Valuation

Answer:

Following the scheme valuation, member and employer representatives came together to discuss changes to the member benefit structure to return pension benefits back to the level agreed in 2015. Those discussions led to a recommendation that, for the Teachers’ Pension Scheme, the rate at which pensions accrue should be improved.

This change to the benefit structure is currently on hold pending the outcome of legal proceedings in the case of McCloud and Sargeant. As the Government has been denied leave to appeal the Court of Appeal decision, the required changes to adhere to the Court’s findings will be determined by the Employment Tribunal.

Answer:

Every four years, the Government Actuary’s Department (GAD) carries out a valuation of all unfunded public service pension schemes. Teachers’ Pensions is one of these schemes.

Answer:

The Employment Tribunal will determine the changes needed. At this time it’s too early to estimate how long will be needed to implement the changes. We’ll keep you updated as we know more.

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.

Answer:

The valuation results show that the cost of providing pensions has increased.  Therefore, the Government has decided that the employer contribution rate to the Teachers’ Pension Scheme should increase to 23.68% (including the administration levy of 0.08%). The changes to the employer contribution rate will take effect from 1 September 2019 to align with the academic year and allow employers additional time to plan for its implementation.

Answer:

Initial valuation results also show that member benefits need to be improved as the value of Career Average benefits had fallen below the level required when the Career Average arrangement was introduced.  However, as a result of a recent Court of Appeal case on the transitional protection arrangements for members moving from the Final Salary to the Career Average arrangement, there’s  no way to accurately calculate the value of member benefits.

Answer:

Member contribution rates will not change as a result of the valuation.  There will, however, be the usual annual review of the contribution salary bands to reflect changes to inflation.  Adjustments to the bands are effective each year in April.

Answer:

If your employer chooses to leave the Teachers’ Pension Scheme, they’ll be required to enrol you into another pension scheme. If the new scheme that your employer offers is a ‘Defined Benefits’ scheme then you may be able to transfer your teacher’s pension over to it, as long as you do this within 12 months of entering the new scheme.

If you choose to leave your benefits in the Teachers’ Pension Scheme they will continue to be index-linked, in line with the annual Pensions Increase, and you’ll be able to apply for your pension benefits from the age of normal minimum pension age (currently 55).”