Popular Questions

Some questions keep being raised. So we've compiled a list of the most frequently asked ones - along with their answers.

  • Answer:

    Changes to pension law now affects all employers in the UK as employees must automatically enrol into a workplace pension scheme.

    The Teachers’ Pension Scheme is the scheme for teachers and lecturers who ordinarily work in the UK. Employees may choose to ‘opt out’ of the Scheme, but only after they have been enrolled by you.

    The Staging Date for the largest employers started in 2012, with other employers coming on board at Staging Dates to 2018. A further requirement of Auto Enrolment is that employers re-enrol those who have opted out every three years.

    Information provided by us is to assist the employer with their duties in respect of teachers and the Auto Enrolment of existing teachers who are eligible jobholders and are not currently in the Scheme.

    Our information makes reference to the employer’s staging date. However, the employer can bring the staging date forward bycontacting the Pensions Regulator at least one month before the earlier staging date at customersupport@autoenrol.tpr.gov.uk (This link opens in a new window)

    The employer’s enrolment duties can be postponed by up to 3 months and/or you can apply transitional delay to 30 September 2017, thereby postponing Auto Enrolment until 1 October 2017.

    Detailed guidance to the employers’ duties can be found on the Pensions Regulator’s website, including information about postponement and transitional delay.

  • Answer:

    After completing your audited return (EOYC), any resulting underpayment due to the Scheme should be paid immediately. You should complete an End of Year underpayment paying-in slip.

    Any underpayments, which are received after 30 September for both LAs and Non LAs, will attract interest back to the 7 May of the financial year being audited. Please indicate on the End of Year Paying in Slip.

    In the case of an overpayment you don’t need to do anything except note this on your form. Upon receipt and reconciliation of the audited EOYC, we’ll contact you regarding recovery of this amount.

  • Answer:

    The EOYC is an annual audit exercise undertaken by employers to provide assurance to the Secretary of State that the contributions collected and submitted are correct.

  • Answer:

    Yes. All employers are still required to complete an annual EOYC.

  • Answer:

    The valuation is the process by which scheme costs are measured and managed. It assesses the long-term cost of providing pensions and other benefits to members of each public service pension scheme and determines the appropriate employer contribution rates going forward.

    What was the result of the latest scheme valuation for the Teachers’ Pension Scheme?

    Following the scheme valuation, it was determined that employer contributions needed to increase to ensure that the costs of the pension scheme remain affordable, at the levels set in 2015. This increase was put in place from September 2019. The valuation also indicated that while costs were likely to increase in respect of the period 2019 to 2023, over the longer-term member benefits need to rise to return them to the level agreed in 2015. Member and employer representatives came together to discuss changes to member benefits, which led to a recommendation that, for the Teachers’ Pension Scheme, the rate at which pensions accrue should be improved.

    Before any such change to the benefit structure could come into effect, the Government was denied leave to appeal the decision that the Transitional Protection provided as part of the 2015 public service scheme reforms was discriminatory on age grounds. An Employment Tribunal (the McCloud and Sargeant cases) will now determine how this will be remedied. As a result the change to the benefit structure is currently on hold pending the Employment Tribunal decision.

  • Answer:

    Costs relating to member experiences have fallen as a result of reforms, however member costs are just one factor used to determine the cost of the Scheme.

    The cost of providing pensions is determined by a number of factors, including key assumptions on the ‘discount rate’. Future payments are discounted using the ‘discount rate’ to provide a cost of providing benefits in today’s terms. If the discount rate is reduced it means that the cost today, to provide benefits in the future, increases.

    HM Treasury reduced the discount rate for public service pensions to reflect the lower expected future growth in the economy.

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