation. The NEU is pleased that the government has adopted our position and favours ‘Deferred Choice’.  

  • Advice Older female teacher
    TPS age discrimination FAQs - February 2021

    The Government has announced its decision on how to deal with age discrimination issues in Teachers’ Pension Scheme (TPS). The issue and its solution affect pension arrangements for the vast majority of serving teachers.

  • Retired members conference
    Pension increase

    The Government has published the proposed increases in teachers’ pensions with effect from 6 April 2020.

Pensions update

Pensions increase payable from 12 April 2021

The Government has published the proposed increases in teachers’ pensions with effect from 12 April 2021.  This follows confirmation by HM Treasury of the Consumer Prices Index inflation figure for September 2020.  The same proposed increases apply to local government pensions. The necessary statutory instrument will be laid in due course.

Those pensioners whose pensions began on or before 27 April 2020 will receive an increase of 0.5 per cent, in line with the increase in the Consumer Prices Index.

This is a smaller increase than the 1.1 per cent which would have been payable had the previous indexation link to the Retail Prices Index still been in operation. 

Those pensioners who have retired on or after 28 April 2020 will receive a proportionate increase based on CPI. The following table shows the pensions increases payable.  It should be noted that the dates shown are the dates the pension begins and not the date of retirement.

Pensions Beginning Date

Percentage Increase

On or before 27 April 2020

0.5%

28 April 2020 to 27 May 2020

0.46%

28 May 2020 to 27June 2020

0.42%

28 June 2020 to 27 July 2020

0.38%

28 July 2020 to 27 August 2020

0.33%

28 August 2020 to 27 September 2020

0.29%

28 September 2020 to 27 October 2020

0.25%

28 October 2020 to 27 November 2020

0.21%

28 November 2020 to 27 December 2020

0.17%

28 December 2020 to 27 January 2021

0.13%

28 January 2021 to 27 February 2021

0.08%

28 February 2021 to 27 March 2021

0.04%

28 March 2021 onwards

Nil

Salary bands for Teachers’ Pension Scheme employee contributions, April 2021

From 1 April 2021, the contribution bands for employee pension contributions to the Teachers’ Pension Scheme will rise by 0.5 percent. This is in line with the September 2020 increase in the Consumer Prices Index (CPI).

This increase only affects the contribution bands. The contribution rates remain the same. The increase applies to members in both the Career Average and Final Salary sections of the scheme. The contribution structure is based on the teacher’s actual salary, rather than the full-time equivalent (FTE) salary.

The tiered contribution rates for the TPS from 1 April 2021 will be:

Annual Salary (1 April 2020 – 31 March 2021)

Annual Salary (1 April 2021 – 31 March 2022)

Member Contribution Rate (%)

Up to £28,168

Up to £28,309

7.4

£28,169 - £37,918

£28,310 - £38,108

8.6

£37,919 - £44,960

£38,109 - £45,185

9.6

£44,961 - £59,587

£45,186 - £59,885

10.2

£59,588 - £81,254

£59,886 - £81,661

11.3

£81,255+

£81,661+

11.7

Indexation of Teachers’ Pension Scheme Career Average pensions, April 2021

The Government has confirmed that Career Average pension rights for members in the Teachers’ Pension Scheme (TPS) will be increased by 2.1 per cent in April 2021.

Members with deferred pensions will have their Career Average pension rights increased by 0.5 per cent in April 2021.

Most teachers are in the Career Average section of the TPS. 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 the Consumer Prices Index (CPI) rate of inflation + 1.6 per cent for teachers who stay in teaching, or at CPI inflation only for those who leave the TPS.

The increase is based on the CPI figure from September 2020, which was 0.5 per cent.

Latest pensions news

Pensions
Pensions news update: Summer term 2021

Read the summer term pensions update which contains the Teachers’ Pension Scheme age discrimination cases, TPS valuation in 2016 and 2020, salary bands for Teachers’ Pension Scheme employee contributions from April 2021 and more.

 

NEU consultation response : funding increases to teachers' pensions employer contributions

Employer pension contributions are set to rise from 16.4 per cent to 23.6 per cent in September 2019. The Department for Education has been running a consultation on whether this increase should be funded by Government for the period September 2019 to April 2020 for certain sectors. The NEU's response, is arguing this should be done. Independent schools and the post-1992 universities are not within the scope of this consultation and will face serious pressures as a result.

Pensions help sheets

  • Advice Senior woman with dog on a walk in an autumn nature
    Final salary pension

    Information about the final salary section of the Teachers’ Pension Scheme (TPS), including how to find out if you are in this TPS section.

  • Advice Senior Couple Enjoy the Beach
    Career average pension

    The Teachers’ Pension Scheme will provide much of your retirement income so it is vital that you understand it.

Pensions resources

All pensions advice by topic tag

Can't find what you're looking for above? Browse all our pensions content, ordered by topic tag. As pages can have more than one topic tag, they can also appear more than once in the list below.

  • The government has published its response to the July 2020 public consultation - Public service pension schemes: changes to the transition arrangements to the 2015 schemes consultation. The NEU is pleased that the government has adopted our position and favours ‘Deferred Choice’.  

  • Information for members on pensions tax relief - annual allowances and lifetime allowance
  • Guide for teachers and other school staff who wish to continue working beyond age 65.

  • The Teachers’ Pension Scheme will provide much of your retirement income so it is vital that you understand it. This guidance covers the career average section of the Teachers’ Pension Scheme (TPS) in which most members are accruing pension.

  • In whatever capacity you work in education, there is likely to be an occupational scheme available for you to join and you may have automatic membership as soon as you are employed.
  • Information about the final salary section of the Teachers’ Pension Scheme (TPS), including how to find out if you are in this TPS section.

  • Pensions advice note on non-pensionable allowances in the Teachers’ Pensions Scheme.
  • The Government has announced its decision on how to deal with age discrimination issues in Teachers’ Pension Scheme (TPS). The issue and its solution affect pension arrangements for the vast majority of serving teachers.

  • Information about the single-tier state pension and changes to the state retirement age.