As employers, you’re aware that you’re responsible for deducting Teacher Contributions if they’re members of the Teachers’ Pension Scheme. All contributions due should be remitted to the Teachers’ Pension Scheme by the 7^th following the end of each month or before if a non-working day) along with your breakdown slip. 

What are Arrears of contributions?

Unfortunately, there can be occasions when this doesn’t happen and this could give rise to contributions due falling into arrears. These occasions could be identified in a number of ways. 

• It could be that a teacher contacts us and queries a period of missing service, which then results in us writing to you asking for information. 
• You, may discover that a teacher has a period of service missing, you then submit the information notifying us of this.
• Payroll, or the teacher realises that pension contributions are not being deducted from their salary via their payslips. 

Please note that as we do not hold payroll records we rely on you submitting accurate and timely service and salary details to us. 

When any period of employment is identified as pensionable, and it’s found that no pension contributions have been collected, then arrears of contributions are due and you must inform us straight away so we can complete the calculation and raise an invoice. 

If you have any queries regarding arrears, you can visit the employer Hub at (www.teacherspensions.co.uk/employers) for advice and guidance, but please don’t hesitate to call the contact centre on 0345 606 6166 if you still have any queries so we can assist you in correcting the situation.  You can also email TPArrears@teacherspensions.co.uk (This link opens in a new window) with any queries or requests for advice.

Please do not pay any prior year arrears before you receive an invoice as there are separate payment details as one account records all the normal monthly contribution payments from establishments, the other account records individual invoice payments and also includes any compound interest that is due.

Compound Interest

When there are any prior financial year pension contribution arrears, Teachers’ Pension Scheme Regulations allow for the charging of interest, compounded with monthly rests, until the total amount is paid. The rate of interest is the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury. 

This is calculated by us and the rate used, and the amount of compound interest calculated, is noted in the accompanying correspondence with the invoice.  A breakdown is enclosed with all arrears invoices so you can see our calculations.  All invoices have a due a due date of 28 days and is clearly marked on all invoices issued.

The arrears team is always happy to advise and help you in correcting periods of service where pension contributions arrears have occurred.  If you have any disputes regarding the pension contribution calculation, please let us know and provide details so we can investigate.  It’s important for any pension contribution arrears to be paid promptly to ensure the Scheme can provide the benefits members are entitled to, when they are entitled to them.  The Teachers’ Pension Scheme is designed to take care of members when they retire, which doesn’t just mean when they’re 60 or 65. If they have to stop working through ill-health they may get their pension early, and should the unthinkable happen and they die before they retire, their family may be paid their pension benefits.

Please email the team with arrears related notifications or queries at TPArrears@teacherspension.co.uk (This link opens in a new window) or call the contact centre on 0345 601 6166.