For Members
Teachers' Pensions
Understand how much you'll pay

Understand how much you'll pay

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Your contributions are based on the amount you earn each month, so if you earn more in a month than you earned the previous month your contributions may go up.

The good news is that your employer will also be contributing towards your pension too and you’ll receive tax relief on your contributions. Your career average benefits accrue each year based on 1/57th of your pensionable earnings for that year including any overtime. For every year you’re in service the amount of pension ‘banked’ in a year is increased. If you leave service it’s increased but at a lower rate.

The pension contribution bands for 2019 are shown in the table below. They usually change each April (keep an eye on the website, and we’ll announce any changes with plenty of notice).

Annual Salary Rate for the Eligible Employment from 1 April 2019 Annual Salary Rate for the Eligible Employment from 1 April 2020  Member Contribution Rate 
Up to £27,697.99 Up to 28,168.99  7.4%
£27,698 to £37,284.99 £28,169 to £37,918.99  8.6%
£37,285 to £44,208.99 £37,919 to £44,960.99   9.6%
£44,209 to £58,590.99 £44,961 to £59,587.99   10.2%
£58,591 to £79,895.99 £59,588 to £81,254.99   11.3%
£79,896 and above £81,255 and above  11.7%

Increasing your benefits

You can increase your pension benefits by paying extra contributions. There are a number of ways you can do this but you’ll need to act quickly for some. They’re subject to a maximum amount which is reviewed each year.

You can make an annual election to purchase Faster accrualAn flexibility option available to members in the career average arrangement to increase their pension through adding a larger fraction of their pensionable earnings to it. Each election lasts for one year (April - March) and must be made before the start of the Scheme year (April).. Whilst the normal rate of accrual or growth in your pension is based on 1/57th of your earnings for that year, you can choose to pay a higher contribution rate of either 1/45th, 1/50th or 1/55th. You need to make your election within one month of starting pensionable employment. In future years you’ll need to make your election before the end of March each year.

You may want to purchase Buy outIn the Career Average arrangement, the Normal Pension Age (NPA) is either a member's State Pension Age or 65, whichever is the higher.  Members can buy out up to three years of the standard rate of actuarial adjustment between years 65 and 68 (or less if their NPA is lower)., which is where a member with a Normal Pension Age (NPA)The age at which you're eligible to claim retirement benefits without actuarial reduction. over 65 wants to take their benefits before NPA. Members can pay extra contributions throughout their career to reduce the adjustments that’ll be made to their benefits if they take them before reaching their NPA. You’ve up to six months from entering pensionable employment to make an election, after that you cannot elect to purchase this flexibility.

You can decide to purchase Additional PensionAn option available to members in the final salary and career average arrangements to increase their pension. Additional Pension can be purchased in multiples of £250 and can be paid for through monthly contributions deducted directly from salary over a set period of time, or by a one-off lump sum., which you either can buy for just yourself or for yourself and your partner or spouse. You can pay for it by a lump sum or by having deductions taken monthly from your salary.

Interested? You might want to take professional financial advice before committing yourself as there can be tax implications.


Last Updated: 12/03/2020 13:27


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