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

Pensions news and update

Termly update 

Read the latest termly update on pensions - pensions update summer 2022

Joint union letter and NEU policy statement on pension indexation in the Teachers’ Pension Scheme

The NEU has become aware of an issue with the ‘best consecutive 3 in 10’ average salary calculation in the TPS final salary pension scheme which could affect members’ pensions, read the NEU full statement here. The NEU and other unions have produced a joint letter which will be sent to all schools and are also pursuing a regulation change with the DfE.

Pensions increase payable from 11 April 2022

The Government has published the proposed increases in teachers’ pensions with effect from 11 April 2022.  This follows confirmation by HM Treasury of the Consumer Prices Index inflation figure for September 2021.  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 26 April 2021 will receive an increase of 3.1 per cent, in line with the increase in the Consumer Prices Index.

This is a smaller increase than the 4.9 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 27 April 2021 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 26 April 2021

3.1%

27 April 2021 to 26 May 2021

2.84%

27 May 2021 to 26 June 2021

2.58%

27 June 2021 to 26 July 2021

2.33%

27 July 2021 to 26 August 2021

2.07%

27 August 2021 to 26 September 2021

1.81%

27 September 2021 to 26 October 2021

1.55%

27 October 2021 to 26 November 2021

1.29%

27 November 2021 to 26 December 2021

1.03%

27 December 2021 to 26 January 2022

0.78%

27 January 2022 to 26 February 2022

0.52%

27 February 2022 to 26 March 2022

0.26%

27 March 2022 onwards

Nil

Salary bands for Teachers’ Pension Scheme employee contributions, April 2022

From 1 April 2022 the contribution bands for employee pension contributions to the Teachers’ Pension Scheme are rising by 3.1 per cent. This is in line with the September 2021 increase in the Consumer Prices Index (CPI).

This increase only affects the contribution bands. The contribution rates remain the same. 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 2022 are as follows:

Annual Salary (1 April 2021 – 31 March 2022)

Annual Salary (1 April 2022 – 31 March 2023)

Member Contribution Rate (%)

Up to £28,309

Up to £29,187

7.4

£28,309 - £38,108

£29,188 - £39,290

8.6

£38,109 - £45,185

£39,291 - £46,586

9.6

£45,186 - £59,885

£46,587 - £61,742

10.2

£59,886 - £81,661

£61,743 - £84,193

11.3

£81,662+

£84,194+

11.7

Indexation of Teachers’ Pension Scheme Career Average pensions, April 2022

The Government has confirmed that career average pension rights for members in teaching will be increased by 4.7 per cent in April 2022.

Members with deferred pensions will have their career average pension rights increased by 3.1 per cent in April 2021.

All teachers are now accruing pension in the career average section of the Teachers’ Pension Scheme. Your pension is being built up at 1/57 of your 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 2020, which was 3.1 per cent.

Judges’ and firefighters’ age discrimination pension case February 2021

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.  Full details of the government’s response can be found here.  The NEU is pleased that the government has adopted our position and favours ‘Deferred Choice’.  Read more

Pensions advice

  • 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.

  • piggy bank on table
    Pensions contribution schemes FAQ

    Frequently answered questions on defined contribution pension schemes and what to consider when offered a pension scheme other than the TPS or LGPS.

  • 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.

  • Advice Couple looking at laptop
    State pensions

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

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.