Answer:

Members can opt for salary sacrifice arrangements including childcare vouchers, under the Teachers’ Pensions Regulations 2014.

The regulations refer to a 'salary sacrifice arrangement' in paragraph 34(2)(d) for maintained schools and 35 (3)(b), as defined by the relevant Pay Order.

The detail of the ‘pay order’ is set out in the School Teachers’ Pay and Conditions Document 2014 available on the government’s website (This link opens in a new window).

A member can choose to give up part of their gross salary, which enables the following benefits to remain pensionable within the Teachers’ Pensions Scheme:

• childcare voucher or other childcare benefit scheme;
• a cycle or cyclist’s safety equipment scheme; or
• a mobile telephone scheme entered into on or before 5 April 2017 (except that a salary sacrifice arrangement for a mobile telephone scheme will only be covered by the provisions of this paragraph up until 6 April 2018).

Note that for an approved salary sacrifice scheme, contributions should continue to be on the full gross pensionable salary before the salary sacrifice is applied. When providing service and salary information, the full salary prior to the sacrifice should be recorded on the MCR submission.

For unapproved salary sacrifice schemes the pensionable salary and pensionable pay is after the application of the salary sacrifice and it's the reduced salary and earnings that must be used when determining contributions or reporting service and salary information.

Guidance on this can be found here.