You will no doubt be aware that from 6 April 2016 a new ‘single-tier’ State Pension will be introduced.  This will replace the existing Basic State Pension and Additional State Pension.

Under the existing arrangements, members of the Teachers’ Pension Scheme are contracted-out of the Additional State Pension and in return pay lower National Insurance contributions.  The changes mean that from 6 April 2016, the Scheme will no longer be contracted-out of the Additional State Pension and both employer and member National Insurance contributions will increase as a result of this.

These changes will not affect a member’s accrued Teachers’ Pensions benefits, or the benefits they build up in the Scheme in future. 

We’ll be communicating directly to members, to inform them that the Scheme will no longer be contracted out and how members can find out more information on the state pension and changes to National Insurance Contributions.

Further information about the new State Pension, including changes to National Insurance arrangements for members of schemes like the Teachers’ Pension Scheme, can be found below.

www.gov.uk/browse/working/state-pension (This link opens in a new window)

www.gov.uk/new-state-pension (This link opens in a new window)