Advice, guidance and news about teachers' pensions.
Advice and guidance about pensions including information on the latest pension updates (including the 2019 salary band contribution changes), pensions advice and key documents.
Some law firms are asking teachers to sign up to “no win no fee” employment tribunal cases seeking compensation arising from the changes to the Teachers’ Pension Scheme implemented in 2015.
The Government has already confirmed that members of the Teachers' Pension Scheme will be compensated on the same basis as the litigants in the cases already decided in respect of judges and firefighters, without any need to lodge their own cases.
These law firms are asking members to pay as much as £1,800 (£1500 plus VAT) in legal fees, to be paid from compensation which the Government has already said will be payable. The compensation payable to some members of the Teachers’ Pension Scheme may be less than the legal fees being quoted, and some members may actually have gained from the changes in which case no compensation would be payable.
The NEU believes that legal action is wholly unnecessary. If the position changes then members will be informed.
The Government has published the proposed increases in teachers’ pensions with effect from 8 April 2019.
From 1 April 2019 the contribution bands for employee pension contributions to the Teachers’ Pension Scheme are rising by 2.4 per cent. This is in line with the September 2018 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 the Career Average section and the Final Salary sections of the scheme. 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 2019 are as follows:
|
Annual Salary (1 April 2018 – 31 March 2019) |
Annual Salary (1 April 2019 – 31 March 2020) |
Member Contribution Rate (%) |
|
Up to £27,047 |
Up to £27,697 |
7.4 |
|
£27,048 - £36,410 |
£27,698 - £37,284 |
8.6 |
|
£36,411 - £43,171 |
£37,285 - £44,208 |
9.6 |
|
£43,172 - £57,216 |
£44,209 - £58,590 |
10.2 |
|
£57,217 - £78,022 |
£58,591 - £79,895 |
11.3 |
|
£78,023+ |
£79,896+ |
11.7 |
The Government has confirmed that career average pension rights for members in teaching will be increased by 4 per cent in April 2019.
Members with deferred pensions will have their career average pension rights increased by 2.4 per cent in April 2019.
Most teachers are 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 2018, which was 2.4 per cent.
Following this case, the Government will be required to take action to compensate members of public sector pension schemes who were excluded from protection measures applied when schemes changed in 2014 and 2015.
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.
Information about the final salary section of the Teachers’ Pension Scheme (TPS), including how to find out if you are in this TPS section.
An overview of the Local Government Pension Scheme, introduced in 2014
The Teachers’ Pension Scheme will provide much of your retirement income so it is vital that you understand it.
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 and check your pension is correct.
Local Government Pension Scheme
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An overview of the Local Government Pension Scheme, introduced in 2014
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.
Information about the final salary section of the Teachers’ Pension Scheme (TPS), including how to find out if you are in this TPS section.
