Recently, we’ve received inquiries concerning salary sacrifice for school fees.

We’d like to remind you that, contributions must be paid on the post-sacrificed salary i.e. the amount of the salary sacrificed is excluded from the contributable salary.

If your employee is paying the school fees by deduction from their salary, this won’t count as contributable salary. Any benefits paid to the member, or their beneficiaries would be based on the post-sacrificed salary.

The salary sacrifice arrangements stated in the Pay and Conditions Document that’re accepted under the Teachers’ Pensions regulations are childcare vouchers, a cycle or cyclist’s safety equipment, or a mobile phone scheme. In these cases, the amount equal to the salary sacrifice is included in the definition of contributable salary.

You can find out more in our helpful FAQ (This link opens in a new window).