It’s important that you stay informed about changes to contributions so you can make informed decisions about your pension.

Understanding how much you’ll pay and what that means for your future benefits can help you take steps such as increasing your benefits and planning your retirement. In this blog we’ll discuss the contribution bands that will come into effect from 1 April 2025 and your options for increasing benefits.

After a recent consultation from the Department for Education (DfE), changes have been made to member contribution rates.

The table below contains the current and new member contribution rates:

The contribution rate, the percentage of your income which is calculated for your pension, is rising by 0.3% for every band but the first (7.4%)

The salary bands themselves have also increased in line with the pensions increase of 1.7% and your employer will continue to contribute 28.68%

Your pension is a significant benefit, so you also have the option to increase your benefits.

One way you can increase your benefits is through Additional Pension:

• Additional Pension can be bought by having deductions made from your salary and/or paying a one-off lump sum
• You can buy Additional Pension in multiples of £250 per annum
• The maximum payment period is 20 years and must be completed before your Normal Pension Age (NPA)
• You’ll receive your Additional Pension when you take your main Scheme benefits
• You can convert part of your Additional Pension annual benefit to a one-off tax free lump-sum when you retire.

You can find out more information on our Additional Pension webpage (This link opens in a new window).

Another way to increase your benefits is through a Buy Out election. Take a moment to read our Buy Out Explained blog (This link opens in a new window).

Faster Accrual allows you to increase your pension for a specific scheme year by paying higher contributions. Your election must be submitted before the scheme year begins, ideally by January. Your election applies to a specific year, so you’ll need to renew your election annually. Each election runs from 1 April to 31 March of the following year. Even if your affected by the Transitional Protection changes, you should still be able to take out your election as usual. If you’d like to read more about this option, you can visit our Faster Accrual webpage (This link opens in a new window).

Additional Voluntary Contribution (AVCs) is another way to increase your benefits by building up an additional pension, that’s separate to your teacher’s pension, through your contributions. These are administered by The Prudential and you can find out more by visiting their website (This link opens in a new window).

Before making any applications, we encourage you to seek financial advice on the possible tax implications that could arise. It’s important that you stay fully informed and understand any limitations to your circumstances.

We hope this blog has helped you understand our contribution changes and how you can increase your benefits. We’ve a range of information on our webpages (This link opens in a new window) so we’d recommend you visit those too.