Arrears of contributions

As has been explained, you’re responsible for deducting teacher contributions, and for remitting both these and employer contributions to the Teachers’ Pension Scheme within seven days of the end of each month. If you don’t fulfil these responsibilities and any employment is subsequently identified as pensionable, then arrears of contributions are due.

Here’s what happens:

  1. Where you have not deducted and remitted contributions, the Teachers’ Pensions Regulations allow for the charging of interest, compounded with monthly rests, until the amount is paid. The rate of interest is the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury. 
  2. If we identify that contributions have not been deducted correctly, we will issue an invoice for arrears of contributions. These invoices must be paid immediately. 
  3. Where payment is not received, we may issue a revised invoice which takes into account recalculated compound interest.
  4. Where it is appropriate to issue separate invoices for arrears of contributions to employers and employees, irrespective of whether the employee elects to have the service disqualified or not, employer contributions will remain due. 

How missing contributions are identified

Missing contributions can be identified in a number of ways.

  • A teacher receives their annual benefit statement and queries a period of ’missing’ service. If this service was pensionable, the Teachers’ Pension Scheme will generate an invoice once the exact service and salary details have been provided by their employer.
  • You may discover that a teacher has ’missing’ service and provide the Teachers’ Pension Scheme with the necessary service and salary details so that an invoice can be issued.

HMRC inform the Teachers’ Pension Scheme that a teacher is paying National Insurance contributions at a rate which indicates that they should be a teacher of the Teachers’ Pension Scheme.

Where appropriate we will write to you to obtain service and salary details before issuing an invoice for the arrears of contributions. Please note should your members have queries with contributions or service it is your responsibility to provide this information to Teachers’ Pensions.

Last Updated: 01/04/2014 14:21

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